‘Financial equalisation’ between Swiss cantons to increase in 2025

by
Swissinfo
My articles My siteAbout meMy videosMy books
Follow on:TwitterFacebookGoogle +

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

About Swissinfo

SWI swissinfo.ch – the international service of the Swiss Broadcasting Corporation (SBC). Since 1999, swissinfo.ch has fulfilled the federal government’s mandate to distribute information about Switzerland internationally, supplementing the online offerings of the radio and television stations of the SBC. Today, the international service is directed above all at an international audience interested in Switzerland, as well as at Swiss citizens living abroad.

My articlesMy siteAbout meMy books
Follow on:TwitterFacebookGoogle +

You Might Also Like

Ticino approves lower taxes for the wealthy

2024-06-09

High incomes in the Swiss canton of Ticino will in future benefit from tax relief. A corresponding amendment to the law was approved by voters on Sunday. Compensatory measures for planned pension cuts for cantonal employees were also approved.