Swiss cantons are not equal in terms of their budgets for next year, While some are showing a deficit, others are making a profit. What difference does this make to their residents?
In terms of their 2026 budgets, cantons show significant differences, ranging from large deficits to healthy profits.
This is important information for the cantons’ populations because the bigger financial cushion a given canton has, the more money it will spend on various public services that benefit its residents – for instance, in areas of public education, health insurance subsidies, social aid, education, and culture.
According to Ernst Stocker, president of the Conference of Cantonal Finance Directors, “the cantons are facing different realities and conditions. Differences in economic or demographic structures have an impact on their finances.”
So which cantons will be the ‘wealthiest’ in 2026?
The clear winner is Zug – and its (about) 133,000 residents.
The tiny canton is forecasting the largest profit for 2026, with a surplus of 370 million francs in its coffers.
Of that, 200 million francs will be distributed to the canton’s residents – namely, to cut the health insurance premiums for 2026 and 2027 by 15 percent.
The canton will cover 99 percent of hospital costs for both years.
In concrete terms, a Zug resident paying a 500-franc monthly premium in 2025 will pay 425 francs per month in 2026 and save 900 francs a year.
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Next: Bern, Lucerne, and Aargau
Their residents will benefit from lower taxes.
With a surplus of 365 million, 258 million, and 221 million francs, respectively, all three cantons plan to reduce their taxes, announcing staggered rates from 2027 to 2029.
What about ‘international’ cantons like Zurich, Geneva, and Vaud?
Unfortunately, all three will be in the red in 2026, posting deficits ranging from nearly 410 million francs in Geneva and 331 million in Vaud, to 139 million in Zurich.
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Will the ‘rich’ cantons keep all the money to themselves?
No.
Under Switzerland’s solidarity system of ‘financial equalisation’, wealthy regions will pay a certain amount of money to their poorer cousins.
The reason behind this system is to put the residents of all cantons on an equal financial footing — for instance, a canton whose coffers are full of money, must share its profits with the less fortunate regions.
The system’s goal is to eliminate, or at least reduce, the income disparity between populations of various cantons.
The ‘recipient’ cantons use this money for public-funded programmes such as works on hospitals, schools or roads.
READ ALSO: How much will rich Swiss cantons pay to ‘poorer’ ones — and who benefits?
