On Tuesday, Minister of Finance Elisabeth Svantesson (M) will present the first budget of the government and the coalition party SD.
Svantesson has previously described the budget as “somewhat tightening” and believes that it is now important to be restrained in order not to blow up inflation.
Expensive to support households and businesses
Many election promises must now be delivered, but also financed. So far, the government has announced proposals that take approximately 27 billion of the space of just over 37 billion kroner that one can have to play with. Around SEK 7.5 billion of the space is created by the fact that aid is not counted and that the reception of quota refugees is reduced from 5,000 to 900.
Some of the most expensive proposals will support households and businesses.
One example is reduced tax on petrol and diesel by SEK 6.7 billion, but this is far from what several of the right-wing parties talked about in the election campaign. However, there is a risk that investments and proposals drive inflation, which affects households and businesses in the form of higher prices and interest rates.
SKR wants to see state subsidies
Market reactions to the outgoing British Chancellor of the Exchequer’s first and only budget sent shockwaves through the world’s finance departments. The assessors wondered how the big tax cuts would be paid for. In Sweden, Riksbank governor Stefan Ingves has warned the government against doing something that repeats that mistake.
Municipalities and regions have a gloomy view of the coming years and, according to Sweden’s municipalities and regions (SKR), want to see 20 billion in increased state subsidies. It is needed to keep up with increased prices and to avoid sharp cuts.
– Of course we need to prioritize welfare, justice and defence. Those are the important parts of the budget, says Svantesson, who does not want to say anything about state subsidies.
Reduced tax on ISK accounts
She also does not want to answer the question if there will be any tax reductions in addition to the fuel tax.
There may be more proposals that affect household finances that have not yet been presented. The governing parties and SD have promised reduced taxes on income and pensions in the coming years, but here too there is a risk of fattening inflation.
The government also aims to lower the tax on savings in so-called ISK accounts during the mandate period, but there will be no sharp proposal about that now, TT learns.