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The French-speaking cantons will receive more money from financial equalization next year. For its part, Geneva will see its account drop. On Wednesday, the Federal Council confirmed the July announcements.

At the request of the cantonal finance directors, an adaptation of the database of the cantons of Bern and Zurich took place. This is reflected in the payments. The canton of Geneva will have to pay a total of 189.5 million francs next year against 274.9 million in 2020.

Freiburg will receive 458 million francs against 387.4 million this year. Growth is also confirmed in the Canton of Vaud, with 87.7 million (72.2 million in 2020), in the Valais with 785.1 million (759 million), in Neuch√Ętel with 249.2 million (237.8 million) and in the Jura with 167.8 million (167.5 million).

Vaud and Geneva are the two French-speaking cantons with a high resource potential.

Less money for Bern

The main beneficiary of equalization in absolute numbers, the canton of Bern will receive 916.3 million francs next year, or 184.9 million less than in 2020. On the side of the rich cantons, Zurich will pay the most (499.6 million), although his account will decrease slightly (-17.2 million).

The per capita sum will remain the highest in Zug at 2,662 francs. In total, the canton, the country’s second largest contributor, will pay 331.8 million francs. The canton of Schwyz follows with 199.3 million.

Compared to 2020, the resource index will increase in fourteen cantons and decrease in twelve. The largest increase in the index is observed in the cantons of Zug (+4.2 points), Appenzell Innerrhoden (+3.5 points) and Bern (+2.8 points). The decline is more marked in the cantons of Geneva (-5.8 points), Schwyz (-5.6 points) and Nidwalden (-4.5 points).

All cantons with a resource index below 70 points will reach the guaranteed minimum allocation of 87.1 points after resource equalization. In 2021, these are Jura and Valais.

Three funds

In total, the sums paid in will decrease by 67 million compared to the previous year, reaching 5.2 billion francs. Equalization is based on three funds. The first (resource equalization) aims to help cantons with low potential. The Confederation will contribute 2.4 billion (-4.9%) and the cantons with 1.6 billion (-4.9%).

The second fund aims to offset the excessive burdens of the cantons. The ordinary federal contribution will amount to almost 721 million francs.

It will be divided equally between the compensation for excessive costs due to geo-topographical factors and those due to socio-demographic factors. Due to the drop in the price level, it will decrease by 1.1% compared to 2020.

In addition, the contribution intended to compensate for excessive burdens due to socio-demographic factors will increase by 80 million francs in 2021. In total, 360 million will therefore be allocated to compensate for excessive burdens due to geo-topographical factors and 440 million to compensate for excessive burdens due to to socio-demographic factors.

Finally, the compensation for hardship is aimed at ensuring that no poor canton suffers a deterioration in its financial situation due to the transition, which took place in 2008, to the current equalization system. The amount paid will decrease by 6.7% to 245 million. For 2021, the 18 cantons with low potential will benefit from payments of 80 million francs.

Coronavirus not taken into consideration

The calculation years 2015, 2016 and 2017 are decisive for the calculation of the equalization of resources for 2021. The coronavirus pandemic therefore has no effect on the data presented, the government specifies.

The year 2021 is the second transitional year of the 2020 financial equalization reform. The target value of the guaranteed minimum allocation will drop from 87.7% in 2020 to 87.1% of the Swiss average in 2021. The cantons the low resource potential will benefit for the first time from payments to mitigate the financial consequences of the reform.

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