Swiss Finance Minister Karin Keller-Sutter.
Keystone-SDA
Generated with artificial intelligence.
The Swiss federal government is expecting a much smaller deficit than forecast. Instead of CHF800 million ($995 million) predicted for 2025, the federal budget deficit is expected to be CHF200 million, mainly due to a rise in tax revenues.
As tax receipts “exceeded expectations” last year, they have been revised upwards by CHF1.5 billion for 2025, the Federal Council said on Wednesday.
Income tax will benefit “strongly” from the additional revenues for 2022 and 2023 from energy and commodities trading companies in Geneva. Some CHF900 million is expected for 2025, according to the government, which points out that this is a “one-off and temporary” phenomenon. At the same time, VAT revenues are expected to fall by CHF200 million.
More
More
Swiss federal accounts CHF2.5 billion better than expected
This content was published on
A deficit of CHF80 million instead of the budgeted CHF2.6 billion: for the first time since the Covid pandemic, the Swiss government has almost balanced its books
Ordinary expenditure is expected to increase by CHF200 million, mainly due to additional appropriations requested during the year. This applies in particular to the CHF666 million envelope approved for participation in the European Union Framework Programme for Research and Innovation, of which Horizon Europe is a part.
This is the first time since the introduction of the debt brake in 2003 that ordinary expenditure could exceed the amount budgeted, according to the government.
More
More
Switzerland budgets CHF666m to rejoin EU research programmes
This content was published on
Rejoining European Union research programmes, such as Horizon Europe, will cost Switzerland an initial sum of CHF666 million.
In the end, the ordinary budget should show a surplus of CHF700 million, instead of the CHF500 million deficit forecast, according to the Federal Council. This represents a difference of CHF1.2 billion.
Savings plan maintained
Despite these positive figures, this does not affect the government’s planned budget savings programme. “This does not alter the fact that, without the implementation of Budget Relief Programme 27, deficits of several billion Swiss francs are expected for the years of the financial plan,” says the finance ministry.
The extraordinary budget has deteriorated. This is due to a one-off payment of CHF850 million to stabilise Swiss Federal Railways finances. Extraordinary income is also expected to be higher than budgeted (CHF200 million), thanks to the additional amount distributed from the Swiss National Bank (SNB’s) profits.
No Trump effect for 2025
According to the Federal Council, the 39% tariff imposed by the United States on imports of Swiss products should not have a “significant” impact on federal finances this year.
It is currently difficult to predict how Swiss companies will react to this situation. However, it is their behaviour that will determine the impact of customs duties next year, particularly on spending linked to short-time work and on VAT revenues. There should also be a delayed impact on the level of federal revenues in the medium term.
Adapted from French by DeepL/sb
We select the most relevant news for an international audience and use automatic translation tools to translate them into English. A journalist then reviews the translation for clarity and accuracy before publication.
Providing you with automatically translated news gives us the time to write more in-depth articles. The news stories we select have been written and carefully fact-checked by an external editorial team from news agencies such as Bloomberg or Keystone.
If you have any questions about how we work, write to us at english@swissinfo.ch.
More
Swiss government leaves door open to construction of new nuclear power plants
This content was published on
The construction of new nuclear power plants in Switzerland should be authorised again, according to the government.
A small two-seater plane crashed into Lake Geneva near Vevey on Tuesday afternoon. The two people on board were able to escape from the submerged aircraft without any injuries.
Swiss National Bank publishes new banknote designs
This content was published on
The Swiss National Bank (SNB) is working on a new series of banknotes on the theme of “Switzerland and its altitudes”. Twelve designs for the new series have been submitted and the public’s opinion is now being sought.
US envoy meets Sudan army chief in Switzerland to discuss peace proposal
This content was published on
Sudan’s army chief Abdel Fattah al-Burhan and US envoy for Africa Massad Boulos met in Switzerland to discuss a US peace plan aimed at ending the civil war in Sudan.
Late Shift [Heldin], a film by about overworked nurses, is Switzerland’s candidate for the Best International Feature Film award at the Oscars next year.
Swiss citizens will also participate in flotilla against Gaza blockade
This content was published on
Swiss citizens are also taking part in the worldwide flotilla that intends to break the sea blockade in Gaza. The Waves of Freedom Association (WOFA) plans to leave with five boats loaded with baby milk powder and water filters.
