Public Subsidies: Application and Appeal

Legal Framework

Federal subsidies: Federal Act on Financial Aid and Compensation (Subsidies Act, SubA). Cantonal/municipal: own legislation.

Definition (art. 3 SubA)

Financial aid (incentive payments) and compensation (for executing federally mandated tasks).

Fundamental Principles

Legality (art. 1 SubA): every subsidy requires a legal basis. Subsidiarity (art. 6 SubA): aid only if the beneficiary cannot accomplish the task alone. Proportionality (art. 7 SubA): amount proportionate to public interest and actual needs.

Application Procedure

Application to competent authority with: project description, detailed budget, justification of need, financing plan. The authority verifies conditions (discretionary for some subsidies, automatic for others). Formal decision (art. 16 SubA) fixing amount, conditions and charges. Art. 13 SubA requires periodic review.

Beneficiary Obligations

Conforming use (art. 37 SubA): must use subsidy for its designated purpose. Reporting (art. 25 SubA): provide justification and submit to controls. Restitution (art. 28 SubA): if obtained improperly, conditions not met, or funds not used conformingly. Prescription: three years from knowledge, maximum ten years from grant (art. 32 SubA).

Contesting Refusal

Refusal is an administrative decision subject to appeal. Federal: FAC within 30 days (art. 50 APA). Cantonal: cantonal remedies. Court shows restraint when the authority has discretion, remanding rather than ordering the subsidy.