Switzerland's Parliament has concluded intense debates over the 2025 federal budget, avoiding a government shutdown.

While the budget aligns with the debt brake, challenges loom for long-term funding.

The military budget will rise from 5.7 to 6.3 billion francs in 2025, with a goal of reaching 7.4 billion by 2028. However, this increase remains unfunded, sparking discussions on potential tax hikes.

Meanwhile, the largest budget item, AHV pensions, continues to grow, pressuring other state expenditures.

Proposals to address these gaps, including a controversial VAT increase, face political hurdles.

Without new revenue, both defense and social security funding remain uncertain.