Art. 183 FC — Doctrine

#1. Legislative History

N. 1 Art. 183 FC stems from the total revision of the Federal Constitution of 1999 and continues the earlier regulation of Art. 101 old FC. The provision was adopted into the new constitution within the framework of the systematic reorganisation of organisational norms without any intention of material change (BBl 1997 I 378 f.). The Federal Council's message stated that the Federal Council's financial competences should be continued "in a tried and tested manner".

N. 2 The constitutional anchoring of the financial planning obligation reflects the growing importance of forward-looking budget management in the modern federal state. As early as the 1970s, the Confederation had reacted to the increasing complexity of public finances by introducing rolling financial planning. The constitutional revision codified this established practice (BBl 1997 I 379).

#2. Systematic Classification

N. 3 Art. 183 FC is located in Title 5 of the Federal Constitution on the Federal Authorities and is assigned to Chapter 2 on the Federal Council and the Federal Administration. The provision, together with Art. 174 FC (Federal Council as supreme governing and executive authority) and Art. 180 FC (government policy), forms the constitutional foundation of executive leadership responsibility.

N. 4 Systematically, Art. 183 FC corresponds with the parliamentary financial competences under Art. 167 FC. While Parliament decides on expenditure and approves the budget (Art. 167 FC), the Federal Council is responsible for technical preparation and operational implementation of budget management. This division of tasks realises the principle of separation of powers in financial matters (→ Art. 148 FC).

N. 5 The specification is carried out through the Financial Budget Act (FBA, SR 611.0) and the Financial Budget Ordinance (FBO, SR 611.01), which operationalise the constitutional requirements. The relationship to → Art. 126 FC (debt brake) is particularly close: The Federal Council must comply with the requirements of the debt brake when preparing the financial plan and budget.

#3. Elements of the Offence / Content of the Norm

#3.1 Financial Plan (Para. 1)

N. 6 The financial plan is a multi-year planning instrument which, according to Art. 20 FBA, covers a period of three years after the budget year. It shows the expected development of revenue and expenditure as well as the financing result. Häfelin/Haller/Keller/Thurnherr (Schweizerisches Bundesstaatsrecht, 10th ed. 2020, N 1855) characterise the financial plan as a "rolling forecast" that is updated annually.

N. 7 The Federal Council prepares the financial plan in a structured process that involves the departments and the Federal Finance Administration. The preparation includes both forecasting revenue development and planning expenditure priorities, taking into account the financial policy framework conditions (Sägesser, St. Galler Kommentar BV, 4th ed. 2023, Art. 183 N. 4).

#3.2 Budget (Para. 1)

N. 8 The budget is the detailed financial plan for the coming accounting year. It contains all planned revenue and expenditure of the Confederation as well as investments. Unlike the financial plan, the budget is legally binding once it has been approved by the Federal Assembly (→ Art. 167 FC).

N. 9 The preparation of the budget follows a precise timetable: The Federal Council adopts the message on the budget at the end of August/beginning of September so that parliamentary deliberation can be completed in time before the beginning of the year. Müller/Feller (Finanzrecht des Bundes, 2nd ed. 2019, p. 187) emphasise the central steering function of the budget for the entire federal administration.

#3.3 State Financial Statements (Para. 1)

N. 10 The state financial statements document the actual revenue and expenditure of the completed accounting year. They serve to provide accountability to Parliament and the public. The Federal Council prepares the state financial statements according to the principles of proper accounting (Art. 126 para. 3 FC).

N. 11 The state financial statements comprise the income statement, the balance sheet, the cash flow statement and the statement of changes in equity. They are supplemented by a detailed commentary section that explains deviations from the budget (Lienhard/Mächler/Zielniewicz, Öffentliches Finanzrecht, 2017, N 654).

#3.4 Proper Budget Management (Para. 2)

N. 12 The term "proper budget management" is an indeterminate legal concept that is specified by Art. 12 FBA. It encompasses the principles of legality, urgency, economy and effectiveness. These principles apply to all financially relevant activities of the Confederation.

N. 13 Legality requires a legal basis for every expenditure. Urgency ensures that expenditure is made at the required time. Economy means an optimal cost-benefit ratio, while effectiveness focuses on goal achievement (Waldmann, BSK BV, 2nd ed. 2024, Art. 183 N. 8).

#4. Legal Consequences

N. 14 Art. 183 FC establishes a constitutional obligation of the Federal Council to fulfil the mentioned tasks. However, this obligation is primarily of a state organisational legal nature and does not establish subjective rights of private persons. Non-fulfilment or defective fulfilment is subject to parliamentary control (→ Art. 169 FC).

N. 15 When preparing the financial plan and budget, the Federal Council has considerable discretion. However, this is limited by the requirements of the debt brake (→ Art. 126 FC) and by statutory expenditure obligations. The prioritisation of expenditure within these limits is a political decision (Rhinow/Schefer/Uebersax, Schweizerisches Verfassungsrecht, 3rd ed. 2016, N 3654).

N. 16 Proper budget management under para. 2 obligates the entire federal administration. Violations can trigger financial legal liability under the Liability Act (LA, SR 170.32) and result in disciplinary measures.

#5. Disputed Issues

N. 17 In doctrine, it is disputed to what extent the Federal Council is obligated to make corrections in case of obvious misforecasts in the financial plan. Sägesser (St. Galler Kommentar BV, Art. 183 N. 7) takes the view that an obligation to adapt exists if the planning basis has changed substantially. In contrast, Lienhard (Öffentliches Finanzrecht, N 432) emphasises that the political character of financial planning requires wide discretion.

N. 18 The relationship between the Federal Council's financial planning competence and the parliamentary budget right is also controversially discussed. Müller/Feller (Finanzrecht des Bundes, p. 205) see the financial plan as a factual pre-commitment of Parliament, while Tschannen (Staatsrecht der Schweizerischen Eidgenossenschaft, 4th ed. 2016, § 45 N 14) emphasises the unrestricted budget sovereignty of the Federal Assembly.

N. 19 The scope of "proper budget management" is also the subject of doctrinal debates. Waldmann (BSK BV, Art. 183 N. 11) advocates for a broad interpretation that also includes sustainability aspects. Häfelin/Haller/Keller/Thurnherr (N 1861) represent a narrower view that is limited to traditional budget principles.

#6. Practice Notes

N. 20 For administrative practice, early integration into the financial planning process is crucial. New projects and draft legislation must be included in the financial plan with their financial implications before they can be submitted to Parliament.

N. 21 Proper budget management requires an internal control system (ICS) in all administrative units. The Federal Audit Office regularly examines compliance with financial legal requirements. In case of deficiencies, corrective measures can be ordered.

N. 22 For cantonal authorities, Art. 183 FC is relevant insofar as federal subsidies and financial assistance are subject to the requirements of Federal Council financial planning. Multi-year programme agreements must be compatible with the financial plan, which must be taken into account when planning cantonal projects.

Art. 183 Cst. — Case Law

#Preliminary Remarks on the Case Law Situation

Art. 183 Cst. is an organisational law provision that assigns specific tasks in financial planning and budget management to the Federal Council. This norm has not yet become the subject of independent Federal Supreme Court case law. The practical implementation of the obligations standardised in Art. 183 Cst. takes place through the annual financial planning and budgeting processes, which are primarily subject to political discourse between the Federal Council and the Federal Assembly.

#Indirect References in Case Law

#Public Financial Law Principles

Case law has occasionally dealt with general public financial law principles that are connected to proper budget management under Art. 183 para. 2 Cst.:

BGE 110 Ib 148 consid. 1b (5 July 1984)

The Federal Supreme Court held that financial policy decisions of the Federal Assembly are in principle excluded from judicial review. However, the refusal of federal subsidies «in view of the tight situation of federal finances» could exceptionally be arbitrary if statutory entitlement requirements are fulfilled. This consideration illustrates the interface between political financial planning and rule of law constraints.

«The refusal to grant a federal contribution to a specific forest consolidation project in view of the tight situation of federal finances violates good faith and is arbitrary if the Confederation simultaneously subsidises other, less priority projects.»

#Relationship to Parliamentary Powers

The constitutional delimitation between the Federal Council's financial planning tasks (Art. 183 Cst.) and the Federal Assembly's budget powers (Art. 167 Cst.) has not been dealt with in depth in case law. The corresponding procedural questions are specified by the Financial Budget Act and take place within the institutional framework between the executive and legislative branches.

#Cantonal Parallel Norms

In case law on cantonal budget management provisions, principles can occasionally be found that may also be relevant for the interpretation of Art. 183 para. 2 Cst.:

Judgment of the Canton Court of Basel-Landschaft of 22 February 2012 (2C_659/2011)

The Federal Supreme Court confirmed the authority of supervisory authorities to intervene in cases of violations of proper budget management by public law corporations. The considerations on «proper budget management» concern municipal circumstances, but show the legal requirements for dutiful financial administration.

«Proper budget management requires not only compliance with formal procedural regulations, but also appropriate and economical use of public funds.»

#Conclusion on the Case Law Situation

Art. 183 Cst. standardises internal organisational obligations of the Federal Council which by their nature elude judicial review. Compliance with these provisions is primarily ensured through parliamentary control and the political accountability of the government. Direct constitutional court case law on Art. 183 Cst. therefore does not exist and is also not to be expected for systemic reasons.