For the first time since 2005, the government closed last year with a higher deficit than would have been permissible for economic reasons. The deficit amounts to CHF1.6 billion (CHF1.7 billion).
Speaking at a news conference on Wednesday, Keller-Sutter said the government agreed that measures are necessary as the outlook remains bleak.
“As the new finance minister, I cannot present you with a surplus, quite the contrary,” Keller-Sutter said.
In addition to the higher than budgeted extraordinary expenditures due to the Corona pandemic (CHF3.3 billion) and the Russian invasion of Ukraine (CHF0.7 billion), the deficit in 2022 was also much higher than estimated in the ordinary budget.
One reason was significantly lower income from withholding tax.
Across the board
The financing deficit in 2022 was CHF4.3 billion. But the shortfall only has to be compensated for in subsequent years with spending cuts.
The budget figures updated at the end of January show a structural deficit of CHF2 billion for 2024, Keller-Sutter said. Compliance with the debt brake is central, she added. “Our stable fiscal policy has allowed us to weather various crises.”
In a first step announced last month, the mandatory financial contribution to the prestigious Horizon Europe research programme is to be cut from the budget, while army expenditure will be increased and tax brakes for electric vehicles will be suspended.
The remaining funding deficit of about CHF500 million is to eliminated with across-the-board spending cuts, including job losses. Spending on education, research, security (but not the armed forces), foreign relations and agriculture are also likely.
Some CHF600 million are to be saved by spending cuts for social welfare, finances and transport.
“These measures are certainly painful, but necessary,” Keller-Sutter said. Overall, the government’s ordinary expenditure would grow by around 3% in 2024 despite these adjustment measures.
It’s up to parliament to set priorities, according to Keller-Sutter.
Popular Stories
More
Demographics
Flat-hunting in Switzerland’s cheapest and most expensive municipalities
Train vs plane: would you take a direct train between London and Geneva?
Eurostar is planning to run direct trains from Britain to Germany and Switzerland from the early 2030s. Would you favour the train over the plane? If not, why not?
This content was published on
Emergency crews contained the oil and began removing some of the pollution from the water’s surface, said the St Gallen cantonal police on Sunday.
Switzerland lifts sanctions on Syria after Assad’s fall
This content was published on
Switzerland is lifting economic sanctions on Syria, but targeted measures against figures linked to the former regime remain in place.
Thousands march in Bern calling for Gaza ceasefire
This content was published on
More than 10,000 people – or up to 20,000, according to organisers – marched through central Bern on Saturday afternoon in support for Gaza.
Zurich Pride draws large crowds amid financial strain
This content was published on
Following US President Donald Trump’s attacks on diversity initiatives, Zurich Pride fears more sponsors could pull out and is now facing financial difficulties.
Switzerland ‘deeply alarmed’ by Middle East escalation
This content was published on
Switzerland has voiced serious concern over rising tensions in the Middle East, and the UN chief says he is ‘alarmed’ by US strikes on Iran.
Switzerland among world’s most expensive for household electricity
This content was published on
According to a study by the comparison site Verivox, based on data from Global Petrol Prices, Switzerland came in tenth out of 143 countries.
Global uncertainty boosts Swiss-EU talks, says Cassis
This content was published on
Swiss Foreign Minister Ignazio Cassis says Switzerland’s talks with the European Union (EU) have been boosted by the current difficult global situation.
This content was published on
The government has revealed its savings ideas for the 2024 budget, including a smaller than planned boost in military spending.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.