Municipal finances 2023 Aargau municipalities generate a surplus of 106 million francs

126 out of 198 municipalities in Aargau closed their accounts with a surplus in 2023. Although net assets stagnated, the financial situation of most municipalities is positive and robust, according to the canton.

The CHF 147 million surplus of 126 municipalities contrasts with 63 municipalities with a combined loss of CHF 41 million, as announced by the Department of Economic Affairs and Home Affairs (DVI) on Thursday. The accounts of 9 municipalities were balanced. This does not include areas financed by fees such as water, wastewater and waste.

Although the net revenue surplus of 106 million francs is a pleasing figure, it is a decline and less than half of the previous year's surplus. Only 34 municipalities reported a loss for 2022, according to the DVI.

Disproportionate increase in expenditure

As in the previous year, the municipalities' net expenditure rose sharply, according to the report. The increase amounted to 5.3 percent, with the areas of health and the environment growing the most in relative terms. Tax revenue was around 6 percent above the budgeted figure, but with an increase of 2.3 percent, it was unable to keep pace with the growth in expenditure.

Bleak prospects?

Investments also increased last year to around 350 million francs. From 2016 to 2022, annual investments fell continuously from a good CHF 400 million to a good CHF 300 million, according to the DVI.

The net assets of all municipalities in Aargau currently stand at around CHF 90 million. The municipalities in the canton are on a strong and stable financial footing, the DVI notes. However, if net expenditure continues to grow faster than tax income and the need for investment increases at the same time, "the outlook could become gloomier".

SDA