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The price of solidarity – Switzerland’s inter-cantonal payments for 2019

Summary:
In Switzerland, much in life revolves around the canton. Cantons have their own health, social and education systems, parliaments and tax rates. Federal government, based in Bern, is a layer that sits over the top, bringing the cantons together as Switzerland. For some cantons, nationhood has a cost. For others it means extra money. Every year, based on a collection of complicated formulae, the federal government calculates how much certain cantons must pay other cantons, a kind of solidarity transfer. Today, the inter-cantonal transfers for 2019 were published. At the same time, the Federal government puts money into the transfer pot – in 2019 it will put in 3.4 billion francs, by far the largest contribution.

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In Switzerland, much in life revolves around the canton. Cantons have their own health, social and education systems, parliaments and tax rates.

Federal government, based in Bern, is a layer that sits over the top, bringing the cantons together as Switzerland.

For some cantons, nationhood has a cost. For others it means extra money. Every year, based on a collection of complicated formulae, the federal government calculates how much certain cantons must pay other cantons, a kind of solidarity transfer.

Today, the inter-cantonal transfers for 2019 were published.

At the same time, the Federal government puts money into the transfer pot – in 2019 it will put in 3.4 billion francs, by far the largest contribution.

Switzerland - inter cantonal transfers in 2019 - CHF 000s

The price of solidarity – Switzerland’s inter-cantonal payments for 2019

- Click to enlarge

The big payers in 2019 will be Zurich (487 million), Zug (329), Geneva (300), Schwyz (299) and Basel-City (125). And the largest recipients will be Bern (1,187 million), Valais (730), St. Gallen (468) and Aargau (400) – see chart above.

On a per capita basis, taxpayers in Zug (-2,727 francs) will contribute the most and the residents of Jura (+2,288 francs) will benefit the most – see chart above.

2019 payments are similar to those for 2018.

Inter cantonal transfers in 2019 - CHF per capita

The price of solidarity – Switzerland’s inter-cantonal payments for 2019

- Click to enlarge


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