the Confederation records a deficit of 12.2 billion in 2021

The Covid-19 pandemic is once once more weighing on the Confederation’s accounts. The 2021 financial year ended with a deficit of 12.2 billion francs, the Federal Council announced on Wednesday.

The deficit is twice what was budgeted. The Confederation has spent 14 billion francs to curb the pandemic, 12.3 of which as extraordinary expenditure.

The Swiss National Bank (SNB) contributed 700,000 francs more than a year earlier. It also paid an amount of 1.3 billion as extraordinary revenue. This amount will be used to reduce debt related to the coronavirus.

Health expenditure

Spending was also higher in 2021 (+0.5%). They are mainly linked to measures to stem the pandemic, recalls the Federal Council.

The Confederation spent 4.3 billion on compensation for reduced working hours. Aid for hardship cases cost 4.2 billion and allowances for loss of earnings linked to Covid-19 1.8 billion.

Compared to 2020, expenses related to the pandemic fell slightly (-900,000 francs). Some $1.4 billion more was funded from the regular budget.

Debt refund

The Confederation’s debt amounts to 109 billion francs. The amortization account overdraft will increase from 25 to 30 billion by the end of the year. In accordance with the Finance Act, it must be filled. To avoid a tax increase or a savings program, the Federal Council proposes to modify the law. He will deliver his message to Parliament in March.

For 2023, the budgetary situation should return to normal. There should be no more extraordinary expenses related to the pandemic. The Federal Council foresees a surplus of 600,000 francs in the budget.