St. Gallen government again budgets a deficit for 2025
Published: Monday, Sep 23rd 2024, 15:20
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The St. Gallen government has presented a budget for 2025 with an expenditure surplus of CHF 43 million. However, this includes equity withdrawals of around 156 million francs. A large deficit had already been estimated last year. No savings packages are planned for the time being.
The 2025 budget is based on the provisional 2024 accounts. The figures there are "very red", said Head of Finance Marc Mächler (FDP) at the presentation on Monday. Specifically, the canton is expecting a deficit of between 250 and 300 million francs in the current year.
With total expenditure of CHF 5.8 billion, the government is forecasting an operating expenditure surplus of CHF 198.8 million in the 2025 budget. This result is CHF 17 million worse than forecast in the task and finance plan (AFP).
Partly due to the debt brake, CHF 125 million is to be withdrawn from the free reserves and CHF 30.6 million from the special equity. This will ultimately result in the minus of CHF 43.2 million shown in the budget. After these withdrawals, the canton will still have equity of CHF 760 million at the end of 2025.
"We can cope with the deficits," said the CFO. However, it is clear that equity is now falling significantly. No savings packages are planned for the time being. Possible relief will be discussed in the February session as part of the consultation on the AFP.
More money from financial equalization
Compared to the 2024 budget, the government is assuming higher payments from the federal financial equalization scheme for 2025. The head of finance noted that the level of resources has decreased. There is less momentum than in other cantons. The reasons are now being investigated in more detail.
Additional expenditure is expected in areas such as hospitalizations and the "biggest bone of contention", according to Mächler, personnel expenses. The full inflation adjustment of 1.1 percent is planned.
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