Federal Council outlines billion-euro savings package to restructure finances
Published: Friday, Sep 20th 2024, 14:10
Zurück zu Live Feed
The national government is planning a comprehensive package of measures to get the federal budget back on track. From 2027, it wants to reduce the budget by CHF 3.6 billion. From 2030, the figure is to be CHF 4.6 billion. The army is not to be affected.
The Federal Council includes a total of sixty measures on the list published on Friday entitled "Measures for the review of tasks and subsidies". The basis for the proposals was the report presented by a group of experts at the beginning of September.
In the longer term, the planned waiver of federal contributions for supplementary childcare will have the greatest impact. This should reduce the federal budget by almost CHF 900 million per year from 2030. The Federal Council wants to save half a billion francs per year by reducing the integration lump sum for refugees to four years.
Other major potential savings items include the elimination of climate protection subsidies, such as for the building program (CHF 400 million), the freezing of expenditure on development aid (CHF 313 million), measures within the Federal Administration (CHF 305 million), the reduction of contributions to the railroad infrastructure fund (CHF 200 million) and contributions to the National Fund (CHF 145 million).
Army excluded
The army is not on the list of savings proposals. If army spending were increased less quickly and the rebuilding of defense capabilities slowed down, fewer savings would have to be made in other policy areas, the group of experts announced at the beginning of September. The Federal Council apparently does not want to know anything about this.
It also wants to abandon the abolition of subsidies for freight transport or housing subsidies as well as bridging benefits for older unemployed people. The Federal Council refers in part to pending proposals in parliament and in part to referendums that must be accepted.
On the revenue side, the Federal Council is only planning two additional measures amounting to around CHF 300 million in 2028: Capital withdrawals from the second and third pillars are to be taxed at a higher rate in future. The Federal Council is also considering auctioning off all import quotas for agricultural goods, which could also lead to additional revenue.
The Federal Council writes of "key figures of the relief package for the federal budget". The details are expected to be presented with the consultation draft by the end of January 2025. The Federal Council plans to present a framework decree that includes amendments to numerous laws.
Social sector severely affected
The Federal Council's proposals are likely to be hotly debated in the consultation process and later in parliament. Left-wing circles are likely to be particularly displeased with the lower subsidies in the climate sector, as well as the planned waiver of federal daycare subsidies.
Subsidies for night train services abroad are also to be cut. This subsidy was only recently approved by Parliament as part of the revision of the CO2 Act.
The planned halving of federal contributions to indirect press funding is also likely to be controversial. The membership and foundation press is to be excluded from this in future. Subsidies for the local and regional press are to be cut.
"Everyone should make a contribution"
The planned waiver of federal subsidies for agriculture, the reduction in contributions to the National Roads and Agglomeration Transport Fund and further cuts in the transport sector could cause offence to the conservative side.
The tourism regions are likely to howl at the planned reduction in financial aid for Switzerland Tourism. The cantons will probably not agree with the planned transfer of tasks in the security sector. For example, border guard services at airports are to be charged to the cantons in future.
"All areas of responsibility should make a contribution," writes the Federal Council on its savings proposals. And adds: "Even if the relief package were fully implemented, the Confederation's ordinary expenditure would continue to grow by over 2% per year." Specifically, they would increase from CHF 80 billion in 2023 to CHF 91 billion in 2027 and CHF 96 billion in 2030.
©Keystone/SDA
German 
English 
French 
Spanish 
Arabic