High-spending departments to experience greater savings pressure
Published: Friday, Sep 6th 2024, 19:40
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High-growth sectors are to be made more responsible for possible savings packages in the federal budget in the coming years. This is what the responsible Council of States committee is demanding of the Federal Council.
The majority of the Finance Committee of the Council of States (FK-S) is convinced that so-called cross-sectional cuts should no longer be made on a linear basis in future. By 6 votes to 3 with 3 abstentions, it adopted a motion that provides the Federal Council with a principle for the implementation of any cross-cutting cuts from 2026, as reported by the parliamentary services on Friday.
The Federal Council is thus instructed to make any future cross-sectional cuts to adjust the budget not on a linear basis, but in proportion to the growth rate of the budgets of the respective areas of responsibility. The majority of the Commission considers this method to be fairer to areas that have shown themselves to be economical in terms of requirements and budget in recent years.
The minority, on the other hand, is of the opinion that the areas that have received more funding are precisely those in which there is a demonstrable need or which have been prioritized by Parliament. Therefore, the request contradicts previous decisions made by Parliament.
Next, a sub-commission of the FK-S will prepare a specific proposal to be included in the 2026-2028 financial plan as a mandate to the Federal Council.
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