Sweden‘s right-wing coalition announced an 80 billion crown ($8.5 billion) budget for 2026, aiming to boost growth ahead of the general election next September.
The country’s strong financial health, with low government debt, sets it apart from other European nations grappling with high debts. Finance Minister Elisabeth Svantesson emphasized Sweden’s solid finances and ability to utilize that strength.
The budget includes tax cuts for workers, pensioners, and companies, lower VAT on food, and increased funding for defense. Additionally, there are allocations for schools, healthcare, civil defense, and higher housing allowances for low-income families.
Despite a sluggish economy and uncertainties from global trade issues and previous inflation rates above 10%, Sweden’s government debt is about 32% of GDP, lower than the European average of around 90%. The spending plan may reduce the pressure on the central bank regarding interest rate cuts, with a decision on rates expected on September 23.
With information from Reuters