The Swiss Times - Swiss News in English

The St. Gallen Government Budgets a Deficit Again for 2024

The St. Gallen government has presented a budget for 2024 with an expenditure deficit of 42 million Swiss francs. This includes equity contributions of around 116 million Swiss francs. Last year, a deficit was already anticipated. The outlook for the coming years is more positive. Specifically, the government expects an operating expenditure surplus of 158 million Swiss francs in the 2024 budget with a total expenditure of 5.6 billion Swiss francs. 85 million Swiss francs will be taken from the free reserves and 30.6 million Swiss francs from the special equity due to the debt brake. This results in the reported deficit of 42 million Swiss francs. After these contributions, the canton still has equity of 1.1 billion Swiss francs. Recently, St. Gallen was "upgraded" and now has a Triple-A rating from Standard & Poor's, "like the federal government". The reasons for the red figures in the budget include the loss of the National Bank dividend, increasing state contributions and higher personnel expenses. Two tax cuts, which the majority of the Cantonal Council pushed through in recent years, also play a role. They have an impact of around 160 million Swiss francs, Mächler confirmed in response to a question. The basis of the budget is the current account 2023, which is expected to have a higher deficit than forecast. The main reason is the loss of National Bank funds, which had been set at around 150 million Swiss francs. For personnel, a price adjustment of 1.6 percent is planned for 2024. Additional positions are also planned within the framework of the Cantonal Council's requirements for IT and the Cantonal Police. Net investments amount to 194 million Swiss francs. The St. Gallen government has presented a budget for 2024 with an expenditure deficit of 42 million Swiss francs. This includes equity contributions of around 116 million Swiss francs. Last year, a deficit was already anticipated, but the outlook for the coming years is more positive, with an operating expenditure surplus of 158 million Swiss francs expected in the 2024 budget. Reasons for the deficit include the loss of the National Bank dividend, increasing state contributions and higher personnel expenses, as well as two tax cuts which have an impact of around 160 million Swiss francs. The basis of the budget is the current account 2023, with net investments amounting to 194 million Swiss francs. The canton still has equity of 1.1 billion Swiss francs and recently received a Triple-A rating from Standard & Poor's.

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