Swiss aid for Kosovo impacts federal budget

Switzerland’s aid for Kosovo will cost the Swiss government millions more than originally budgeted, but it remains unclear whether the forecast budget deficit of SFr3.9 million ($2.6 million) will balloon because of the unexpected humanitarian spending.

Switzerland’s refugee and humanitarian aid for Kosovo will cost the Swiss government millions more than originally budgeted, but it remains unclear whether the forecast budget deficit of SFr3.9 million ($2.6 million) will balloon because of the unexpected humanitarian spending.

The Swiss Finance Ministry said Friday that, in light of the “extraordinary events in Kosovo,” parliament would likely have to pass millions more to pay for asylum and refugee costs.

The Federal Refugee Office has already called for an additional slice of SFr250 million ($166.6 million) to cover costs caused by the thousands of people who have applied for asylum in Switzerland.

Apart from Germany, Switzerland took in the highest number of Kosovar refugees in Europe. About 250 refugees were applying for asylum each day now, the refugee office said Friday. This was down from the 300 to 400 people who filed for asylum in June.

Political analysts say it is impossible to say how parliamentarians will respond to the demands for more funds but the finance ministry has said there will simply be no alternative to approving additional financial contributions.

The financial impact of the Kosovo crisis on the Swiss federal budget may, however, turn out to be less than some people expected.

Experts now believe that tax and other revenues flowing into the government coffers will exceed the predicted SFr38.9 billion ($26 billion) this year, and this could leave the government in a slightly better position than expected.


From staff and wire reports.