Swiss Government Proposes Billions in Savings to Address Growing Deficit
BERN, September 19, 2025 – Teh Swiss Federal Council today transmitted a plan to Parliament outlining notable cost-cutting measures aimed at addressing a looming budget deficit.The proposal calls for savings of 2.4 billion Swiss francs in 2027, escalating to 3 billion francs in both 2028 and 2029. The Council of States will begin reviewing the project during its winter session, with the National Council taking up the matter in the spring.
Federal finances have been strained in recent years, with expenditures outpacing revenue. Projections indicate total spending will reach 98 billion francs by 2029.Despite previous savings efforts in the 2024 and 2025 budgets, structural deficits exceeding 2 billion francs are anticipated to reappear in 2027, potentially surpassing 4 billion francs by 2029.
The Federal Council’s plan,developed after a period of consultation,has been revised downwards from an initial target of 2.7 billion francs in savings for 2027, now settling on 2.4 billion. The program encompasses nearly 60 individual measures. Further savings of 3 billion are targeted for 2028 and 3.1 billion for 2029.
The Confederation itself aims to reduce expenses by 300 million francs by 2028, with at least 190 million francs in savings planned for federal administration personnel and a minimum of 100 million francs stemming from adjustments to commitment conditions.
More than half of the proposed measures require legislative changes, which will be consolidated into a single amending act submitted to Parliament. Measures not requiring legislative action will be presented during budget and financial plan reviews.
Should the proposed reduction measures be rejected or significantly altered, the Federal Council warns that additional budget cuts might potentially be necessary sooner than anticipated, potentially impacting areas such as training, research, advancement cooperation, agriculture, and the army. Cuts in these areas could reach up to 10% to compensate for any shortfall. Protecting the army from cuts would necessitate deeper reductions in other sectors.
The Federal Council emphasized the urgency of the program, stating that without these savings, the Confederation would be forced to finance a rapidly increasing expenditure burden.
