Federal finances
An overview of the federal budget and the financial outlook for the years ahead.
Brief summary
The federal budgetary situation has eased in the short term. Following financing deficits between 2020 and 2024, there was a balanced result for 2025. Receipts from direct federal tax on legal entities (profit tax) showed a particularly encouraging trend. Temporary increased receipts from the canton of Geneva reinforced this trend.
In the current year, 2026, profit tax receipts are again expected to improve the result substantially. The first extrapolation for 2026 shows a financing surplus of just under CHF 0.8 billion. A deficit of just over CHF 0.7 billion had been budgeted. On the expenditure side, more is likely to be invested in defence than originally planned.
For 2027, the Federal Council has budgeted for a financing deficit of CHF 0.1 billion. However, thanks to the relief package 27 and higher expected receipts, the budget meets the requirements of the debt brake and shows a structural surplus of around CHF 180 million. The relief package 27 will ease the burden on the federal budget by around CHF 1.4 billion in 2027 and by just under CHF 2 billion annually from 2028 onwards.
The strong growth in expenditure poses challenges for the federal budget in the medium term. Expenditure will continue to grow strongly in the coming years: from around CHF 90 billion at present to over CHF 104 billion in 2030. The main drivers are rising expenditure on the Armed Forces, the old-age and survivors' insurance and fiscal equalization. Despite the upward revision of the estimate for receipts, a need for adjustment is therefore likely to arise again from 2030 onwards.
Who decides on federal expenditure?
In the middle of each year, the Federal Council prepares a draft budget for the year ahead. This includes all planned expenditure and receipts. This budget is subject to the debt brake, which means that the Confederation may not incur any new debt and must keep its expenditure and receipts balanced, although exceptions are possible. The Federal Council submits its proposal to Parliament. As Parliament has budgetary sovereignty, it has the final say on financing decisions. During the winter session, Parliament discusses the budget with integrated task and financial plan (ITFP), which contains the outlook for the budget year and the subsequent three years.
What are federal receipts derived from?
In 2027, the Confederation expects ordinary receipts of CHF 93.3 billion. This represents a 3.7% increase on the previous year’s budget. The most important source of receipts is the direct federal tax levied on natural persons (private individuals) and legal entities (companies). The second-largest source is VAT, which is levied on services and goods purchased. Further key sources of receipts include other consumption taxes, such as mineral oil tax and tobacco duty, and withholding tax, which is levied mainly on dividends and interest.
More information on federal receipts
What are the Confederation's main expenditure items?
The Confederation's ordinary expenditure is estimated at CHF 93.8 billion in the 2027 budget. This is 3.5% more than the previous year. Social welfare was the largest task area, followed by finances and taxes (which includes, amongst other things, the cantons' shares of direct federal tax) and transportation. For the first time in seven years, no extraordinary expenditure is budgeted for 2027. Such expenditure was incurred in particular to tackle the COVID-19 pandemic and for people from Ukraine seeking protection.
More information on federal expenditure
Where does my tax money go?
In Switzerland, taxes are levied by the federal government, the cantons and the communes. Swiss federalism also characterises the country's tax system. All of the 26 cantons have their own tax laws and levy very different taxes on income, assets, inheritance and other tax items. At federal level, taxes are generally not earmarked, i.e. they go to the general federal coffers to finance all subsidies, infrastructures and services that are essential for the smooth functioning of society, such as social welfare, health and security.
Exceptions include restricted receipts, such as the percentage of VAT to finance old-age and survivors' insurance (AHV), and much of the mineral oil tax and transportation levies (heavy vehicle charge, automobile duty, vignette), which go to the motorway and urban transportation fund.
What is the Federal Council doing to balance the federal budget in the long term?
The Federal Council wishes to prevent structural deficits, comply with the debt brake and bring the federal budget into balance in the medium term. To this end, it already introduced cost-saving measures in the 2024 and 2025 budgets and has put together relief package 27. With relief package 27, the Federal Assembly approved savings of around CHF 1.4 billion in 2027, CHF 1.9 billion in 2028 and just under CHF 2 billion in 2029. Together with higher projected receipts, these measures will, as things stand today, enable the debt brake requirements to be met until 2029. A slight structural financing deficit is emerging for 2030.
Dossiers of the relevant office
Index
Press releases on the topic
Publication of state financial statements for 2025
As of 23 March 2026, the state financial statements for 2025 are available in electronic format on the website of the Federal Finance Administration (FFA). The figures are also available in the federal budget data portal. The hard copy will be released on 14 April 2026. The Federal Treasury activity report is published to complement the state financial statements.
Federal Council approves addendum I to 2026 budget
During its meeting on 13 March 2026, the Federal Council approved a total of four supplementary credits. It is thus requesting additional expenditure of CHF 98 million for this year. Most of these funds will go towards EU research and innovation programmes. A portion of the supplementary credits will be offset on the expenditure side.
Federal balance to be balanced in 2025 – but relief package 27 still necessary
The Confederation ended 2025 with a financing surplus of CHF 0.3 billion. The improvement relative to the budget is primarily attributable to a temporary increase in receipts from the canton of Geneva. The Federal Council was informed of this provisional result during its meeting on 18 February 2026. At the same time, it launched work on the next budget. Despite the balanced financial result, the federal finances remain tight: structural deficits can still be expected for 2027 to 2029, even with relief package 27 and the planned VAT increase for the Armed Forces and security. Without these measures, the deficits from 2027 onwards would amount to between CHF 2 and 4 billion.
Federal Finance Administration FFA
Switzerland - 3003 Bern