Just now, Sweden’s right-wing caretaker government on Thursday presented a budget bill for 2027, that promises to continue ‘a buildup in defence’ and ‘more investment in transport infrastructure’, but plans to refrain from major new policy initiatives.
According to a report by Reuters, “Government formation talks are still underway (after a general election in September, in which the right-wing bloc lost its majority in parliament,) and the budget bill is thus largely a holding budget without significant reforms.”
The government has also issued a statement that claims, “the budget is based on principles that have been endorsed by all parties in the Riksdag and ensures that necessary state activities can be maintained until a new government takes office.”
Morover, it maintained forecasts of 3.0% economic growth in 2026 and 2.3% in 2027, which is in line with predictions made in October. While the core inflation outlook was seen slightly higher at 1.5% this year, up from 1.3%, and 2.3% next year, up from 1.9%.
According to the Government Offices of Sweden, The Caretaker Government will present the Budget Bill to the Riksdag on 12 November.
Certain Larger Proposals:
- Reinforcement of Sweden’s’ total defence
- An increased age-limit for earned income tax credit for senior citizens
- Plans for investments in transport infrastructure
- Continued additional funding for the Swedish Prison and Probation Service
