The Swiss government expects a budget deficit of CHF2.5 billion ($2.7 billion) next year, owing to more measures to deal with the coronavirus crisis.This content was published on September 25, 2020 - 14:48
Government and parliament have in recent weeks approved additional measures likely to cost Switzerland CHF1.4 billion next year, according to a government press releaseExternal link on Friday. It says that “given the continuing restrictions and the still uncertain outlook, further support measures to tackle the Covid-19 pandemic are planned for 2021”.
These include support for public transport (CHF514 million), loss of earnings compensation (CHF490 million) and financial assistance to the cultural sector (CHF130 million), as well as CHF250 million for re-capitalisation of Swiss air traffic controller Skyguide.
Budgeted expenditure for 2021 is now CHF78.3 billion, up 3.9% compared with the 2020 budget, which is due “almost exclusively to Covid-19-related expenditure”.
Despite the expected deficit, the government said “the requirements of the debt brake would be met”.
Swiss voters approved a so-called “debt brake” on federal public finances (which requires federal spending to be linked to revenues in the budget process) in 2001. It was put into operation in 2003.