Zug,21.06.2018

Canton's contribution to Equalisation Fund to rise by CHF 17 million next year

It has been announced that, next year, the canton’s contribution to the National Equalisation Fund (NFA) is to rise by CHF 17 million to CHF 329.4 million. This is the equivalent to each resident of the canton paying CHF 2,727. The purpose of the NFA is to insure wealth is spread around the country, rather than be concentrated in a few areas.

The latest figures showing what the donor cantons are to contribute and the benefiting cantons are to receive was published on Tuesday by the Federal Office of Finance Administration (EF).

The total payments for next year involve a sum of CHF 5.2 billion, up by CHF 132 million on this year, with CHF 1.8 billion coming from the cantons, the rest from the Swiss state.

The largest contribution, CHF 490 million, is to be paid by the canton of Zurich, with Zug paying the second largest contribution, CHF 329.4 million, as mentioned. Geneva is the third largest contributor at CHF 299.8 million.

The remaining donor cantons are Schwyz at CHF 199.3 million, the City of Basel at CHF 125 million, followed by Nidwalden and Obwalden at CHF 45.5 million and CHF 7.5 million respectively.

All the other 19 cantons (half-cantons in the case of Appenzell-Innerrhoden and Appenzell-Ausserrhoden) benefit from the fund, the canton of Bern benefiting the most by far at CHF 1,187 billion, though this is CHF 85.4 million less than the amount it received this year. Other cantons which benefit greatly, too, are Wallis (to the tune of CHF 730.2 million) and St Gallen (to the tune of CHF 468.3 million). Individual cantons have a few months in which to comment on these allocations but, as a rule, little is changed.

It is only natural that those cantons which donate to it complain about the amounts levied and call for reforms in the way they are worked out. Indeed, Eva Herzog, the director of finance of Basel, who presides the Conference of Donating Cantons, said that these latest figures published by the EF showed how urgent such reforms were. 

The Federal Council is in fact working on reforms leading to the donating cantons having to pay less, though these are not expected to come into force until 2020.