Lugano budget for 2027 shows a deficit of 14.7 million

Lugano's executive approved the 2027 budget on Thursday. The document now goes to the city council, which must review and approve it.

The budget projects a current operating deficit of 14.7 million francs. That figure is 4.8 million lower than forecast in the 2026-2033 financial plan, and 15.4 million lower than an earlier projection, which had pointed to a deficit of 30.1 million.

Tax multipliers remain unchanged: 80% for individuals and 85% for legal entities. The executive presents this as a signal of stability in the process of fiscal consolidation, one that avoids raising the tax burden on residents and businesses while preserving Lugano's appeal as a place to live and work.

Investment and new debt

The budget allows for net investment spending of 97 million francs, which includes part of the balance for the purchase of the PalaRaiffeisen arena. Self-financing comes to only 16.6 million. This imbalance produces an overall negative result of 80.4 million, matching the new debt projected for 2027.

In its statement, the executive explains that the goal is to "contenere progressivamente i disavanzi, rafforzare l'equilibrio finanziario e governare l'evoluzione del debito attraverso una gestione rigorosa" (progressively contain the deficits, strengthen financial balance and manage the evolution of debt through rigorous management). This commitment, the executive adds, will not mean giving up strategic investments or the quality of services provided to residents.

The budget incorporates the consolidation measures already approved, but does not yet account for the steps that will be needed from 2028 onward to offset the financial effects of the 2025 popular votes. By the end of the year, the financial consolidation committee will present measures to make the city's activities more efficient; during 2027, new priorities for municipal action will then be defined.

For the current year, the executive instead expects to close with an operating surplus. An encouraging signal that, as the executive itself notes, "non elimina la necessità di proseguire con determinazione e rigore nel percorso di riequilibrio dei conti a lungo termine" (does not remove the need to continue with determination and rigor on the long-term path toward balanced accounts).

What remains to be seen is which concrete measures the consolidation committee will propose by year's end to contain the growth of debt, and whether they will be enough to change course without touching tax multipliers or investments.