I was looking around [admin.ch](https://admin.ch), and came across [the summary of the budget plans for the next few years](https://www.efv.admin.ch/efv/de/home/finanzberichterstattung/bundeshaushalt_ueb.html). Of course, the government ran large deficits during 2020 and 2021. However, they apparently intend to continue with deficit spending for the foreseeable future – this, even though the Swiss economy is currently doing quite well.
I’m no economic expert, so perhaps someone can explain: how can this be reconciled with the [Swiss debt brake](https://www.efd.admin.ch/efd/en/home/finanzpolitik/the-debt-brake.html), which is intended to force balanced budgets over the long term?
3 comments
The Swiss economy is still not operating at full capacity, which is why the debt brake still allows for a deficit this year. In addition, many current expenditures are of an extraordinary nature, for example expenditures related to Covid. This means that they can be counted in a different way. As far as I know, the budget for 2024 and the following years still has to be reduced in order to comply with the debt brake.
For 2023 it’s mostly the expenditures for the refugees that are extraordinary. As for 2024 and onwards @tinuuuu is quite right, that the federal council will have to cut some expenditures. These decisions shall be reached in Q1 2023.
Because the parlament wants to spend money on all ends and no one is there to stop them. Damn thieves!