2023-12-05 22:16:00
The State of Neuchâtel is holding its budget for next year. The Grand Council validated on Tuesday the projections submitted to it for 2024 with 86 yes, 2 no and 11 abstentions. The refusals came from the popist ranks, while the abstentions came from the UDC group.
The budget, adopted in an amended version, expects a profit of 9.5 million francs. It is the result of compromises found in committee.
This result can be explained in particular by the good economic situation, with tax revenues estimated at 66 million francs higher than expected compared to the 2023 budget.
In this context, the Council of State has proposed a 1% reduction in taxes for the next two years; a reduction accepted by the legislature.
Subsidies for health insurance premiums revised upwards
For the socialist group, through the voice of Jonathan Gretillat, this budget is a real paradox: “it is indecent that public finances are doing so well while the population is today in the worst shape” financially, in the face of multiple crises (inflation, rise in health insurance premiums and energy costs).
In this sense, the socialist group says it is happy to have managed to increase the envelope for subsidies for health insurance premiums to 10 million francs, compared to 8.3 million francs planned by the Council of State. . With this increase, the extraordinary “cost of living” subsidy, introduced last year, enters into the ordinary subsidy regime.
The VertPOP group, for its part, believes that the budget must allocate the necessary amounts to everyone. In particular, he managed to pass an amendment of 500,000 francs to further support students with special needs and another of 50,000 francs to improve the protection of herds against wolves.
Call from the right to reduce the sail
For its part, the right continues to demand a reduction in state costs, but has largely supported the tax reduction granted.
The PLR group attempted, through several amendments, to cut spending. He succeeded on one point: a total of 1.63 million francs will be saved in goods, services and other operating expenses
The UDC group, for its part, deplored the lack of anticipation in view of future budgets which promise to be more complicated. He calls for urgent cost-saving measures. Through a recommendation, ultimately refused, the UDC, for example, attempted to limit the number of civil service employees to 2,400 FTEs. The group nevertheless supported the tax cut, which will deprive the State of tax revenue, but for UDC deputy Quentin Geiser, it was also important to make a gesture for the population.
For its part, the Green Liberal group – The Center also calls for further consolidation of state finances in view of the difficulties that lie ahead. He was particularly concerned about the level of debt. “Its weight could be stifling and an obstacle for years to come”, in the eyes of Green Liberal MP Mireille Tissot-Daguette, while according to her it is necessary to invest in the ecological transition.
The 2024 budget in a few figures
In this 2024 budget, it is planned to draw 13 million francs from the economic policy reserve. This exercise will also be marked by the payment of 10.6 million francs to the municipalities as part of the compromise reached in terms of geotopographic charges. This amount comes, for the next financial year, from the municipal aid fund, but the Council of State has warned that other compensation solutions will have to be found for future years.
This amended budget respects the principle of the debt brake and provides for investments of 119 million francs. The future, however, looks less rosy: deficits of between 77 and 110 million francs are expected between 2025 and 2027. Note also that this budget was the last defended by State Councilor Laurent Kurth who announced his departure from the government for the end of February after 11 years in this position. He will be replaced by Frédéric Mairy from March 1. /ats-sbm
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