Canton of Vaud posts deficit for the first time in years
Published: Tuesday, Mar 26th 2024, 14:00
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The Vaud cantonal accounts show a deficit of CHF 39 million for 2023. This is the first time since 2004 that the canton has been in the red. The government announces an action plan to slow down the growth in expenditure.
"The situation is serious, but under control," said Vaud's Finance Director Valérie Dittli (center) to the media in Lausanne on Tuesday. The deficit is close to balance and is less serious than budgeted. The canton had expected a deficit of 230 million francs. "We were expecting hail, but it rained heavily," added Dittli.
The canton is at a crossroads. It must act immediately to avoid falling into a deficit spiral and having to take restructuring measures, emphasized the State Councillor. First of all, it was important to understand the nature of the deficit and determine whether it was a cyclical or structural deficit.
Increasing efficiency without reducing performance
A cross-departmental working group has been formed to find ways to slow down the increase in expenditure, starting with the 2025 budget. The aim is to "increase efficiency without reducing services", says Dittli. For example, the aim is to check whether budgeted amounts are not being used.
In addition to other measures, the State Council is also considering adjusting the projects included in its legislative program. "We will have to examine what is feasible and what is not, and in what timeframe," continued the Minister, without going into detail,
Uneven growth
Gross expenditure in the canton of Vaud rose to CHF 11.484 billion in 2023. This is significantly higher than the budget (+404 million) and expenditure in 2022 (+520 million).
This is due in particular to the costs associated with the war in Ukraine, the energy crisis, the social welfare system and the cost-of-living adjustment for state employees.
In comparison, income increased only slightly last year by CHF 66 million to a total of CHF 11.444 billion. While various income items such as tax revenue (+239 million francs) increased, the loss of profit distribution by the Swiss National Bank (SNB) (-375 million francs) had a negative impact on the result.
Meanwhile, gross investments rose to a new record level, increasing by CHF 125 million to a total of CHF 529 million. The canton spent the majority of this money on buildings. Debt remained unchanged at around 700 million francs at the end of 2023.
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