Cantonal finances BS Basel-Stadt expects loss of 25 million francs due to ESC
The Eurovision Song Contest (ESC) is expected to result in a deficit budget of CHF 25 million for the canton of Basel-Stadt in 2025. On Thursday, the government presented an estimate with a surplus of CHF 9 million. However, the costs for the ESC are still missing.
12.09.2024, 10:00
12.09.2024, 12:45
SDA
With expenditure and income of around CHF 5.2 billion each, the canton of Basel-Stadt is expecting a surplus of CHF 9 million, as Finance Director Tanja Soland (SP) told the media.
However, the 2025 budget does not yet include the staging of the ESC in Basel in May. The Grand Council allocated a net CHF 35 million for this on Wednesday. Soland will apply to parliament for a supplementary credit to be included in the 2025 budget. The Grand Council can then make any necessary budget cuts to reduce the anticipated deficit.
The expected deficit of CHF 25 million due to the ESC is slightly unsightly, but unproblematic and easy for the canton to cope with, said Soland. Especially as the ESC is a unique event for Basel. "We are delighted."
The canton of Basel-Stadt is in a good financial position, he continued. Investments would increase significantly, said Soland.
Additional expenditure in the coming year would include the expansion of supplementary childcare with CHF 34 million, the cost-of-living adjustment for wages and various state contributions with CHF 28 million and the European Women's Football Championship 2025 in Basel with CHF 11 million.
Basel-Stadt pays more into the financial equalization scheme
The budget provides for higher payments into the National Fiscal Equalization Scheme (NFA). According to Basel-Stadt's budget, the amount will increase by 25 million to 223 million francs.
Soland expects higher tax revenues in the coming year despite the tax package that has come into force. Profit tax is expected to rise by 92 million and income tax by 43 million. In contrast, wealth tax is expected to decrease by CHF 17 million.
Furthermore, the canton estimates the share of the OECD minimum taxation, which will be recorded for the first time in the 2025 financial year, at CHF 300 million. To cushion this burden for companies, Soland presented a support package in June 2024 to maintain Basel's attractiveness as a business location for large and small companies. A fund of CHF 300 million is to be created for this purpose in 2025. Annual contributions of 150 to 300 million francs are planned. This will be used, for example, to promote innovation or support parental leave that goes beyond the minimum.
Balanced results expected
The canton is budgeting for an average profit distribution from the Swiss National Bank (SNB) of CHF 45 million. In 2025, the canton of Basel-Stadt will also receive a one-off payment of CHF 10 million from the SNB. This money comes from the redemption of the sixth banknote series, which was recalled in 2000. However, not all of the old banknotes have been exchanged yet, which is why the SNB will pay out a share to the cantons.
The financial plan envisages a plus of CHF 51 million for 2026. Soland expects a surplus of CHF 1 million in 2027 and a deficit of CHF 36 million in 2028. The structural surplus that existed in the past has disappeared, said Soland. "We are assuming balanced results."
