The 2021 accounts of the State of Geneva end with a surplus of income of 49 million francs, while a deficit of 847 million francs had been budgeted. An unexpected result that was obtained “above all” thanks to extraordinary tax revenues.
These record revenues, with a surplus of 999 million francs in relation to the budget, come in particular from the tax on legal persons. The major buoyant sectors of the Geneva economy, namely international trade, finance and watchmaking, recorded a considerable upturn in activity.
The coffers of the State of Geneva also benefited from numerous real estate transactions with disproportionate amounts during the 2021 financial year. The canton was also surprised to receive a retrocession of additional profits from the Swiss National Bank (SNB) bringing it 117 million francs more than expected.
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While the flagship sectors of the economy contributed strongly to these positive accounts, households experienced a much less successful year in 2021. Personal income tax was thus CHF 58 million lower than budget.
Health crisis
The 2021 financial year was marked by the health crisis, and the fifth wave of Covid-19. This difficult context obviously weighed on the accounts of the State of Geneva, resulting in expenditure for the canton of 346 million francs in the form of financial support for the economy, culture, hospital and public transport. .
The Council of State recalls that certain parts of the Geneva economy, such as catering, events, air transport and tourism have been particularly shaken by the health crisis. “Social assistance needs have increased during the pandemic and everything suggests that this situation could continue”.
Thanks to the positive accounts, the financial debt of the State fell slightly to 12.4 billion francs. The government, however, draws attention to the fact that the amount of debt remains the highest in Switzerland and that Geneva has so far been able to benefit from “very low” interest rates.
ats/gma