Swiss cantons could save over CHF13 billion, study shows

Potential savings of 13.1 billion for the cantons Keystone-SDA

A study has identified potential savings of CHF13.1 billion ($15.4 billion) for the Swiss cantons.

In education alone, over CHF5 billion could be saved in principle each year, according to an analysis by the University of Lausanne and consulting firm PwC.

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To achieve these savings in education, cantons should follow the example set by canton Graubünden, according to a press release issued on Sunday evening by PwC Switzerland. The consultancy firm, in collaboration with the Graduate Institute of Public Administration at the University of Lausanne, has conducted an assessment of cantonal efficiency. The NZZ am Sonntag newspaper was the first to report this.

According to the report, CHF2.8 billion could be optimised in the social sector. The cantons and municipalities allocate the second-largest budget to this sector, after education. The cantons of Ticino, Fribourg, Valais, Glarus, and Jura are cited as good examples for their compensation funds, says the press release.

The study examined three other areas in addition to education and social welfare. As far as road infrastructure is concerned, greater efficiency could save CHF2.3 billion across all cantons. In public order and security, spending could be reduced by CHF1.7 billion, and in culture by CHF1.1 billion.

Swiss cantons might struggle to implement savings

The authors of the analysis emphasised that the amounts indicated are theoretical and cannot be fully achieved. The cantons are subject to factors beyond their control, such as geographical location or population density. Instead, the aim is to assess efficiency by comparing it with that of the best-performing cantons.

The analysis aims to identify where cantons and municipalities can improve the balance between the quality and quantity of their services and their expenditure. Since the starting conditions vary from canton to canton, measures should be adapted accordingly. Even if only half of the potential savings were achieved, it would exceed the amount recently announced by the Confederation, according to the study’s authors.

The Swiss government aims to reduce the federal budget by CHF3 to 3.5 billion by 2027, and by CHF4 to 4.5 billion by 2030. The cantons have expressed reservations about these savings proposals. However, in many areas of joint federal-cantonal funding, the cantons are obliged to adhere to predefined performance levels.

Translated from French by DeepL/sp

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