Social spending remains higher than before Covid
Expenditure on social benefits in Switzerland fell by 2% in 2022 compared with the previous year, but remained 6.7% above the pre-Covid level. An all-time high was recorded in 2020 during the pandemic.
The government’s expenditure on social benefits will reach almost CHF208 billion ($240 billion) in 2022, a drop of CHF4.2 billion (2%) compared with 2021, according to the Federal Statistical Office (FSO) in a final overall statement published on Monday. This figure represents 23.2% of GDP.
This fall is mainly due to two distinct factors. On the one hand, the post-Covid economic recovery led to a reduction of CHF7.4 billion in unemployment benefits. On the other, the general rise in prices has reduced the real value of social benefits paid to households, the FSO said in a press release.
+ Swiss government wants spending cuts across the board
This general trend is also observed in the rest of Europe. On the other hand, while health-related benefits fell in most European countries, they rose by 3.2% in Switzerland, to CHF2.1 billion.
The FSO explains this increase by higher spending on compulsory health insurance and more sickness absence from work. Services relating to screening and vaccination, on the other hand, fell back to almost pre-pandemic levels.
Benefits for housing and integration of the most disadvantaged people, including refugees from Ukraine and elsewhere, surged in many Eastern and Southern European countries. In Switzerland, the increase is more modest, with 4.3% for housing assistance and 10.5% for combating social exclusion. However, spending in these areas represents only a marginal proportion (3.5%) of overall social benefits, according to the FSO.
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