The view from Vaud
Lausanne, Switzerland (GenevaLunch) – The Vaud cantonal government said 27 October that it projects annual budget deficits of between CHF70 million to CHF360 million over the four years from 2011-2014, the result of its periodic review of cantonal finances. In part, it says, the revision is a reflection of the economic crisis that affects everyone.
Switzerland’s GDP is expected to rise only 0.4 percent in 2010. In Vaud, tax receipts are projected to rise an average of 1.5 percent annually for the foreseeable future, less than expected earlier. Unemployment is sure to rise, further straining the canton’s finances. The deficit is expected to rise by CHF1.8 billion until 2014 with an attendant interest service cost of CHF95m.
Harvard and Yale universities posted heavy losses in their endowment funds in the fiscal year to 30 June. Harvard lost $11 billion, or 27.5 percent, and Yale lost 30 percent to $16b. The university endowment funds invested heavily in hedge funds and private equity, which have suffered during the financial crisis. Both universities have responded by cutting costs and curtailing planned investment. Harvard has laid off staff and is stopping an ambitious construction project. Yale has projected a $150 million operating budget deficit for the next three years. The universities’ investment managers were among the world’s top investment performers over the past 10 years. Harvard Crimson, Reuters
