‘Financial equalisation’ between Swiss cantons to increase in 2025

Low-tax and wealthy Zug is invariably a net contributor to the Swiss financial equalistion system. Keystone / Urs Flueeler

Redistribution payments between regions will rise by 4.8% to CHF6.2 billion ($6.91 billion) in 2025, the Federal Finance Administration (FFA) said on Tuesday.

According to provisional calculations, annual compensation payments to cantons with low resource potential – the main component of the equalisation scheme – will climb by CHF331 million (7.3%) next year to reach a total of CHF4.8 billion.

Some 60% of the total payments will be financed from federal coffers; richer cantons will provide the other 40%.

+ Read more: how rich cantons subsidise their ‘poorer’ cousins

Of the 26 cantons, Zug will contribute most, with a bill of over CHF431 million. The small central canton is followed by Zurich (CHF419 million), which is the only one of the eight regions paying into the common pot to see its contribution fall (CHF43 million less than in 2024). Geneva will pay CHF253 million (+CHF54 million).

All cantons in French-speaking Switzerland except Geneva are among the 18 beneficiaries of the financial equalisation scheme.

The figures will be approved by government at the end of this year.

Adapted from French by DeepL/dos

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