Households to Benefit from Billions in 2026 Budget Prioritization

Households are prioritized when the government negotiates the state budget for 2026. Reduced tax, increased child allowance and reduced food VAT are being discussed.

» Published: August 26 2025 at 06:06

Households to Benefit from Billions in 2026 Budget Prioritization
Photo: Fredrik Sandberg/TT

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The Government will meet at Harpsund on Thursday to finalize the negotiations on the budget proposal 2026. Last year, 60 billion kronor was allocated to new initiatives in 2025. It would be no surprise if the Government invests at least as much for the election year 2026.

How the billions will be used will be presented gradually over the coming weeks. But households can already count on being favored in the budget. All government parties and the Sweden Democrats agree that they should be prioritized.

Hardworking people should feel that it's their turn, that we see that it has been tough years for them and that we want to make it easier for them. That's the most important thing, says Elisabeth Svantesson (The Moderate Party).

The Moderate Party would like to invest in a new job tax deduction. Increased child allowance is also possible, according to Svantesson.

Increased child allowance?

For us, it's very important that this budget takes care of families' economic situation, says the Christian Democrats' (KD) economic policy spokesperson Hans Eklind.

He states that KD was critical of the temporarily increased housing allowance disappearing last summer. According to Eklind, increased child allowance would be a good way to support families.

The Sweden Democrats do not want to comment on ongoing negotiations, but party leader Jimmie Åkesson spoke in the spring about temporarily reducing VAT on basic goods in food stores during a period.

KD does not rule out reduced food VAT, but Eklind points out that a general reduction is an expensive measure.

If one could, like Spain, ring-fence the type of food that one knows people need, then it won't be quite as expensive. Then it becomes a even more interesting measure, he says.

KD is also pushing to strengthen the economy of pensioners.

More key issues

The Liberals also think it's important to support households and are open to both a new job tax deduction and increased child allowance.

But we will always prioritize school first, says The Liberals' economic policy spokesperson Cecilia Rönn.

It's, according to her, extremely important to reduce unemployment in the long term, reduce segregation, and strengthen Sweden's competitiveness. Which school investments The Liberals are driving, Rönn does not want to reveal.

Besides supporting households, the key issues for the Sweden Democrats are law and order policy and for KD healthcare.

We must start shortening healthcare queues. It's something we went to the election on and that's what we also want to deliver on, says KD's Hans Eklind.

Strengthening companies' competitiveness is a priority for several parties, and a proposal to reduce corporate tax was sent out for consideration in the spring.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers
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