It is still unclear how the renovation of the Swedish defense will be paid.
Finance Minister Elisabeth Svantesson points out more to the fact that expenditure priorities, increased growth and the balance target in the state budget can result in the billions than that the tax should be increased.
The Swedish defense now costs approximately SEK 138 billion per year and accounts for 2.4 percent of GDP. But this summer, NATO is expected to set up upwards of 3.5 percent of GDP as a target for the member states – which would mean an additional SEK 65 billion for Swedish.
Then the question is of how this should be financed.
It is too early to say, but that we have to do more is obvious, says Finance Minister Elisabeth Svantesson (M) in SVT’s program Agenda.
Lars Heikensten, the Chairman of the Fiscal Council, talks about the need for increased tax.
Svantesson says you should not exclude anything, but she is skeptical:
You raise treasures … it’s not on my favorite list. For the risk, there is then that the pressure against growth and competitiveness is reduced.
She says that GDP growth can redeem billions, about priorities in state expenditure and that the new balance case in the state budget from 2027 can provide defense billions.
Other suggestions are to borrow, but it is also doubtful that Svantesson is doubtful. If this is to happen, it must be a one -off borrowing, she says.
At the same time, Finance Minister breathes confidence and points out that Sweden has a unique political agreement on the main focus and has very strong government finances.
We are on an incredibly strong and solid foundation.