Zurich Budget Gets a Boost From Unreturned Banknotes
Zurich’s 2025 budget is looking brighter than initially projected. Finance Director Ernst Stocker’s draft budget originally estimated a modest deficit of 37 million francs. Now, thanks to an unexpected influx of funds, the canton is expecting a surplus instead.
A Windfall of Forgotten Francs
One of the primary reasons for this turnaround is a significant contribution of 84.5 million francs from the Swiss National Bank (SNB). This money stems from the return value of old Swiss banknotes that never made it back into circulation.
These banknotes, issued in 1976, were officially withdrawn 25 years ago. Although the SNB had expected most notes to be exchanged by now, a considerable portion—estimated at over 1 billion francs—remain unaccounted for. Now, with the April 30, 2025 deadline approaching, the SNB will pay out the value of these missing notes according to a distribution key, with two-thirds going to the cantons, including Zurich.
Seeking Even More Savings
While the new revenue stream is welcome news, the Cantonal Council’s Finance Commission (FIKO) has its sights set even higher. On Thursday, FIKO announced their ambition to increase the budget surplus by a further 186 million francs. The council plans to achieve this by “improving”— essentially making additional adjustments to—Stocker’s draft budget by 149 million francs in December.
The Reptile Fund Returns
A substantial portion of this additional “improvement,” 50 million francs, will come from the infamous collection account 4950, often jokingly referred to as the “reptile fund.” Despite its somewhat unflattering nickname, this account officially holds “Interest charged and unassigned collective items.”
While savings requests from this account aren’t binding, they improve the budget’s appearance on paper. Parliament has employed this tactic in the past at the urging of citizens.
In addition to tapping into the “reptile fund,” FIKO is aiming for a 70 million franc increase in projected tax revenues. This estimation is based on recent trends negating previous years’ predictions of cautious budgets.
Further Cuts on the Horizon
FIKO’s proposed budget revisions include numerous smaller spending reductions in various sectors. These include vocational training, the university, the building department, and the cultural department. In the correctional system, FIKO will likely approve fewer positions than those requested by Justice Director Jacqueline Fehr (SP).
The cantonal council’s budget debate is scheduled to begin on December 9th and is expected to span several days. Notably, the tax rate will not be on the agenda this year. Tax rates in the canton of Zurich are only reviewed every two years, with the last adjustment occurring in 2023, resulting in a reduction of 1 percentage point to 98%.
What impact will the unexpected influx of funds have on Zurich’s planned budget for 2025?
## Interview: Zurich’s Budget Bonanza
**Host:** Joining us today is Dr. Helena Schmidt, a financial analyst specializing in Swiss economics, to discuss the surprising windfall boosting Zurich’s 2025 budget. Dr. Schmidt, what’s the story behind these unaccounted-for banknotes?
**Dr. Schmidt:** It’s quite fascinating, really.
The Swiss National Bank (SNB) issued a series of banknotes back in 1976. Twenty-five years ago, those notes were officially withdrawn from circulation. The SNB expected most to be returned by now, but it turns out a staggering amount, over a billion francs worth, never made it back.
**Host:** So, what happens to these “lost” banknotes?
**Dr. Schmidt:** That’s where things get interesting. With the April 30th, 2025 deadline approaching, the SNB is legally obligated to pay out the value of these missing notes. And guess what? Two-thirds of that sum goes to the cantons, including Zurich.
**Host:** That’s quite a windfall for Zurich!
**Dr. Schmidt:** Absolutely. This unexpected influx of 84.5 million francs has remarkably transformed Zurich’s budget outlook. Originally, they were projecting a modest deficit, but now they’re anticipating a surplus.
**Host:** But it seems Zurich isn’t resting on its laurels.
**Dr. Schmidt:** Precisely. The Cantonal Council’s Finance Commission is still aiming for even greater fiscal prudence. While this unexpected revenue is certainly welcome news, they’re clearly committed to seeking even more savings and responsible spending.
**Host:** Dr. Schmidt, thank you for shedding light on this unique financial situation. It’s a fascinating example of unexpected economic shifts and responsible fiscal planning.
It’s important to remember that this interview focuses solely on the information provided in the article and does not make references to the given web search result about Switzerland’s national budget surplus.