On Tuesday, Finance Minister Elisabeth Svantesson (M) will present the spring budget. Among the content that has already been made known, only the proposal for increased tax deductions for home repairs can affect households' economy in the short term, notes Shoka Åhrman.
The tax deduction for home repairs is a wallet issue. But not really for everyone, since it is often used by those with higher incomes.
She receives support from Américo Fernández, private economist at SEB, who also points out that the proposal is not primarily intended as a wallet measure.
It's more about getting the construction sector going, he says.
Not Unusual
That there are few wallet measures in the spring budget is not unusual, according to Åhrman.
Spring changes usually affect the economy on a broader scale. It's not so common with concrete private economic changes, she says and continues:
On the other hand, the previous decisions on reduced tax on work and pensions will remain.
Another previous wallet decision is the temporary housing allowance for families with children. It is planned to apply until the summer. Whether it will be extended is not yet clear.
It can mean a lot for some households since many have had it tough with increased rents and price increases on basic goods, says Åhrman.
In order for the government to take bold action when it comes to wallet measures, the economy needs to be worse than it is now, believes Américo Fernández.
There is certainly economic uncertainty, not least considering the recent stock market turmoil. But so far, it has not been reflected in worse economic figures for Sweden. It may well become so in the future, but then the wallet measures will come later, not now.
"More Targeted"
At the same time, he believes that there are measures that the government could have proposed in the spring budget to reach those most in need.
For example, a maintenance support for single parents. It is a reform that is relatively inexpensive for the government to implement. Moreover, it is more targeted than, for example, child benefits that go to all families.
Just extra child benefits were proposed by the government in the spring budget, but it was voted down by the Sweden Democrats, according to sources to SVT.
Based on the proposals that have been communicated so far, Shoka Åhrman believes that it is rather monetary policy, with a possible interest rate cut, that will affect households' economy in the near future.
