Svantesson Announces 80 Billion Kronor Budget Initiatives for 2026

The Government will make investments of 80 billion kronor in the budget for the election year 2026. A large part will go to "families and hardworking people". This low-conjuncture must be broken, says Minister of Finance Elisabeth Svantesson (The Moderate Party) at a press conference at Harpsund.

» Published: August 28 2025 at 15:17

Svantesson Announces 80 Billion Kronor Budget Initiatives for 2026
Photo: Henrik Montgomery/TT

Share this article

The amount is historically large and larger than most forecasters have counted on.

We will focus most on families and hardworking people so that they can feel confidence in the future, says Elisabeth Svantesson.

Getting Swedes to consume more is, according to her, the key to getting the economy going again, after a long-lasting low-conjuncture.

There will be a lot of tax cuts, targeted at households, but also at companies, she says at the press conference. The negotiations between the Tidö parties about the billions have gone "very well" according to Svantesson. Despite this, she does not want to be particularly specific about what the billions will go to - that will be served by the government and the support party Sweden Democrats in stages until the budget proposition on September 22.

Lowering taxes is a way to facilitate people's everyday lives.

We have Sweden and the Swedes in our sights.

However, the tug-of-war over what to invest in is not entirely clear.

"Brutally strong state finances"

Part of the 80 billion that will now be invested in new initiatives - according to Svantesson, both temporary conjunctural measures and structural measures - will require the state to borrow more money.

But it's not like the national debt will increase dramatically. It's a well-balanced policy in a low-conjuncture.

The Minister of Finance also tones down the state financial risks associated with the initiatives during the press conference.

We have brutally strong state finances, she says.

If they are brutally strong, is 80 billion then not too little?

- I feel that this is a well-balanced budget. It will make a difference for people all over Sweden, claims the Minister of Finance.

Great uncertainty

According to Svantesson, the uncertainty surrounding the economy is great after the pandemic, the inflation shock, the Ukraine war, and the Trump administration's tariffs. She points out, among other things, that Swedish households have lost a lot of purchasing power in the inflation shock and are not expected to return to previous levels until 2028-2029.

The government expects growth to rise to 3 percent in 2026, up from this year's growth of 0.9 percent.

Loading related articles...

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers
Loading related posts...