The Swiss Times - Swiss News in English

Thurgau closes 2023 accounts with a 40 million deficit

The canton of Thurgau reported a deficit of CHF 39.9 million in its 2023 income statement. Among other things, the account was burdened by the lack of distributions from the National Bank. The government is planning a tax increase in its financial strategy.

"The negative result was expected," said Finance Director Urs Martin (SVP) at the presentation of the 2023 state accounts. With expenditure of CHF 2.49 billion, there is a shortfall of CHF 150.2 million in financing, according to a statement from the State Chancellery. This is ultimately reflected in the reduction in net assets, which are reported at CHF 530 million.

In a press release, the canton emphasized the development of tax revenue as "pleasing". Fiscal revenue exceeded the budget by CHF 7.3 million. In addition, interest income on financial assets was once again recorded.

The canton faces major investments

According to the press release, the net investment volume of CHF 71 million last year was significantly higher than in previous years. However, the target of 81.1 million francs was missed as projects had to be postponed.

This will increase the upcoming investment expenditure over the next few years in addition to the planned renovation of the museum landscape, the school buildings, the new cantonal prison and the police building.

"We want to and must continue to invest in the coming years in order to further develop the canton and fulfill the legal mandate," Martin was quoted as saying in the canton's press release. However, it is clear that priorities must be set. "The 2023 financial statements show how urgently the financial strategy adopted by the cantonal government in January 2024 is needed," said Martin.

Government plans tax rate increase

The government's financial strategy aims to restore balance to Thurgau's state budget, which is currently in deficit. This includes a tax rate increase of eight percentage points for at least six years. This would at least temporarily reverse a tax reduction that has been decided as of 2022.

©Keystone/SDA

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