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Can You Make a Government Save Money?

Three countries that found a way to save for tomorrow

Photograph of Silver Coins

Three countries found clever ways to protect tomorrow’s money from today’s spending.


Governments have a built-in temptation: spend the money today and leave part of the bill for later. A few countries have devised clever ways to make that harder to do.


Switzerland put a brake on the budget.


After federal debt climbed sharply during the 1990s, Switzerland decided fiscal restraint needed more than good intentions. In 2001, nearly 85 percent of voters approved a constitutional “debt brake.” Since 2003, federal spending has generally been limited to the amount the government can afford from revenues over the economic cycle. Surpluses during good times help offset deficits during downturns.


Between 2003 and 2019, Swiss federal debt fell by roughly 21 percent, while debt as a share of GDP dropped from 25.3 percent to 13.5 percent. The rules also allow extraordinary spending during crises, as Switzerland did during the pandemic.


Norway had a different problem: what to do with an oil fortune.


Rather than spend its petroleum wealth as it came in, Norway invested it through its enormous sovereign wealth fund. Its fiscal rule says that, over time, the government should spend roughly the fund’s expected real return, currently estimated at 3 percent a year, while preserving the underlying wealth for future generations.


Australia tackled retirement from another direction.


Employers are required to contribute 12 percent of eligible workers’ earnings to individual retirement funds known as superannuation. The money is invested for the worker during his or her career, reducing reliance on government benefits alone to finance retirement. As of July 2026, these contributions are made alongside employees’ regular pay.


The comparisons aren't perfect. Switzerland and Norway have populations smaller than many American states, and discovering an enormous oil fortune isn't exactly a policy option.

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