Graubünden: 2027 budget shows smaller deficit, tax revenue tops one billion francs for first time

The government of the canton of Graubünden presented its 2027 budget on Wednesday, meeting six of the eight financial policy indicators set by the Grand Council. According to the executive, public finances are solid: spending growth has been significantly contained, while tax revenue shows a positive trend.

The cantonal accounts forecast a deficit of 99.3 million francs, down from the 111.3 million budgeted for 2026. This year, however, is expected to close balanced or with a sizeable surplus, according to the government, partly thanks to higher income from the Graubünden Cantonal Bank.

For 2027, ordinary expenditure is planned at 3,139.3 million francs and ordinary revenue at 3,019.7 million francs. Tax revenue is set to rise by 33.5 million francs (+3.4%), crossing the one-billion-franc threshold for the first time, even as the 2026 tax rate cut takes full effect. The increase stems from the positive development of tax receipts this year. The budget also includes a profit distribution from the Swiss National Bank of 60.8 million francs, four times higher than expected, and a 10 million franc increase from the national fiscal equalization scheme, partly supported by supplementary federal contributions of 49.7 million francs.

Investment and public contributions weigh on the financial plan

Net investment to be financed by the canton remains at a historically high level, around 365 million francs, mostly for large projects such as the new building for the Graubünden University of Applied Sciences in Chur and, from 2027, the renovation of the Graubünden Nature Museum. The 2028-2030 financial plan foresees deficits of up to 199 million francs, suggesting the balance remains fragile beyond the budget horizon.

The largest expenditure item remains contributions to public bodies and third parties, which in the 2027 budget reach almost 1.5 billion francs combined across the income statement and the investment account. Over the past four years, these contributions have grown by an average of 5.7% a year, more than three times the 1.7% average annual growth of the cantonal economy. The areas that have grown the most include individual premium reductions, subsidies to hospitals and care homes, public transport, and special education measures.

The gap between the growth of social and health spending and that of the real economy raises the question of how long the canton can keep financing such large investments while leaving these automatic spending mechanisms unchanged, particularly if the extraordinary tax revenue seen in 2027 does not recur in future years.