A fund for future generations

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The canton's surpluses raise the question of how to use them over the long term. The canton has used them for current measures, such as the reduction of health insurance premiums, and for investments in infrastructure and housing. An alternative would be to set aside part of the surpluses in a fund for future generations, similar to the sovereign wealth funds of Norway and Singapore on a much smaller scale. The fund could be invested in a diversified portfolio and used to stabilise the canton's finances in years of lower revenues. It could also finance long-term investments in education, research and infrastructure.¹

Such a fund would protect the canton against the volatility of its revenues, which depend heavily on a few large companies and on the minimum tax. It would also reduce the temptation to spend windfalls on measures that create permanent obligations. The fund's governance would be important, requiring clear rules on investment and withdrawal, independent management and transparency. It would also need political support, since the citizens of the canton would have to accept that part of the surpluses is saved for the future, which leaves less for lower taxes or higher spending.

Notes

Author's construction; not a factual claim: the fund for future generations is the author's proposal, and no cantonal proposal for such a fund was found. For comparison: SRF, "Als erster Kanton: In Zug bekommt die Bevölkerung in guten Jahren Steuergeld zurück", 2 July 2026, srf.ch: the Kantonsrat approved at first reading a tax rebate (Steuerrabatt) of at most eight percentage points after financial years with high surpluses, subject to an optional referendum. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.

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Dr Alexander Ressos, TEP

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A fund for future generations

Notes

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