Abstract
ABSTRACT The Swiss federal reform 2008 (NFA) has been a major undertaking in the recent history of the Swiss federation, with the re-allocation of policy tasks being a key component of the reform. So far, research has focused in particular on the decision-making process of the reform. This paper focuses on the fiscal impacts by asking whether the re-allocation of tasks has changed the vertical distribution of fiscal resources and whether these changes have increased fiscal autonomy of subnational governments. The paper shows that subnational government expenditure as well as non-earmarked federal government grants have increased slightly. At the same time, however, revenue has not increased correspondingly. This has imposed strong limitations on subnational fiscal autonomy and has led to a deterioration rather than an improvement of the situation of subnational governments in federal Switzerland. The paper concludes with suggestions for further research on constitutional change in federal states.
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