Mats Knutson on the budget: Difficult financial situation for the government

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When Finance Minister Elisabeth Svantesson (M) presents the budget bill for 2023 on Tuesday, it is with a strong emphasis on a declining economy and rising inflation.

SVT’s domestic political commentator Mats Knutson is on the same line.

– It is a difficult economic situation that the government must deal with when presenting its proposals, he says in SVT’s live broadcast.

According to Knutson, today’s budget presentation is “extremely interesting” as it is the new government’s first.

– We will look very carefully at whether you fulfill the promises you went to the election on, and on which you actually won the election, he says further.

Among other things, state subsidies will be increased by NOK 6 billion per year for the next three years. Which is something SKR requested.

– It must meet SKR’s requirements. They have said they want 20 billion more to deal with inflation and increased prices, says Knutson.

“Will sound from two directions”

He also expects that the budget will receive criticism. Just as recently as last night, the government announced that the climate car bonus will disappear.

– It will sound from two sides. One is that not enough is being done about what was promised in the election campaign. The second criticism is that these changes, above all in the areas of climate policy, will lead to increased emissions and that Sweden will not meet the climate goals, says Mats Knutson.

– There are a number of different starting points on which the opposition and experts will question this budget.

No tax reduction

Among other things, he points to the tax cuts that were promised during the election.

– The moderates went to the polls on reduced income tax and reduced employment tax deductions. On the other hand, there will be an extended employment tax deduction for the elderly, i.e. for pensioners who want to be stimulated to work more after retirement. But the big tax cut that the Moderates talked about before the election will be nothing this time, says Mat’s cousin.

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