Canton Obwalden must continue to release reserves
Published: Friday, Sep 20th 2024, 09:50
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According to the cantonal government, Obwalden is in a difficult financial situation. As with the 2024 budget, the canton will also have to draw on its reserves for the 2025 budget.
As the government council announced on Friday, next year's budget closes with an income surplus of CHF 1.6 million. The positive result is only possible because CHF 22.6 million will be drawn from the fluctuation reserves.
Obwalden had budgeted an income surplus of CHF 0.7 million for 2024, thanks to a release of fluctuation reserves amounting to CHF 17.9 million. Obwalden will continue to rely on these reserves in the future. According to the government council, the financial plan envisages that around CHF 70 million in reserves will be released by 2030.
Hospital causes additional costs
Obwalden is budgeting expenses of CHF 373.2 million and income of CHF 374.8 million for 2025. Expenses will increase by around CHF 10 million compared to the 2024 budget. 40 percent of the additional expenditure is accounted for by compensation for the public services provided by the cantonal hospital.
Despite the difficult situation, the government council wants to increase the salaries of state employees. One percent is earmarked for general salary increases and a further one percent for individual salary increases. Eight new jobs are also to be created.
The canton of Obwalden is budgeting total investments of CHF 135.5 million, of which CHF 43.8 million net will be borne by the canton. One focus is on projects to prevent natural hazards.
According to its own statements, the cantonal government is examining measures to improve the canton's financial situation. These may also be at the expense of the municipalities. The abolition of the bridging pension for cantonal employees is being examined. The government expects higher tax revenues through the introduction of the 13th AHV pension and an adjustment to the transport tax.
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