Reduction of the cantonal share is problematic for finance directors

Published: Thursday, Sep 19th 2024, 14:30

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The Conference of Cantonal Finance Directors (FDK) considers a reduction in the cantonal share of direct federal tax in favor of the army budget to be highly problematic. This would be tantamount to shifting the burden from the Confederation to the cantons.

The cantonal share of direct federal tax is a central and earmarked source of income for the cantonal budgets. This was increased in 2020 in order to restore the balance between the Confederation and the cantons following the abolition of cantonal tax status. Moving away from the existing cantonal share would result in an imbalance at the expense of the cantons, the FDK said in response to an inquiry from the Keystone-SDA news agency.

The financing of the army should be the sole responsibility of the federal government. While certain cantons had high surpluses, others were struggling with deficits, the report continued.

©Keystone/SDA

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