Municipalities are “hitting the brakes” to counter the low economy

Sweden is heading into a recession. It is noticeable in the spring financial report from SKR. After several years of good finances and strong financial results, the situation has been reversed. The municipalities and regions are estimated to go back 24 billion in total in 2023.

Valdemarsvik is one of many municipalities that have now started to change.

– In the emergency situation, you have to hit the brakes but also come up with proposals on how to get the economy in order, says Per Hollertz (M), who is a municipal councilor in Valdemarsvik.

This year, the majority of the regions and every sixth municipality are budgeting with a negative result. According to SKR’s report, it is primarily cost increases due to inflation that create problems. The municipalities have also received increased pension costs.

– Our pension costs have increased by 18 million in one year and we expect that 14 million is due to inflation, says Per Hollertz.

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