Noten und Münzen

Public Finances Public Financial Management, Fiscal Federalism and Fiscal Equalisation

Public authorities are obliged to fulfil their mandate efficiently and effectively and to ensure strategic spending of the scarce public funds. Public financial management that adopts the principles of transparency and accountability allows for the best possible use of resources.

With our research and consultancy services, we assist states, cantons and municipalities in reforming their public financial management and fiscal federalism. We focus, among other things, on the inception of fiscal equalisation schemes, the optimisation of budgeting processes, the design of fiscal systems, as well as sustainable and alternative funding instruments. In concert with international organisations, we develop international standards, for instance in the field of programme-based budgeting. 

SERVICES AND AREAS OF RESEARCH

Public Financial Management

Development and application of standards for public financial management

Public finances are a key factor for sustainable development. We study indicators for the assessment of the strengths and weaknesses of public financial management and the related standards (e.g. PEFA). In addition to the continued development of these standards, a cornerstone of our services is their implementation at a local level.

Project examples: 

Points of contact: Stefan Bruni, Marcus Drometer

Fiscal Management and Equalisation

Advancement and adjustment of fiscal equalisation schemes

Fiscal federalism is a key element of decentralised task fulfilment. It ensures that the functions of the state at the individual levels of government are properly allocated, and that the latter are sufficiently funded to fulfil their role. This notably includes a functioning fiscal equalisation scheme for the benefit of structurally weaker cantons and municipalities.

The core tasks of our work include adjusting the allocation of public functions to the suitable level of government as well as the continuing further development of fiscal and financial equalisation schemes. To this end, we use simulation models and analyse novel solutions according to the principles of subsidiarity and fiscal equivalency. Moreover, we explore fundamental questions, for instance concerning the incentivising effect of fiscal equalisation or the interdependencies between regional specialisation, work productivity and specific financial equalisation schemes.

Project examples:

Points of contact: Roland Fischer, Jana Z'Rotz

Public Finances and Climate Change

Revealing the effects of fiscal policy on climate change

Fiscal politics play a key role in the energy transition. Ecological fiscal reform and the promotion of climate-friendly economic activity contribute to our meeting the goals of the Paris accord. 
Successfully promoting sustainable development increasingly requires alternative and sustainable funding instruments, for instance for the energy-efficiency renovation of buildings. Similarly, sustainable assets and investments such as pension and savings funds are increasingly relevant.

Energy-efficiency renovation of buildings is still underfunded, which hampers the necessary improvement of Switzerland’s building stock. Longer-term loans are required in addition to the existing tools for promotion and financing through mortgages. The Swiss Federal Office of Energy has commissioned the IBR with drafting a proposal that is currently being tested and implemented in practice with financial institutions as well as representatives from the construction industry and public authorities. This process includes the development and implementation of a new, sustainable funding scheme and a new business model for the construction sector.

Project example:

  • Hedging of long-term risks of investments in the climate-friendly refurbishment of buildings. Measures in the draft of the CO2 Act after 2020 (report commissioned by the Swiss Federal Office of Energy; not published yet).

Points of contact: Justus Gallati, Stefan Bruni

International Financial Management

Development and application of standards for public financial management

Public finances play an important role in sustainable development. We deal with indicators for assessing the strengths and weaknesses of public financial management and corresponding standards  (e.g. PEFA).  Besides the further development of these standards, their implementation at the local level is one of our main services. 

Project examples:

Points of contact: Stefan Bruni, Marcus Drometer

 

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