The Swiss government announced on Wednesday it will request an additional CHF970 million for air defense improvements this year. This funding comes from higher-than-expected tax revenues, mainly from corporation tax on businesses. The extra budget aims to secure production capacity and timely delivery of military purchases, which will be finalized in the 2026 Armed Forces dispatch.
Key Details
The proposed budget includes CHF250 million for short-range and CHF650 million for medium-range surface-to-air defense systems. Additionally, CHF60 million is set aside for a semi-permanent medium-range radar system. CHF10 million will be used for defense against mini-drones. The government is also seeking CHF100 million for security upgrades at over 60 military sites. This will improve fencing, CCTV, and electronic access controls.
Background
Parliament will debate the army budget this autumn. Discussions on the extra credit are scheduled for winter. Advance payments will be made once decisions are finalized to ensure timely deliveries. The government also updated its budget outlook. It now forecasts a surplus of CHF800 million for 2026, a big change from an earlier deficit estimate of CHF700 million. This update follows an austerity plan approved by parliament and a sharp rise in corporation tax revenues from several cantons, including Lucerne, Zurich, and Basel-City.
The proposed military spending could affect Switzerland's defense sector, especially companies involved in military technology and procurement. Investors will pay attention to the parliamentary debates this autumn about the army budget and extra credit. These discussions will determine the future of these allocations.
Based on reporting by: swissinfo.ch