Switzerland forecasts budget deficits of 3b francs

Switzerland’s President, Karin Keller-Sutter projects annual budget deficits of around 3 billion Swiss francs ($3.31 billion) in the coming years, citing increased military spending and pension costs, according to an interview with SonntagsZeitung on Sunday.

The neutral nation, traditionally known for balanced budgets, has faced growing deficits since 2020 due to COVID-19-related expenses. The 2024 deficit is forecast at 2.6 billion Swiss francs, official data shows.

Higher pension payments, approved by voters last year despite government warnings of financial strain, are contributing to the deficit. Meanwhile, Switzerland is boosting its defence capabilities in response to the Ukraine war, with investments in fighter jets, missile systems, and cyber-resilient infrastructure.

Attribution: Reuters

Subediting: Y.Yasser