Swiss canton of Lucerne strengthens its finances
Lucerne - The canton of Lucerne has drafted its Finance and Task Plan for 2025 to 2028. With higher tax revenues forecast thanks to the OECD minimum taxation, there is room for manoeuvre in the areas of investments and services as well as tax rate reduction.
The cantonal government for the Swiss canton of Lucerne has approved the Finance and Task Plan (AFP) for the years 2025 to 2028. According to a statement, the canton is in the position to further strengthen its financial base. This is due to higher tax revenue than expected in the budget for 2025 and in the planning years 2026 to 2028.
This favorable result means the canton's plan can provide for higher investments and two tax rate reductions. Investments can be made in the areas of building construction, roads and healthcare, in particular. A total of 100.2 million Swiss francs will be made available for building construction. In the roads fund, the cantonal government is authorizing debt of up to 40 million Swiss francs. In the health sector, the equity of Lucerne Psychiatry is being increased by 23 million Swiss francs.
Thanks to the strong balance sheet, the tax rate can be reduced in two stages from the current 1.60 to 1.55 (2025), and then to 1.45 units (2026). The plan also provides for further investments in the areas of public order and safety, such as digitalization and education. A total of 40.5 million Swiss francs will be invested in this area in 2025.
«The canton of Lucerne is on sound financial footing. Our tax strategy is bearing fruit,» Reto Wyss, head of the Lucerne cantonal government, is quoted as saying. «The additional annual income of 400 million Swiss francs from the OECD minimum taxation also opens up new prospects. Nevertheless, the canton of Lucerne must continue to use its financial resources prudently in the coming years.» The cantonal council will vote on the AFP in the October session.
