...Credit context and assumptions Base-case expectations Basel-Country benefits from a strong national and local economy, with a robust tax base. Budgetary performance will remain affected by weaker revenue and expenditure pressures, particularly in health care and education. However, the canton is currently experiencing a period of financial strain mainly due to a shortfall in its share of direct federal tax and withholding taxes, as well as the absence of payouts from the Swiss National Bank. However, we anticipate that the canton's planned implementation of austerity measures, combined with the prevailing economic conditions, will enable balanced budgetary outcomes through 2026. We expect compliance with the debt brake rule will constrain expenditure, reflected in the implementation of various cost-saving measures. We expect debt to keep decreasing, albeit at a slower pace than in previous years....
