The Vaudois Grand Council validated the Canton’s 2025 budget. It was during his session this Tuesday. Session during which he also gave the green light, via his right-wing majority, to a 7% reduction in income tax by 2027.
The Vaudois will be entitled to a 7% tax cut by 2027. The Vaudois Grand Council validated the government’s new tax sheet today. News because the Council of State originally proposed a gradual reduction of 5%. Last week, he finally came behind a 7% UDC proposal. The hope of the Council of State: to block the 12% initiative supported by economic circles and which should be submitted to the people next year.
Even today the left and the Green Liberals tried to oppose the measure, without success. The final verdict: 70 yes, 57 no and 15 abstentions. Disappointment therefore for Romain Pilloud, president of the Vaudois PS and deputy, who however fears even more acceptance of the 12% initiative…
The right was delighted with this 7% drop. Its elected officials largely emphasized during the debates that it was time for the canton to work on its attractiveness. And if the left believes that only targeted measures would favor the middle class, Florence Bettschart Narbel, president of the Vaud PLR and MP, does not share this analysis.
Let us recall the articulation of this tax cut. After a reduction of 3.5% last year, a reduction of 0.5% will be applied this year. A reduction of 1.5% will then apply in 2026 and 2027. This is also a major difference with the government’s initial proposal: the latter did not want to anchor the reductions in 2026 and 2027 in law, but only next year’s decline. The following were subject to the good financial health of the canton. We listen to the State Councilor in charge of finance, Valérie Dittli, on this subject.
The 12% initiative should be submitted to the people this year. If it is accepted, the government will propose to cancel the various tax cuts already applied, according to the big money maker. The final word will go to the Grand Council.
Budget sous toit
The Vaudois Grand Council also took advantage of its Tuesday session to put the Canton’s 2025 budget under wraps. The result of the vote: 98 for, 15 against and 32 abstentions. The deputies’ adjustments reduced the deficit to 280 million francs, instead of the 303 million planned. The main saving, 30 million, is due to the correction of the indexation of public and parapublic services to 0.6%. The deputies also cut corners on water controls. However, they injected 9.5 million in favor of CCT workers in the Vaud parapublic health sector, increased compensation for farmers linked to wolves and increased the remuneration of private curators.
Yesterday, the deputies began and concluded their third debate. Not much has changed since last week… The only change: elected officials have finally decided to cut the entire subsidy to the Avenir Social association. Decision which disappointed State Councilor Vassilis Venizelos.
