Switzerland’s federal government ended 2025 in the black, recording a surplus of CHF 300m, despite having forecast a deficit of CHF 800m. The result is CHF 1.1bn better than expected. Even so, the Federal Council insists that its planned austerity programme remains necessary.
The improvement stems largely from higher-than-anticipated tax receipts from Geneva, Finance Minister Karin Keller-Sutter said on Wednesday. Some of these exceptional revenues will carry over into 2026, though only marginally. After that, it’s over, she told RTS. Without corrective measures, the government expects annual deficits of CHF 2bn to CHF 4bn from 2027 onwards.
Ms Keller-Sutter rejected accusations of alarmism. This is the third consecutive year in which the federal accounts have outperformed expectations. Yet the surplus represents a rounding error in a federal budget of roughly CHF 90bn—the surplus in 2025 is a third of one percent. Spending pressures are mounting, not least from financing a 13th monthly state pension and increased defence expenditure.
Parliament to decide
The minister’s intervention comes on the eve of parliamentary committee debates over the government’s savings package. Parliament is due to consider the politically sensitive plan in March, with a final decision expected by the end of the spring session. That timetable would allow for a possible referendum and public vote before the saving measures take effect in 2027.
The Federal Council will present an updated fiscal outlook in April. It has until mid-2026 to adjust its plans. But Ms Keller-Sutter cautioned that any attempt by parliament to dilute the savings programme would automatically necessitate further cuts elsewhere.
See budget forecast graphic here.
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