Commission calls for more money for farmers and less for asylum
Published: Thursday, Nov 23rd 2023, 18:30
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More money for agriculture, financed with cuts in asylum and regional policy: this is the result after several weeks of discussions on the 2024 federal budget in the National Council's Finance Committee (FK-N). The debate in the Council is likely to be intense.
The subcommittees of the FK-N spent several weeks discussing the 2024 budget and the 2025-2027 financial plan. They then presented the committee with numerous amendments to the Federal Council's draft, as reported by the parliamentary services on Thursday evening.
In a nutshell, agriculture is to receive almost CHF 70 million more. On the other hand, there will be cuts in social assistance for asylum seekers, temporarily admitted persons and refugees (minus CHF 30 million) and regional development (minus CHF 25 million).
Little leeway due to debt brake
All in all, the FK-N is proposing a budget to the National Council that provides for additional expenditure of CHF 16.3 million compared to the Federal Council's draft. This means that the structural surplus still amounts to CHF 9.6 million.
Shortly before the end of the budget deliberations, there was still a structural deficit of 75.4 million francs. As this would not have met the requirements of the debt brake, the committee decided to revert to some of the decisions it had already made and save CHF 85 million.
The Federal Council has already had to trim the budget so that the budget targets are met. The austerity measures include, in particular, a 2% cut in low-committed federal expenditure. The army is exempt from this cut because parliament has decided to gradually increase army spending to one percent of gross domestic product (GDP).
More money for direct payments to farmers
In the overall vote, the FK-N approved its version of the estimates by 11 votes to 1 with 13 abstentions. This indicates that many members were not entirely satisfied. The budget proposal will be debated for hours in the National Council. There are numerous minority motions.
Among other things, there were clear majorities in the National Council Committee for an increase of CHF 54.8 million in direct payments in agriculture. There was also broad support for additional funds for the preservation of Swiss animal breeds and for herd protection measures. The FK-N is already requesting an additional supplementary credit of three million francs for herd protection for the current year.
The decision to increase the funds for the promotion of Swiss wine sales by CHF 6.2 million was a closer call in the committee. The increase in funding for the preservation and promotion of the Swiss National Park by CHF 83,000 was also close.
Cuts in social assistance for asylum seekers
The additional expenditure is to be partially offset by cuts in other areas. For example, the FK-N wants to cancel the entire contribution of CHF 25 million to the regional development fund. The sister committee of the Council of States (FK-S) also envisages cuts in this area.
Unlike the FK-S, the National Council committee also proposed a CHF 30 million reduction in compensation to the cantons for social assistance paid to asylum seekers, temporarily admitted persons and refugees. According to the press release, this decision was made by 14 votes to 10 with one abstention.
Furthermore, the National Council committee does not want to hear of an extension of the federal building surveillance by one million francs, as proposed by the Federal Council.
Promoting reconstruction in Ukraine
The Finance Committee of the National Council finally decided on a committee motion with regard to the creation of a fund for the reconstruction of Ukraine. The amount made available is to be booked as an extraordinary item and not as part of the regular international development cooperation budget.
The debate on the federal budget traditionally takes place in the winter session in December. The debates are usually animated and often emotional. This year is likely to be no different given the gloomy financial outlook for the federal government.
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