Svantesson Aims for Budget to Boost Election Success

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Svantesson Aims for Budget to Boost Election Success
Photo: Fredrik Sandberg/TT

The Minister of Finance hopes that the budget will get the voters to give the government new confidence in the election and feel that Sweden is on the right track. We are not entirely there and therefore more years are needed, says Elisabeth Svantesson (The Moderate Party).

Over half of the new initiatives of 80 billion kronor in the budget for 2026 will end up in households' wallets.

The opposition, which will present its budget motions in a couple of weeks, calls it election pork.

It will be interesting to see if they will put less in reform space. It remains to be seen what they think of doing instead, says Svantesson.

She explains the large initiative for households' wallets by saying that many have had it tough economically.

We want this to give a boost, wind under the wings, to look positively at the future, says Svantesson.

A ordinary family with two small children can get around 1,800 kronor more per month, according to the government's calculations.

This is an incredible injection into a household economy, says Svantesson.

Need to do more

However, it's not just about supporting households. The government also hopes that tax cuts, reduced food VAT and lower preschool fees will get people to consume more and thus get the Swedish economy going.

Sweden is in a prolonged low-conjuncture, which is expected to continue even next year, according to Svantesson. But she still hopes that it will start to turn upwards in 2026. She dares not predict when the next high-conjuncture can be here.

But we do what we can, says Svantesson.

She points out that even government investments, primarily in defense, contribute to getting the economy going.

According to the Ministry of Finance's calculations, the government's policy during the term of office has strengthened households' purchasing power, despite a total inflation of 13.1 percent.

Want more

It's been three years since we took office, we've got a lot done, but we need to do even more. My and our focus is to win the next election, says Svantesson.

According to her, there is money left to do more.

Despite the fact that the public deficit next year is expected to be 167 billion kronor, the Minister of Finance is not worried. According to the forecast, balance will be reached again in 2028, if you exclude defense investments and Ukraine support. The national debt will remain at just over 36 percent of GDP, which is very low internationally.

Svantesson wants to see, among other things, that Sweden gets a growth "in world class" next term of office, so that Swedish companies stay and grow here. She understands that there are some in the business community who are disappointed with the budget.

I understand that they want more. I would gladly lower the corporate tax next term of office. We are not finished, says Svantesson.

HOUSEHOLDS: 47.6 billion, of which:

New job tax deduction: 21.4 billion

Reduced food VAT: 15.94 billion

Reduced electricity tax: 6.52 billion

High-cost protection for electricity prices: 1 billion

Reduced preschool fees: 1 billion

Increased ceiling for housing allowance: 0.73 billion

Reduced tax for Swedes abroad: 0.34 billion

Reduced tax, sickness benefit: 0.46 billion

Abolished vehicle tax for caravans: 0.19 billion

WELFARE: 10.4 billion, of which:

School: 3.3 billion

Health care: 5.9 billion

- Dental care: 1 billion

Increased quality in elderly care: 0.21 billion

ENTERPRISE: 9.4 billion, of which:

Reduced employer contribution for young people: 6.05 billion

More favorable tax rules for small businesses: 1 billion

Support for agriculture: 1 billion

AI and digitalization: 0.54 billion

CRIME PREVENTION: 2.6 billion, of which:

Penal care: 0.86 billion

SIS homes, etc.: 0.88 billion

Measures against criminals' economy: 0.66 billion

ENVIRONMENT AND CLIMATE: 3.5 billion, of which:

Climate leap: 1.5 billion

Protection of nature and sea: 0.76 billion

Environmental compensation, rail transport: 0.34 billion

Energy efficiency of small houses: 0.3 billion

Nature conservation, forest and land: 0.9 billion

OTHER: 6.8 billion, of which:

Grant reform: 1.45 billion

Civil defense: 1.22 billion

Establishment of new nuclear power: 1.18 billion

Strengthened cyber security: 0.37 billion

Migration and integration: 0.4 billion

Initiatives for reduced unemployment: 0.64 billion

Reduced dance band VAT: 0.22 billion

Support for more sports facilities: 0.25 billion

TOTAL: 80.3 billion

SAVINGS: -1.5 billion

NET: 78.8 billion

Source Budget proposal 2026

Sweden's GDP is expected to grow by 0.9 percent this year, to increase by 3.1 percent next year and 2.5 percent in 2027.

Unemployment is expected to decrease to 8.3 percent next year, from 8.7 percent this year. In 2027, unemployment is expected to fall to 7.8 percent, according to SCB's way of measuring.

Source: The Government

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By TTEnglish edition by Sweden Herald, adapted for our readers

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