The Elements of Swiss Public Administration Final.pptx

Public Administration

1. The Elements of Swiss Public Administration

2. Outline of Presentation Organization Management of Personnel Method and Procedure Material and Supply Public Finance Administrative Accountability

3. Organization

4. Switzerland’s Government Structure Switzerland is the closest state in the world to have a direct democracy where citizens may challenge any law voted by the federal assembly. Switzerland’s Executive, Judicial and Legislative institutions are organized on federal, cantonal and communal levels. 1. Federal Assembly (Legislative Branch): ○ National Council : Represents the public with 200 members. ○ Council of States : Represents the cantons with 46 members. 2. Federal Council (Executive Branch): ○ Composed of seven members elected by the Federal Assembly. ○ Each member heads a federal department. 3. Federal Supreme Court (Judicial Branch): ○ The highest judicial authority, with judges elected by the Federal Assembly.

5. The Federal Assembly is Switzerland's bicameral parliament, consisting of two chambers: National Council: This is the lower house, representing the Swiss population. It has 200 members elected every four years through proportional representation. Each canton is allocated seats based on its population, with at least one seat guaranteed per canton. Council of States : This is the upper house, representing the cantons. It has 46 members, with each canton sending two representatives, except for the six half-cantons, which send one each. Members are elected every four years using a first-past-the-post system. Both chambers have equal powers and must agree on legislation for it to pass. They also meet together as the United Federal Assembly for specific tasks, such as electing the Federal Council and federal judges FEDERAL ASSEMBLY ( Legislative Branch )

6. The Federal Council is the highest executive authority in Switzerland, functioning as a collective head of state and government. It consists of seven members, each heading a federal department . The members are elected by the Federal Assembly for four-year terms, and they make decisions jointly. President of the Swiss Confederation : This role rotates annually among the seven members and is considered "first among equals" without additional powers. The Federal Council is responsible for implementing laws, managing federal administration, and representing Switzerland internationally. FEDERAL COUNCIL ( Executive Branch )

7. The Federal Supreme Court is the highest judicial authority in Switzerland. It is headquartered in Lausanne, with some divisions in Lucerne. The court has 40 justices elected by the Federal Assembly . Functions: The court rules on appeals from lower courts, ensuring the uniform application of federal law and protecting constitutional rights. It handles civil, criminal, administrative, and social law cases. Organization: The court is divided into several divisions based on legal areas, such as public law, civil law, criminal law, and social law. FEDERAL SUPREME COURT ( Judicial Branch )

8. Management of Personnel

9. 1. Cantons ▪ Switzerland is divided into 26 cantons, which are the member states of the Swiss Confederation. Each canton has its own constitution, legislature, government, and courts ▪ The cantons are responsible for many key areas, including healthcare, welfare, law enforcement, and public education. They also have the power to levy taxes. 2. Districts ▪ Most cantons are further divided into districts, known as Bezirke in German, districts in French, and distretti in Italian. ▪ These districts generally handle administrative and judicial functions. However, some cantons, such as Uri, Obwalden, Nidwalden, Glarus, Zug, Basel-City, and Geneva, do not have a district level of government2 Switzerland's administrative divisions are structured into several levels, each with its own unique characteristics:

10. 3. Municipalities ▪ The smallest administrative units are the municipalities, which handle local governance. Municipalities have significant autonomy and can levy taxes and pass municipal laws ▪ The degree of autonomy varies depending on the cantonal constitution. Switzerland's administrative divisions are structured into several levels, each with its own unique characteristics:

11. Method and Procedure

12. Brief Background on Swiss Government Federal form of government President of the Swiss Confederation only serves for one calendar year Governed by the Directorial System 7 members of Swiss Federal Council representing the Swiss population proportionately

13. Brief Background on Swiss Government Bicameral form of legislative system with the National Council and Council of States National Council has 200 representatives More populous cantons have more seats President of the National Council can only serve for one year Council has 46 representatives Population is irrelevant in the distribution of seats

14. Switzerland’s Legislation Process Impetus Preliminary draft Consultation procedure Draft legislation Federal Council dispatch Preliminary examination by the Committee of the first chamber Consultation in the first chamber Examination and consultation in the second chamber Resolution of differences in the first chamber Resolution of differences in the second chamber Conference of ciliation Final vote in the first and second chamber Optional referendum Popular vote Entry into force

15. No Work on Sundays Work is generally prohibited on Sundays, except for certain sectors Employers must get authorization to hire workers on Sundays, with employee’s consent Employees who work on Sundays can take time off any other day If worked on Sunday for under five hours, employee may take the same amount of time off from any other day Employers may not offer cash compensation in lieu of time off Employees who worked for at least six Sundays a year are entitled to a 50% wage supplement

16. Education Laws Primary school is mandatory for the first six years, but may last for eight years Secondary school is mandatory Other types of education are not mandatory 95% of Swiss residents send their children to public schools

17. Material and Supply

18. Public Procurement in Switzerland

19. Swiss Public Procurement Law

20. SIMAP.CH PLATFORM The name is an acronym for système d'information sur les marchés publics en Suisse , which means information system on government procurement in Switzerland". The procurement platform of the Swiss Confederation and government-associated organizations, cantons and communes in Switzerland. Go Live in July 2024

21. Agricultural Products Non-agricultural Products

22. Key factors to success

23. Public Finance

24. the management of a government's money and the study of how the government uses that money. It includes the collection of taxes, the spending of money, and the management of debt. Importance of Public Finance in Switzerland it is essential for supporting economic growth, social welfare, infrastructure, contributing to its overall prosperity and stability Public Finance

25. Structure of Public Finance in Switzerland The Swiss public finance system is characterized by a decentralized structure, with significant financial responsibilities distributed among the federal, cantonal and municipal level. Currency: Swiss Franc (CHF) Central Bank: Swiss National Bank Federal Department of Finance and Federal Finance Administration manage Switzerland’s public finance. Federal Council oversees the government budget.

26. Legal Foundations Primary Legal Framework : The Constitution and Financial Management Act of Parliament (FMAP) . Each canton has its own FMAP, aligning with federal principles but allowing flexibility. Key Budgetary Principles : ◦ Legality : All expenditures and revenues must have a legal basis. ◦ Balanced Budget : Revenues and expenditures must be aligned in the long term. ◦ Efficiency & Effectiveness : Public funds must be spent responsibly. ◦ Prohibition of Earmarking : Most taxes cannot be allocated for specific expenditures. ◦ User-Pays Principle : Costs of public services should be borne by beneficiaries (used in some cantons).

27. Swiss Budgeting Process Federal Level Preparation: Federal Department of Finance is responsible for the federal budget Approval: The budget is submitted to the Federal Assembly for discussion and approval Implementation: Budget is executed by the federal agencies Cantonal Level Preparation: Decentralized approach Approval: The budget is submitted to the Cantonal Parliament for discussion and approval Implementation: Budgets are executed by the respective cantonal authorities Communal Level Preparation: Communal councils Approval: The budgets are presented to local assemblies for approval Implementation: Budgets are executed by the local authorities

28. Revenue Sources •Direct Federal Tax – most important source of receipts, approximately half of which is paid by natural persons and legal entities •VAT – second largest source of receipts levied on all services and goods sold •Other sources – consumption taxes, such as mineral oil tax and tobacco duty, and withholding tax, which is levied mainly on dividends and interest

29. Tax System (3 Levels of Taxation) •Confederation Authority in all areas in which it is empowered by the Federal Constitution - the Confederation is only allowed to levy taxes to which it is authorized by the Federal Constitution • Cantons (26 Cantons) Authority in all areas that are not reserved to the Confederation the cantons are authorized to levy any type of tax as long as they do not infringe upon the exclusive authority of the Confederation or upon the Federal Constitution and Federal Law • Municipalities (approx. 2,131 Municipalities) Authority in all areas that are entrusted to them by the Canton à the municipalities are only allowed to levy taxes within the limits that the authorities delegated them in accordance to the respective cantonal laws

30. Federal Level Taxes on Income • Income tax (individuals) • Tax on net profit (legal entities) • Withholding tax on certain items of income of certain taxpayers (e.g. salary income of short term residents without Swiss citizenship and of non-residents) • Withholding (Anticipatory) tax on certain types of income on movable capital assets Taxes on goods and services •Value Added Tax •Stamp duties •Tobacco tax •Beer tax and tax on distilled spirits •Mineral oil tax •Motor vehicle tax •Customs duties Cantonal or/and Municipal Level Taxes on income and on net wealth All cantons • Income and net wealth tax (individuals) • Tax on net profit and on capital (legal entities) • Real estate capital gains tax • Withholding tax on certain items of income for certain taxpayers Not all cantons • Inheritance and gift tax • Lottery income tax • Real estate tax Taxes on goods and services Not all cantons • Taxes on transfer of immovable property • Motor vehicle tax • Stamp duties • Dog tax • Entertainment tax • Visitor’s tax (or Tourist Tax) Tax System (Taxes at the 3 Levels)

31. Public Expenditure Public services funding – covers essential services such as education, healthcare and public safety Infrastructure investment – focuses on transportation, utilities to support economic growth and connectivity Social welfare programs – aims to provide financial support and services to vulnerable populations, includes pensions, unemployment benefits and health insurance

32. Fiscal Policy Framework Balanced budget rule generally requires that government’s expenditures do not exceed its revenues, ensuring fiscal discipline Debt brake mechanism this constitutional rule ensures the federal expenditures does not exceed revenues Fiscal equalization a system in which the financial resources are redistributed among cantons to ensure equitable public service levels

33. PUBLIC-PRIVATE PARTNERSHIPS In Switzerland, PPPs have been instrumental in various sectors, including transportation, healthcare, and education. Example: The Administrative Centre Neumatt, the Only Contractual PPP in Switzerland This is in 2009, between the Canton of Bern and the project company Zeughaus PPP AG, formed by the construction groups Marti AG and Royal BAM AG, as well as Hälg Facility Management AG. This contract covers a period of 25 years, starting in 2012, and includes designing, building, financing and operating a new complex which includes a regional prison for 110 inmates, four administrative buildings, a workshop for the canton’s Road and Civil Engineering Services, as well as an underground car park.

34. Administrative Accountability

35. Definition The principle that government officials and employees are answerable for their actions, decisions, and performance within their assigned roles, ensuring they adhere to legal mandates, ethical standards, and proper procedures, and can be held responsible for any misconduct or failures in carrying out their duties; essentially, it means being held accountable for the responsible and efficient management of public resources and functions within the administrative system .

36. Switzerland's administrative accountability to itself is characterized by a strong legal framework, decentralized governance, and a culture of transparency. Here’s how it aligns with the key aspects of administrative accountability: Legal Accountability – Swiss public officials and agencies must comply with the Swiss Constitution , administrative laws, and legal frameworks such as the Federal Act on Administrative Procedure . The Federal Supreme Court ensures that government actions adhere to the rule of law

37. 2. Political Accountability – Switzerland’s unique direct democracy allows citizens to hold the government accountable through referendums and initiatives. The Federal Assembly (Parliament) supervises the Federal Council (executive) and ensures adherence to policies. 3. Bureaucratic Accountability – The Swiss government maintains strict internal controls, audits, and oversight bodies, such as the Swiss Federal Audit Office (SFAO) , which evaluates public sector performance and financial management.

38. 4.Ethical Accountability – Switzerland upholds a strong culture of public service integrity. Strict anti-corruption laws (are found within the Swiss Criminal Code) and ethical codes regulate government officials' conduct. 5. Performance Accountability – Government agencies must demonstrate efficiency in public service delivery. Independent bodies, such as the Swiss Federal Data Protection and Information Commissioner (FDPIC) , monitor public administration performance.

39. 6. Social Accountability – Swiss citizens actively engage in governance through referendums, public consultations, and a free press that scrutinizes government decisions. Civil society organizations also contribute to oversight and transparency. Switzerland’s administrative accountability is reinforced by its high transparency, strong legal institutions, and citizen participation , ensuring that the government remains accountable to itself and its people.

40. Here’s a detailed comparison table that outlines the administrative accountability mechanisms in Switzerland at the federal, cantonal (state), and municipal levels, including examples of specific laws and control systems implemented at each level: Aspect Federal Level Cantonal Level Municipal Level Legal Framework Governed by the Swiss Federal Constitution (Federal Act on Administrative Procedure) Each canton has its own constitution and laws (e.g., Cantonal Constitution of Zurich ) Governed by cantonal laws and local regulations (e.g., Municipal Act of Geneva )

41. Aspect Federal Level Cantonal Level Municipal Level Control System Federal Audit Office (Eidgenössische Finanzkontrolle) conducts audits of federal entities Independent cantonal audit offices (e.g., Cantonal Audit Office of Bern ) Local internal audit mechanisms subject to cantonal oversight Transparency Federal Act on Freedom of Information mandates public access to information from federal agencies Cantonal information laws require public access to cantonal administrative information Local transparency regulations ensuring access to municipal documents

42. Aspect Federal Level Cantonal Level Municipal Level Financial Accountability Audited by the Federal Audit Office (Eidgenössische Finanzkontrolle) Each canton has independent oversight bodies (e.g., Cantonal Audit Office of Zurich ) Local audits conducted by cantonal authorities or appointed local auditors Political Accountability Elected officials accountable through federal elections (Held every four years) Elected cantonal representatives accountable through cantonal elections Local elected officials accountable through municipal elections

43. Aspect Federal Level Cantonal Level Municipal Level Engagement with Civil Society Engagement through federal programs (e.g., Federal Office for Social Insurance ) Civil society involved in cantonal policies (e.g., public consultations ) Community input in local governance via NGOs and local forums Judicial Oversight Citizens can challenge federal decisions in Federal Administrative Court Appeals against cantonal decisions can go to Cantonal courts Local decisions can be contested in Cantonal courts

44. Aspect Federal Level Cantonal Level Municipal Level Judicial Oversight Citizens can challenge federal decisions in Federal Administrative Court Appeals against cantonal decisions can go to Cantonal courts Local decisions can be contested in Cantonal courts Media Scrutiny National media outlets scrutinize federal actions, guided by Media Act Local media assess cantonal governance, sometimes mandated by cantonal media laws Community media reports on municipal issues, often linked to local journalism standards