Fierce exchange of blows expected Budget dispute in the Federal Parliament begins - where will the millions go?

More tax revenue from Geneva will give the federal government a little more breathing space in the 2026 budget. But instead of calm, this will only bring new conflicts: the councils are arguing about whether the additional money should go to the army, unemployment insurance, agriculture - or to debt reduction.

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19.11.2025, 12:23

02.12.2025, 09:30

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9.29 a.m.

""The end of the world in terms of financial policy has not occurred"

On the conservative side, there were words of warning. The budget is "a brief brightening before a low pressure area in the coming years", said Jakob Stark (SVP/TG), President of the Finance Committee, at the start of the debate.

The Finance Committee is requesting that CHF 70 million be brought forward for armaments expenditure, said Stark. However, a further acceleration of army armament than already decided would have to be financed extraordinarily.

Peter Hegglin (center/ZG) also warned against more spending and criticized the growth in personnel at the federal government: "Soon we will be able to celebrate the 40,000th full-time position in the administration." The committee would therefore like to see the cost of living increase waived and cuts in public relations work.

"The situation is relaxed thanks to painful savings," replied Eva Herzog (SP/BS). Due to cuts already made, particularly in development cooperation, the budget for 2026 looks good. No further cuts should now be made to development cooperation, the environment and personnel.

Herzog warned that the opportunity should be used for sustainable investments.

Baptiste Hurni (SP/NE) also said that the predicted financial doomsday had not materialized. "Let's stop talking about a difficult situation and a spending problem".

Beat Rieder (center/VS) urged adherence to the debt brake. Only a financially strong state can be a social state, he said. Benedikt Würth (center/SG) warned that defense capability must have priority and recalled the decision to increase army spending to one percent of national economic output by 2032.

8.15 a.m.

Debate begins in the Council of States

The haggling over the Confederation's income and expenditure for next year begins. Today, Tuesday, the Council of States is the first chamber to start the budget debate. Its Finance Committee is not requesting any significant additional expenditure.

The Federal Council is budgeting for total revenue of just under CHF 90.4 billion and total expenditure of around CHF 91 billion, but the Finance Committee of the Council of States does not see the improved starting position as a reason to significantly increase expenditure. Its proposals would increase revenue by CHF 26.7 million. Expenditure would be CHF 14.2 million higher than the Federal Council's draft.

The scope for complying with the debt brake would be CHF 384.9 million.

The Council of States Committee wants to spend additional money on agriculture. Among other things, it wants to spend ten million francs more than the Federal Council to promote viticulture and five additional million francs to vaccinate livestock against bluetongue disease.

Federal funding for gender equality programmes and for family and child protection organizations is also to be increased. The Commission wants to support the Tox Info round-the-clock poison control center and addiction prevention with an additional CHF 800,000, which is under threat due to a lack of funds. In view of the low rate of inflation, it wants to cancel the cost-of-living adjustment for the administration, which equates to savings of CHF 34 million. In addition, it wants to save around six million francs on the Confederation's public relations work.

Ten million francs for the promotion of international night trains is controversial. The Council of States committee wants to cut it, while the National Council's sister committee wants to keep it. The Council of States committee also wants to budget ten million francs less for alternative drive systems for buses and ships.

Next Thursday, it will be the National Council's turn for the first time. The budget must be amended in the winter session.

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The big budget battle is part of every winter session - and this year, too, it promises to be anything but tedious table work. The starting point is an unexpected windfall from Geneva: the canton is expecting around CHF 290 million more tax revenue to flow into the federal coffers.

The debate begins on Tuesday in the Council of States. blue News explains what you need to know now.

The canton of Geneva is expecting unexpectedly high tax revenues for the current year. According to the available financial figures, this involves additional revenue of around CHF 290 million, which will flow to the federal government. The reason for this is that several large tax invoices have arrived late and are now taking full effect.

For the federal budget, this means that the financial room for maneuver is greater than the financial administration had originally calculated. Although Switzerland is still talking about a deficit, this additional sum has a direct impact on various budget items. The National Council Committee has made it clear that the new revenue has been incorporated into its priorities.

The unexpected cash flow is considered a stroke of luck in the Federal Parliament - and was a topic of discussion both times: in the preparations for the budget debate and in the debate on the 2027 relief package. The fact that external factors such as additional payments can postpone debates shows how tightly calculated many financial policy decisions now are.

The federal budget remains tight despite the higher revenue. For 2026, revenue of CHF 90 billion will be offset by expenditure of CHF 90.8 billion. This leaves a gap of around 800 million francs that will not be completely closed.

This structural deficit is one of the central arguments why parliament continues to talk about "saving" or "relief". Although income is increasing, expenditure is growing faster and much of it is tied up. This means that Switzerland remains in an area that continues to require political prioritization.

The fact that the deficit remains despite additional funds makes it clear why both the National Council and the Council of States are setting clear priorities. The practice of working through reallocations rather than real cuts is a pattern that is being repeated as in previous years.

The Finance Committee of the National Council (FK-N) envisages that a significant proportion of the additional funds available will flow into the army and unemployment insurance. This was announced by committee president Sarah Wyss in Bern. The recommendation is clear: the money should be used primarily for security and labor market policy.

The FK-N spent 92 hours discussing the priorities. In the end, a decision was reached that was not politically satisfactory for everyone, but was supported by a majority. The army is to be further strengthened, although at the same time the 2027 relief package is pushing for savings. Unemployment insurance should also benefit.

The fact that these two areas in particular are being prioritized also has to do with the fact that they have been the focus of much political attention in recent years. The army in particular has become one of the central topics in the budget debates.

While more funds are earmarked for the army and unemployment insurance, the FK-N is proposing cuts in other areas. One of the most affected areas is international cooperation, in particular development aid. This area is traditionally seen as an easy target for savings because the recipients concerned have no direct political representation in Switzerland.

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Expenditure on federal personnel is also to be reduced. This is not about mass cuts, but about a general budget brake to slow down the rise in costs. The Commission argues that all departments must make their contribution to reducing costs.

However, these cuts are politically controversial. There was scepticism from different camps within the Commission in particular: left-wing representatives criticized the cuts in development aid, while the middle classes were bothered by the fact that the additional Geneva money was not being used directly to reduce debt. This shows how controversial prioritization remains.

In the Council of States, the priorities are different. The Finance Committee wants additional funds for the Poison Control Center, which has been under medical and organizational pressure for years. This area is regarded as indispensable and is considered relevant to safety by all parties.

The Council of States is also calling for more money for agriculture. This is a traditional position of the small chamber, which is strongly supported by rural regions. Every year, the agricultural lobby tries to fend off cuts or secure additional funding.

At the same time, the Council of States committee would like to cut subsidies for night trains - especially those that run to Malmö. This specific budget item has become the symbol of a larger conflict this year. It only amounts to CHF 10 million, but it is heavily charged with party politics.