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Government moots more spending cuts to reduce deficit

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Government funds for childcare and unemployment benefits may be cut from 2025. © Keystone / Ti-press / Alessandro Crinari

The Swiss government plans additional savings of up to CHF700 million ($762.8 million) to rein in public spending.

The proposed cuts focus on the state unemployment insurance scheme, contributions to the national railway infrastructure and plans to boost childcare facilities, including creches.

They could take effect from 2025 and be limited in time.

However, an annual deficit of CHF300 to CHF400 million is likely despite the additional cuts , according to a  government statement published on Wednesday.

It also expects higher spending for old age pensions, social benefits as well as childcare schemes. 

A bill to be discussed by parliament will be presented in June.

The government has already agreed cuts of up to CHF2 billion earlier in the year.

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