Cantonal finances GR Canton of Graubünden deliberately budgets a high deficit

The canton of Graubünden is budgeting an unusually high deficit of CHF 90 million for 2025 with expenditure of CHF 2.57 billion. The reasons for the deep red figures are a tax cut for natural persons and a deliberate reduction in the very high level of own funds.

Other reasons for the large deficit are the sharp rise in transfer expenses and record-high gross investments, as the canton announced on Thursday at the presentation of the budget. The deficit will reach "a new dimension next year, which is being deliberately accepted", it said. A deficit of CHF 46.9 million was still budgeted for 2024.

Based on decisions by the Grand Council, from 2025 the canton will use the equity that has been growing for years to compensate for the 5 percent reduction in the tax rate. It will also be used for temporarily high investment contributions and for shortfalls in profit distributions from the National Bank. In 2023, equity had grown by CHF 122.7 million to CHF 858 million.