Solidarity with the other cantons costs CHF 2,864 per head in Zug

The National Financial Equalisation System is costing the Canton of Zug more and more. One reason for this, among other things, is that the revenues are increasing rapidly. But isn't this high levy on the financial resources of the canton too much of an interference with cantonal financial sovereignty?

The canton of Zug has to pay CHF 366 million into the pot of the National Fiscal Equalisation (NFA) next year – and this equates to CHF 2,864 francs per person in the canton. And that's a record value. The canton of Zug is, of course, to some extent to blame that it now has to transfer this money to the NFA. The basis for the assessment for this is the events of the years 2017 up to and including 2019. And the canton of Zug was doing extremely well on the revenue side. A record high, in fact.

Nevertheless, an uneasy feeling arises when you look at the exorbitantly good result of 2021, as well as the expected excellent results of the coming years: the cost of the NFA for Zug is likely to increase further. A forecast by the BAK Basel estimates the annual NFA contribution of Zug at a good CHF 400 million in around six years' time.

Federalism is a good thing. The principle confers far-reaching powers on cantons and municipalities, including in terms of finance. In this respect, the NFA plays an important role. Financially strong cantons thereby support financially weak ones. In this regard, however, it could be asked whether the current NFA, which was already revised in 2020 to relieve the donor cantons, is not too much of an interference with cantonal financial sovereignty, especially in the canton of Zug.

Solidarity should not be overplayed, however. Otherwise, people will quietly become increasingly angry, and the polarisation at the regulars' table (Stammtisch) and the dissatisfaction with politicians will increase. And, in the end, there's the risk of the whole thing falling apart. Nobody wants to have to sweep it all up.

It is therefore probably time again to subject the mechanics of the NFA to a critical review. It really benefits no one if the few donor cantons are burdened more and more, and risk being bled to death. The federalism system guarantees help to the weak. But where will this help come from if the currently strong should one day also become weak?