The Federal Council adopted the figures for the 2025 budget and the 2026–2028 financial plan on Wednesday. It forecasts a deficit of 700 million francs, slightly less than the previous budget. However, the situation could deteriorate from 2027.
Thanks to the cost-cutting measures decided at the beginning of the year and the upward revision of revenues, for an amount of more than two billion francs, the budgetary situation has slightly improved for the years 2025 and 2026 compared to previous forecasts, notes the government.
A deficit of 700 million francs is budgeted for 2025. Extraordinary funds are in fact required to cover part of the expenses for Ukrainian refugees. “We do not have a problem of revenue, but of expenditure,” said Finance Minister Karin Keller-Sutter at a press conference.
Spending on the military and climate
Between the start of the year and the month of May, the Confederation actually recorded an increase in revenue from income tax and profit tax. Estimated at 85.7 billion, the Confederation’s total revenues included in the 2025 budget are up 3.2% compared to the 2024 budget.
The budgeted expenditure for 2025 amounts to 86.4 billion francs. They are notably devoted to financing the increase in army spending, which must increase to 1% of GDP by 2035, and climate policy. New incentive measures are thus planned in connection with the climate law and the CO2 law.
For the Minister of Finance, the savings measures have had “a certain impact, but not a lasting one”. It is only thanks to the extraordinary accounting of certain expenses, such as the reception of Ukrainian refugees, that the Federal Council can present a budget that meets the requirements of the debt brake.
Regional promotion thanks to OECD tax
Forecasts have improved for 2026. Part of the expenditure intended for the field of migration will still be included in the extraordinary budget, while revenues should experience a more encouraging development than expected.
The Federal Council has decided to allocate the additional revenues from the OECD minimum corporate tax to new regional promotion measures, already budgeted for. These revenues, estimated at 400 million francs, will be allocated from 2026 to the digital transformation of public administration, the decarbonization of businesses and the financing of growth in the field of training, research and innovation. .
But according to Karin Keller-Sutter, the outlook is getting darker for 2027. Deficits are likely to reach around 2.5 billion francs, due to significant additional costs linked to the army, the 13th AVS pension and relationships. with the European Union (Horizon program for research, contribution to cohesion, etc.).
ats/jop
