structural:scholar_edition
Taxation and government spending

Switzerland is a tax haven. The private sector economy dominates. It features low tax rates; tax revenue to GDP ratio is one of the smallest of developed countries. The Swiss Federal budget reached 62.8 billion Swiss francs in 2010, 11.35% of GDP; however, canton and municipality budgets are not counted as part of the federal budget. Total government spending is closer to 33.8% of GDP. The main sources of income for the federal government are the value-added tax (33% of tax revenue) and the direct federal tax (29%). The main areas of expenditure are in social welfare and finance/taxes. The expenditures of the Swiss Confederation have been growing from 7% of GDP in 1960 to 9.7% in 1990 and 10.7% in 2010. While the social welfare and finance sectors and tax grew from 35% in 1990 to 48.2% in 2010, a significant reduction of expenditures has been occurring in agriculture and national defence; from 26.5% to 12.4% (estimation for the year 2015).