Government shelves spending cuts

The government has put on hold a wide-ranging programme of spending cuts worth SFr280 million ($290.4 million) in the light of unexpected extra revenue.

Finance Minister Eveline Widmer-Schlumpf said the government could hope for a surplus of nearly SFr3 billion for 2010 instead of the projected deficit of about SFr2 billion.

Planned spending cuts in some 50 areas will be shelved, including public transport, Switzerland’s consular network, the budget of swissinfo.ch, science and research, school daycare services and the federal stud.

However, Widmer-Schlumpf insisted that a long-term review of government spending was still necessary to balance the federal budget.

The main political parties gave a mixed reaction to the decision, with the centre-left Social Democrats and the centre-right Christian Democrats welcoming the move while the rightwing People’s Party voiced concern.

The Senate is due to discuss government finances in the spring session.