(Adds detail and government comment)
ZURICH, Feb 15 (Reuters) - The Swiss government ran up a
budget deficit of 4.3 billion Swiss francs ($4.65 billion) in
2022, it said on Wednesday, due to lower receipts and higher
than expected spending on COVID-19 measures as well as support
for Ukrainian refugees.
The shortfall meant Switzerland closed the year with a
higher deficit than is normally permitted under government rules
for the first time since 2005.
At this stage in the economic cycle a deficit of 300 million
francs would have been allowed, meaning the deficit was seen as
a structural rather temporary situation, it said.
Ordinary receipts grew by 1% year on year, but were still
1.8 billion francs or 2.3% below what was budgeted as the
federal authorities received less money from withholding tax.
Ordinary expenditure was lower than expected, but the
government spent more than forecast on extraordinary items like
COVID-19 support for workers and helping people coming to
Switzerland from the war in Ukraine.
The Swiss government expects a structural deficit of 2
billion for 2024, and has already decided on measures to reduce
the shortfall by 1.6 billion next year.
Among the measures announced are scaling back the
increase in military spending, and introducing tax on electric
vehicles.
"The majority of these measures will also remain in
effect in the years after 2024," the government said.
"Nonetheless, the structural deficits from 2025 onwards will
still be high."
($1 = 0.9248 Swiss francs)
(Reporting by John Revill; Editing by Noele Illien
Editing by Riham Alkousaa)
Messaging: john.revill.thomsonreuters.com@reuters.net))
