Sweden’s 2027 Budget Extends Current Policies, Boosts Defence Funding and Holds Cigarette Taxes Steady

Today, Finance Minister Elisabeth Svantesson (M) is presenting her budget bill for 2027.

Under an agreement between the parties in parliament, the bill contains no election promises or new policies while Sweden waits for a new government. It is a budget to keep the country running.

Regardless of whether forming a government takes significantly longer, Sweden and our core government activities, municipalities and regions will have the resources to continue doing so, says Svantesson.

The Swedish economy is doing well, the finance minister says.

Whoever forms the government will come to a table that is set, says Svantesson.

Will miss out

In general, the transitional budget means this year's budget is extended into 2027, with the necessary increases in appropriations to cover higher salaries and costs.

Various benefits linked to the price base amount will increase, and the income threshold for state income tax will be raised as usual.

However, the police will miss out on a 2.8 billion kronor increase in funding that the outgoing government had previously announced.

A 1.5 billion kronor increase in funding for research will also not go ahead.

Other previously announced but unimplemented measures include 400 million kronor promised to shorten healthcare queues and 150 million kronor for universities of applied sciences.

Schools, on the other hand, can be glad to avoid an announced 1 billion kronor cut to government support for knowledge development. Municipalities and organizations seeking support for climate investments will also avoid a 500 million kronor cut to the government's Klimatklivet initiative.

Smokers will avoid a planned small increase in tobacco tax, which would have brought in 300 million kronor for the treasury in 2027.

Not too late

It is not too late for a new government to fulfil costly election promises as early as next year. Once such a government takes office, it can present supplementary budgets at the beginning of next year.

The main limitation for a new government presenting a supplementary budget is that income tax changes would have to wait until 2028.

However, the Riksdag could push through changes to the budget bill when it is considered before early December.

The budget framework is to be hammered out on 9 December.