Swiss Federal Finances: Deficit Reduction Plan and Impact on Different Sectors

2024-02-15 21:05:18

Published on February 15, 2024 at 10:05 p.m. / Modified on February 15, 2024 at 10:45 p.m.

Federal finances have plunged into the red. The 2023 accounts were closed with a deficit of 1.4 billion francs, for a budget of 80 billion. This trend will worsen to the point that the anticipated deficit for 2027 exceeds 3 billion. Karin Keller-Sutter therefore took out her scissors to bring the accounts back into the black figures. On Wednesday, the Federal Councilor in charge of Finance announced for 2025 a cut of 1.4% which will affect all departments, except defense, declared a national priority, due to the geopolitical situation.

Savings that will really affect everyone? The Swiss Farmers’ Union (USP) responded to Minister PLR’s announcements with a press release which trumpeted: “No question of reducing the agricultural budget!”, following the argument that “agriculture is the only area which does not is not responsible for the imbalance in the federal budget. The 2023 deficit is linked to asylum (+773 million), AVS (+405 million), training (+310 million), aid for reductions in premiums and additional benefits (+260 million) and army (+265 million), Karin Keller-Sutter explained to the press. Last Monday, the USP also submitted to Federal Councilor Guy Parmelin a text signed by 65,000 people to make 5 demands. “Agriculture deserves fair remuneration for its multiple services”, underlined the petition.