Published 8 November 2022 at 14.25
Domestic. Finance Minister Elisabeth Svantesson is now presenting a budget without many of the excesses in grants and compensation for inflation that many had expected. Instead, the state will spend 200 billion plus in the next few years.
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Svantesson says that the government does not want to contribute to holding down inflation and thus undermine the Riksbank's attempts to rein in price increases.
According to the government's main scenario, GDP will fall by 0.4 percent next year and beyond rise by 2 percent in 2024.
But according to an alternative scenario, which is also included in the budget, Sweden's GDP will crash by 1.4 percent next year. Then 200 billion may be needed, for example to save many mortgage holders and over-leveraged companies in the real estate sector.
The spending ceiling is therefore being raised from 1595 to 1825 billion in the coming years. According to the budget, there is thus a buffer of 525 billion to save mortgage borrowers and property companies with tax money, or to “manage the unusually large fiscal risks that Sweden is facing”, as the government formulates the matter in its budget.