Editor in chief at IamExpat Media
For the first time since 2019, the Swiss federal government has almost balanced its books, ending 2024 with a total budget deficit of 80 million francs, more than 2,5 billion Swiss francs lower than what was forecast.
Compared to 2023, the Swiss government’s revenue and expenditure both increased sharply, the Federal Department of Finance reported in a press release, with revenue rising by 5,8 percent, outpacing the 4-percent rise in expenditure.
Switzerland closed out the year with a budget surplus of more than 800 million francs, bringing the government’s total deficit down to 80 million francs. This is the first time since the coronavirus pandemic that the deficit has been lower than 1 billion francs, and over 2,5 billion francs lower than the originally forecast deficit of over 2,6 billion francs.
In the press release, the government cited lower extraordinary expenditure - such as a postponed subsidy earmarked for the Swiss Federal Railways - as a reason for the 2024 surplus, as well as higher-than-expected revenue from federal taxes.
With work now underway to prepare the 2026 budget, the Federal Council said that the welcome 2024 figures mean “no additional cuts are likely to be necessary for the 2026 budget”. The Federal Council has made numerous, permanent cuts to public services in recent years.
However, it said that the increase in taxation revenue was down to temporary factors “and is therefore not sustainable”. It reiterated that the relief package known as Entlastungspaket 27 - which was submitted for consultation at the end of January - is necessary to secure Switzerland’s finances in 2027 and 2028.
The package cuts federal spending by up to 4,5 billion francs a year, and includes measures like scrapping federal funding for childcare in Switzerland, reforming the 1st pillar pension, increasing taxes on second and third pillar pensions and cutting railway funding.
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