Budget deficit SFr1.2 billion lower than expected

The deficit in the Swiss federal budget has come out much lower than forecast. The finance minister, Kaspar Villiger (pictured), welcomed the improved position but warned against being complacent.

The deficit in the Swiss federal budget has come out much lower than forecast. The finance minister, Kaspar Villiger (pictured), welcomed the improved position but warned against being complacent.

The deficit for 1999 was SFr2.7 billion, instead of the SFr3.9 billion which had been predicted.

The finance ministry ascribed the improvement to the growth in the economy, the drop in unemployment and a budget stabilisation programme launched in 1998. It added that the lower deficit was a sign that the federation was on course to achieving a balanced budget.

Villiger said eliminating the deficit would only be possible if budget discipline was maintained and the economy continued growing.

Last year’s federal expenditure was SFr45.7 billion, while income was SFr43 billion.

From staff and wire reports