MONET 2030: Disparities in fiscal capacities of the cantons

SDG 10: Reduce inequality within and among countries

Goal description

«[…] inequality still persists and large disparities remain in access to health and education services and other assets. Additionally, while income inequality between countries may have been reduced, inequality within countries has risen. […]»

Significance of the indicator
This indicator shows the range of financial disparity between the cantons. It shows the dispersion (standard deviation) of the indices of canton resources before fiscal equalisation. These indices show the potential of the cantons’ resources or the economic base available to them in order to provide public goods and services. In terms of sustainable development and social cohesion, it is important for resources to be distributed fairly and to encourage the integration of disadvantaged regions from an economic, social, cultural and political perspective. In this way, peripheral regions with low population density, or those that have to bear excessive costs due to topographical or socio-demographic factors should not be marginalized by more prosperous regions. To encourage sustainable development, therefore, cantonal disparities with regards financial capacity need to be reduced.

Help for interpretation
After fiscal equalisation, the differences between resource-poor and resource-rich cantons are reduced. For each period observed, disparities between the cantons were reduced by an average of 11 points. However, the gaps in terms of the cantons’ financial capacities continue to widen.

International comparability
This indicator cannot be compared at international level.

Synthesis

The indicator shows the standard deviation of indices of the 26 cantons resources before fiscal equalisation.

The calculation of the resource indices is based on a moving average of the aggregated tax base over three years. A canton's resource index is equal to its resource potential per capita, divided by Switzerland’s per capita resource potential. The quotient obtained is then multiplied by 100.

Cantons with an index of over 100 are considered to be resource-rich cantons. The remaining cantons are resource-poor.

4b Equal opportunities and fair distribution of wealth
Each member of society should have equal rights and opportunities. Society should strive to achieve fairer access to resources and their equitable distribution.

4c Integration of the less fortunate
The integration of disadvantaged groups of the population and regions into economic, social, cultural and political life should be promoted.