SAEDNEWS: Sweden's 2026 budget will inject about 80 billion crowns ($8.50 billion) into the economy, the government said on Monday, with the right-wing coalition hoping to speed up sluggish growth ahead of a general election next September.
Sweden’s government has rolled out its most expansive budget since the pandemic, aiming to put more money directly into citizens’ pockets while strengthening the country’s long-term resilience.
“The strength of Sweden's state finances is now being used to ensure that hard-working people get more money in their wallets,” the government said in a statement, adding that the move could restore confidence and end the recession.
The budget includes tax cuts for workers, pensioners, and companies, a lower VAT on food, and expanded defense spending. More funds are also allocated to schools, healthcare, civil defense, and housing allowances for low-income families.
While many measures had been flagged earlier, the final package underscores Sweden’s unique fiscal position. Unlike other EU economies weighed down by high debt, Sweden maintains a government debt of around 32% of GDP, compared with nearly 90% across Europe.
Even with plans to boost defense spending to 3.5% of GDP and borrow 220 billion crowns to fund new nuclear power plants, Sweden’s debt is expected to stay below 35% of GDP—a signal of fiscal strength in uncertain times.
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