The government has considerably narrowed its projected deficit for 2023 to CHF1.5 billion ($1.71 billion) after – among other things – scrapping a CHF4 billion rescue mechanism for the electricity industry from spending estimates.
The government had said in June it expected a deficit of CHF4.8 billion for 2023 and CHF6.7 billion for 2024, largely due to extraordinary spending on Ukrainian refugees and the electricity sector.
On Wednesday, it cut its estimate for extraordinary expenditures by CHF4.5 billion, notably saying that a rescue mechanism for the electricity industry would “not be needed as things currently stand”.
It also cut its budgeted welfare spending on refugees from Ukraine by more than a third, saying it now expected some 66,000 arrivals from Ukraine for the year, down from the 100,000 accounted for in its budget.
Other boosts to the public coffers include the gradual selling off of the Ruag defence contractor and a CHF61 million windfall due to risk premiums linked to the massive state backing for the UBS takeover of Credit Suisse.
However, the government said, due to there being no profit redistribution by the Swiss National Bank this year – the bank made record losses of CHF132 billion last year – a CHF2 billion drop in receipts was recorded by the federal authorities.