Social spending remains higher than before Covid

Expenditure on social benefits in Switzerland fell by 2% in 2022 compared with the previous year, but remained 6.7% above the pre-Covid level. An all-time high was recorded in 2020 during the pandemic. The government’s expenditure on social benefits will reach almost CHF208 billion ($240 billion) in 2022, a drop of CHF4.2 billion (2%) compared with 2021, according to the Federal Statistical Office (FSO) in a final overall statement published on Monday. This figure represents 23.2% of GDP. This fall is mainly due to two distinct factors. On the one hand, the post-Covid economic recovery led to a reduction of CHF7.4 billion in unemployment benefits. On the other, the general rise in prices has reduced the real value of social benefits paid to households, the FSO said in a press release. + Swiss government wants spending cuts across the board This general trend is also observed in the rest of Europe. On the other hand, while health-related benefits fell in most European countries...