Sweden’s right-wing government increases its defense spending to the level demanded by NATO. Cuts are coming, for example, to cultural spending.
STOCKHOLM Sweden next year core figures of the budget are these. The total amount of the budget is 112 billion euros, and it has a deficit of 590 million euros.
Total production, or GDP, will go into the red this year. One percent growth is predicted for next year, the growth rate for 2025 is 2.9 and the following year 3.1.
Unemployment will rise to more than 8 percent next year and the following year.
The government invests in defense
The biggest growth figures in the budget are clearly in defense.
Next year, Sweden will spend 10 billion euros on defense, and this year’s increase is as much as 28 percent. This is how Sweden has doubled its defense spending compared to 2020. Next year’s amount will meet the goal set for NATO countries, i.e. two percent of GDP.
Gasoline and diesel taxation will be reduced
The government lowers the gasoline tax by more than 6 cents per liter and the diesel tax by just under 4 cents per liter. In practice, however, the price of diesel will rise from this year, as the subsidy will be calculated differently next year than it is now.
The government admits that carbon dioxide emissions will turn to a clear increase. Already in the past, the government has relaxed the distribution obligation, i.e. the requirement that a certain part of the delivered fuel must be renewable.
More money for municipalities and regions
The government adds a total of 1.4 billion euros to municipalities and regions. The municipalities are responsible for education and the regions for health care. The extra money does not fully cover the additional costs caused by inflation.
Tax relief for low and middle income earners
In the budget presentation, taxation of low- and middle-income earners who work full-time will be reduced by increasing the income deduction. The impact on the government’s tax revenue is well over a billion euros per year.
The taxation of pensioners will also be reduced.
The increased housing allowance for families with children will be continued next year.
More prison places and youth prisons
In Sweden, which is plagued by gang violence, the government is increasing the appropriations for the judiciary and prison care by around 600 million euros. Among other things, more prison places will be built with them.
A cultural finder in today’s money
The culture budget will remain at this year’s level, i.e. around 760 million euros. It is disappointing for many museums, because inflation has increased the rents so that there is less and less money left for the actual operation.
Support for those who give up mink farming
In 2024 and 2025, the government will support entrepreneurs who voluntarily give up mink farming. 15 million euros have been set aside for this.