Swiss Finance Minister Karin Keller-Sutter.
Keystone-SDA
Further cuts to the federal budget will not be needed in 2027, Switzerland’s Federal Council (executive body) said on Wednesday. It announced that revenue is CHF1.8 billion ($2.2 billion) higher than had been estimated in February. But the 2027–2029 austerity programme will still go ahead as planned.
In April, the government had announced additional cuts of CHF540 million as a precautionary measure. These had been decided upon because the relief package had ultimately proved less stringent than expected following its passage through parliament.
It is possible to abandon these measures given that the budgetary situation for 2027 is “significantly better” than expected, the Federal Council said in a statement on Wednesday. The upward revision of forecasts relating to corporation tax explains this more optimistic assessment.
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The outlook for 2028–2030 also looks brighter. However, the Federal Council states that the austerity programme remains “crucial”. The planned cuts amount to around CHF5.2 billion. Without these measures, the 2027 budget would show a structural deficit of around CHF1.3 billion.
Translated from French, sub-edited by sb
