Last fall, the government presented a historically large reform package of SEK 80 billion. The package included new investments, reduced taxes and reduced food VAT for the 2026 election year. At that time, the state borrowed money to afford it.
But now the fun is over, according to the Minister of Finance.
It is an election year, and many parties will present their reforms, but one should also be aware that a large part of the reform space available in the next term has already been used, says Elisabeth Svantesson.
There will be limited room for unfunded election promises. It is important for the Swedish people to know.
New prisons
She points to major investments ahead that will take up a large part of the budget, including investments in infrastructure, the justice system - especially the construction of new prisons - and defense.
This places demands on us as politicians to make investments in the right things, she says.
The parties must safeguard strong public finances in turbulent times and present how they want to finance their election promises, according to Svantesson, who promises that the Moderates will do so.
You can finance a lot of this with tax increases; the problem is that it inhibits growth. I also think it's bad policy.
It is also possible to finance expenses by reprioritizing and borrowing money again, thus increasing debt. At the same time, the state has a fiscal policy framework to adhere to with a balance target by 2035, under which income and expenses should, in principle, be equal.
I am very determined that we will get back into balance, says Svantesson.
A: Lost control
The Social Democrats' fiscal policy spokesman Mikael Damberg reacts strongly to Svantesson's message.
This is not the first time we have had a right-wing government that leaves behind large deficits, low growth and high unemployment, he says.
Today, the Minister of Finance was forced to confirm that the government has lost control of the Swedish economy.
The Center Party also sees it as a failure for the government.
"Despite an expansionary fiscal policy, the Swedish economy is in the bottom league of the EU. It is sad that the government has wasted so many resources without reducing unemployment and increasing people's real incomes," writes Martin Ådahl, the Center Party's economic policy spokesperson.
On Monday, the Fiscal Policy Council is expected to present the annual review of the government's policy.
