Canton of Geneva posts record surplus thanks to high tax revenues
Published: Thursday, Mar 21st 2024, 12:00
Updated At: Thursday, Mar 21st 2024, 15:42
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The 2023 annual accounts of the canton of Geneva close with a record surplus of CHF 1.398 billion thanks to high tax revenue. A deficit of 476 million francs was budgeted.
"The 2023 accounts are excellent," said a delighted Antonio Hodgers (Greens), President of the cantonal government, to the media in Geneva. "The Geneva economy has delivered and this is strongly reflected in our accounts."
The surplus of just under CHF 1.4 billion is primarily due to the much higher than expected tax revenue. These had increased by CHF 1.78 billion compared to the budget and by CHF 450 million compared to the 2022 accounts. Wholesale trade, the financial sector and the watch industry, the main pillars of Geneva's economy, have grown at an unprecedented rate, explained Finance Director Nathalie Fontanet (FDP).
Tax revenue from legal entities was CHF 928 million higher compared to the 2023 budget. Tax revenue from natural persons was CHF 348 million higher.
Tax cut for the middle class
"After several years of positive results, we can no longer speak of an exceptional situation, we are in something more permanent, in a trend," said Hodgers.
Thanks to extraordinary tax revenue, Geneva's 2022 state accounts had already closed with a record surplus of 727 million at the time, while the budget had anticipated a deficit of 93 million.
"The government has decided to return some of these good results to the population with two strong measures, a tax cut for the middle class and free public transport for young people up to the age of 24." These two proposals must be confirmed by the Grand Council.
Recapitalization of the pension fund
Head of Finance Fontanet also announced that the State Council had decided to use the entire surplus to amortize the recapitalization of the Geneva State Pension Fund (CPEG). This will reduce the burden on the state by CHF 40 million from the 2025 budget.
The economic reserve will not be increased. It already amounts to one billion Swiss francs and is sufficient to counter imponderables, explained the government.
Expenditure was 1 percent above budget (+98 million francs). Debt fell by 884 million to 10.6 billion francs. Here, too, things are moving in the right direction, said Fontanet. This result enables the self-financing of investments, which will amount to CHF 511 million by 2023, which corresponds to an increase of 9 percent compared to 2022.
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