The city of Zurich has reported a record budget surplus of 518 million Swiss francs for 2024, despite initially forecasting a deficit.

This marks the third consecutive year of significant miscalculations, with higher-than-expected tax revenues being a key factor.

Tax income reached 3.72 billion francs, driven by strong economic performance and property sales.

While the surplus highlights Zurich's financial strength, it has ignited political debates.

The left-leaning Social Democrats propose a 200-million-franc annual "purchasing power package" to ease costs for residents, including subsidies for public transport and childcare.

Meanwhile, center-right parties argue for tax cuts, criticizing the city for overburdening taxpayers and accumulating debt, which now stands at 6.5 billion francs.

Finance Chief Daniel Leupi defends the cautious budgeting, citing uncertainties like geopolitical crises and climate change.

However, critics accuse him of deliberately underestimating revenues to avoid tax reductions.

The debate underscores the challenge of balancing fiscal prudence with public demands in a thriving yet expensive city.