Switzerland outlines budget plan to save billions of francs

Federal Council outlines billion-euro savings package to restructure finances Keystone-SDA

Switzerland is planning a comprehensive package of measures to reduce the federal budget by CHF3.6 billion from 2027, rising to CHF4.6 billion in savings by 2030.

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The Swiss government outlined a total of 60 “measures to review tasks and subsidies”. The proposals were based on the report presented by a group of experts at the beginning of September.

In the longer term, the planned waiver of federal contributions for supplementary childcare will have the greatest impact. This should reduce the federal budget by almost CHF900 million per year from 2030.

The Federal Council wants to save half a billion francs per year by reducing the integration lump sum for refugees to four years.

Other major potential savings items include waiving climate protection subsidies, for example for the building program (CHF400 million), freezing development aid expenditure (CHF313 million), measures within the Federal Administration (CHF305 million), reducing contributions to the railroad infrastructure fund (CHF200 million) and contributions to the National Fund (CHF145 million).

Army exempt from cuts

The army is not on the list of savings proposals. If army spending were increased less rapidly and the rebuilding of defence capabilities slowed down, fewer savings would have to be made in other policy areas, the group of experts announced at the beginning of September. The Federal Council clearly does not want to know anything about this.

It also wants to forego the abolition of the subsidy for freight transport or housing subsidies as well as the bridging benefits for older unemployed people. The Federal Council refers in part to pending proposals in parliament and in part to referendums that must be accepted.

Further details are expected to be presented with the consultation draft by the end of January 2025. The Federal Council plans to present a framework decree that includes amendments to numerous laws.

Translated from German by DeepL/mga

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