Appenzell Ausserrhoden projects budget deficit for 2027

The Appenzell Ausserrhoden Cantonal Council is set to address the 2027 budget proposal, which forecasts an operating deficit of 11.5 million francs and a total loss of 12.4 million francs. These figures include 7.5 million francs in relief measures.

The deficit is primarily driven by lower tax revenues and increased costs related to hospital financing and supplementary benefits. While higher revenues from federal taxes are expected to provide some relief, further measures are required to stabilize the state budget and curb debt. A follow-up mandate for additional relief measures has been initiated, and any potential tax increases will only be considered after the results of this mandate are evaluated.

Regarding tax revenue, natural persons are expected to contribute 188 million francs, which is 9.6 million francs less than planned. Despite a projected growth of 2.5%, a lower starting base and the cancellation of a planned tax rate adjustment have impacted the forecast. The cantonal tax rate for natural persons will remain unchanged at 3.3 units, and the profit tax rate for legal entities will stay at 6.5%.