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Covid pandemic causes massive state deficit in 2020

Railway worker and freight trains
The state-run Federal Railways posted a record deficit of more than CHF600 million last year. Keystone/Martin Ruetschi

The Swiss government has run up a deficit of CHF14.2 billion ($15.4 billion), according to its consolidated financial statement for last year.

This negative result is largely due to the impact of the crisis triggered by the Covid-19 pandemic, according to a statement publishedExternal link on Wednesday.

The consolidated statement includes the assets, liabilities, equity, income, expenses and cash flows of the federal administration as well as the state-run companies and social security agencies.

The result for 2020 is down CHF25.4 billion on the previous year.

Last year the federal administration closed with a deficit of CHF16.4 billion, notably because of extra spending to cope with the Covid crisis and lower revenue, the finance ministry said.

Equity dropped by more than CHF11 billion to CHF66.3 billion.

In 2020, there were nearly 161,300 full-time employment posts in the government administration, state-run companies such as the national railways and Post Office, and the old age and disability insurance funds.

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