These are the most important decisions in the 2024 budget debate
Published: Thursday, Dec 21st 2023, 14:30
Updated At: Thursday, Dec 21st 2023, 14:30
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In the winter session, the National Council and Council of States adopted the federal budget for the coming year and the 2025 to 2027 task and finance plan. Here is an overview of the most important points (in alphabetical order):
ARMEE: Switzerland should not spend one percent of its gross domestic product (GDP) on national defense until 2035 and not as early as 2030. The National Council has prevailed over the Council of States on this issue.
ASYLUM SOCIAL ASSISTANCE: Parliament has reduced the funds for social assistance for asylum seekers, temporarily admitted persons and refugees by CHF 30 million compared to the Federal Council's proposal. This means that the State Secretariat for Migration (SEM) will have just under CHF 1.1 billion available for social assistance in the asylum system next year. Compared to 2023, expenditure will increase less sharply.
RAIL INFRASTRUCTURE: Parliament wants to pay CHF 38 million less into the rail infrastructure fund next year than proposed by the Federal Council. The total contribution amounts to CHF 5.9 billion. In view of the tight financial leeway, the councillors opted for this trick in order to comply with the debt brake.
FEDERAL ASSEMBLY: Parliament rejects the allocation of an additional CHF 1 million to improve the protection of the parliament building at night and at weekends. The global budget of the Parliamentary Services is reduced accordingly compared to the Federal Council's proposal.
DEVELOPING COUNTRIES: The investment expenditure of the State Secretariat for Economic Affairs (Seco) for loans and investments in developing countries will remain the same next year as before. The Federal Council envisaged an additional CHF 10 million to increase the equity capital of the development finance company Sifem, which was rejected by Parliament.
COURTS: Current expenditure for the Federal Supreme Court and the Federal Administrative Court will increase less than budgeted by the Federal Council in 2023. In total, Parliament is spending around CHF 3 million less than the government.
EQUALIZATION: Parliament is increasing the global budget of the Federal Office for Gender Equality (FOGE) by CHF 1.5 million in each of the financial planning years 2025 to 2027 compared to the Federal Council's proposal. Compared to today, this is an increase of around CHF 0.8 million. The additional funds are to be used to finance the campaign to prevent violence.
HUMANITARIAN ACTIONS: Parliament has cut the Foreign Ministry's credit for humanitarian actions by CHF 10 million. The background to this is that the National Council originally wanted to cut the Swiss contribution of CHF 20 million to the UN Palestinian Relief and Works Agency (UNRWA). However, the final decision leaves open where the Federal Council should save the money.
AGRICULTURE: Direct payments for farmers will remain at the 2023 level of around CHF 2.8 billion. The Federal Council wanted to save just under CHF 55 million here. Sales promotion of Swiss wine, the global budget of the Federal Office for Agriculture (FOAG) - specifically for pest control - and contributions to sugar beet producers will be reduced to a lesser extent. The same amount of money as in the current year will be spent on the preservation of Swiss animal breeds and on herd protection measures. These measures will result in additional expenditure of around CHF 17 million compared to the Federal Council's proposal.
PROTECTION OF MINORITIES: Parliament is providing CHF 2.5 million more for the protection of religious minorities in the coming year than was originally planned in the Federal Council's budget. The money will benefit Jewish and Muslim communities.
REGIONAL PASSENGER TRANSPORT: Parliament is increasing federal funding for regional passenger transport by CHF 50 million compared to today. The Federal Council proposed a reduction of CHF 5 million. In future, transport companies will have around CHF 1.134 billion at their disposal for the planned uncovered costs.
REGIONAL POLICY: Parliament has halved the contribution to the regional policy fund to CHF 12.5 million. The decision is a compromise. The Council of States originally wanted to approve the entire CHF 25 million requested by the Federal Council, while the National Council wanted to dispense with a contribution altogether.
TAXES: Parliament is creating additional positions for VAT controls at a cost of CHF 2.1 million and is budgeting an increase in VAT revenue of CHF 7.5 million as a result of these additional personnel resources.
ENVIRONMENT: Parliament cuts the global budget of the Federal Office for the Environment (FOEN) by CHF 1.8 million compared to the Federal Council's proposal. This involves a reduction in personnel expenses. Compared to today, this means a 3.3 percent reduction in functional expenditure.
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