2023-09-27 13:10:00
The canton of Neuchâtel views the financial year 2024 favorably. The state budget presents a revenue surplus of 10.8 million francs. A result which can be explained in particular by tax revenues which are increasing under the effect of the good economic situation and the fall in unemployment. The Council of State will propose a reduction in personal taxation to parliament for 2024.
A little over 100 million francs of investments are planned, or 4.5% of revenues. The government explains that this financial program was established in a context of high economic times. However, this budget must also respond to the migration and energy crises. It must also address other major challenges that have a “significant impact on public finances”, particularly “in the area of health”. In terms of the fight once morest inflation, the Council of State indicates that the budget provides for compensation for the increase recorded between May 2022 and May 2023 in public sector salaries.
Geotopographic loads: lasting solutions remain to be found
Another challenge to face is the distribution of financial flows between the State and the municipalities. The government has included a new expenditure of 10.6 million francs for the redistribution to municipalities of half of the federal contribution to compensate for geotopographic overloads. This decision was taken in view of “the state of ongoing discussions” with the municipalities. But the government points out that this transfer is not sustainable for cantonal finances: lasting compensation will have to be found. Reason why the 2024 budget includes an equivalent levy (10.6 million) from the municipal aid fund. An operation which cannot be repeated given the level of the fund’s assets.
Concerns for the future
The 2025-2027 financial plan presents significant deficits. The sinkholes envisaged range between 77 and 110 million. To try to contain these deficits, the government is calling for austerity and additional efforts over the coming years; “imperative condition to be able to calmly envisage the future of the canton”.
Lower taxes
The Council of State will very soon present a proposal to reduce taxes to the Grand Council. The executive proposes to allocate part of the growth in revenue to a 1% reduction in the tax burden in 2024. Neuchâtel residents will therefore pay less taxes. A further reduction of 1% might be proposed in 2025, provided, in particular, that the economic situation is right. /aju
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