According to experts, the federal government can do without billions in expenditure
Published: Thursday, Sep 5th 2024, 13:50
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The group of experts appointed in the spring identifies up to CHF 5 billion in potential savings in the federal budget. It proposes over sixty measures with which the financial balance can be restored. The Federal Council welcomes the report.
On Thursday, the committee, headed by the former head of the Federal Finance Administration, Serge Gaillard, presented its report to the media in Bern. The day before, the Federal Council received its final demands and held an initial discussion on them.
Over the past few months, five experts have scrutinized all federal tasks and subsidies with the aim of eliminating the structural deficits in the federal budget. According to financial planning, these amount to around CHF 3 billion per year. This is due in particular to additional expenditure for the AHV and the army.
6 to 7 percent less expenditure
In addition to Gaillard, former National Councillor Ursula Schneider Schüttel (SP/FR), former National Councillor Jacques Bourgeois (FDP/FR) and professors Aymo Brunetti and Christoph Schaltegger were entrusted with the task. In the 62-page final report with 66 measures, they show how the federal budget can be relieved by CHF 4 to 5 billion in the coming years.
The group of experts recommends that the Federal Council eliminate the deficits through expenditure-side measures - which was also in line with the government's mandate. The panel also discusses revenue-side measures, but does not consider them to be a priority.
With expenditure totaling over 70 billion francs, the savings potential is around 6 to 7 percent. The group of experts presents concrete measures in all areas of responsibility and points out areas in need of reform. It also proposes cuts of CHF 0.2 to 0.3 billion in the federal administration's own areas.
Proposals in practically all areas
According to the report, around CHF 1.7 billion could be saved in 2027 and around CHF 2 billion in 2030 with measures in migration policy, climate and energy policy and transport infrastructure. Current subsidies - for example the promotion of freight transport - should be questioned or fund contributions reduced.
The committee also sees potential savings of CHF 1.3 billion (2027) and CHF 1.5 billion (2030) where the federal government has become active in the cantons' areas of responsibility - for example in childcare. Further savings of CHF 0.2 to 0.4 billion could be achieved by curbing the growth in expenditure on social welfare.
Cutting and eliminating smaller subsidies would also result in a reduction in expenditure of CHF 0.1 billion, according to the expert group. An additional CHF 0.3 to 0.6 billion could be saved by reprioritizing expenditure.
Overall, the group of experts believes that Switzerland is in a position to overcome the fiscal policy challenges with expenditure-side relief measures, as stated in the summary of the report. "Suspending the debt brake would restrict Switzerland's future fiscal policy leeway."
Political debate begins
According to the Federal Council, the first budget relief measures are to be implemented from 2026 and 2027 on the basis of the expert group's proposals. The report is a "good basis for further steps", wrote the federal government. The aim is to achieve balanced budgets and regain sufficient room for maneuver.
From today's perspective, the Federal Council considers a relief volume of CHF 3 to 3.5 billion to be necessary from 2027. From 2030, the necessary relief volume will increase to CHF 4 to 4.5 billion per year. It will be inevitable that some measures will affect the cantons, he wrote. However, he did not want to make any fundamental changes to the division of tasks with the cantons.
Round tables with cantons, political parties and social partners will be convened in the coming days. The next steps are to be determined as early as the end of September. The Federal Council is expected to conduct an ordinary consultation on the defined measures in January. Parliament will then make the final decision.
©Keystone/SDA
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