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Surplus budget goal to stay

Published onsdag 7 februari 2007 kl 12.23
Finance Minister, Anders Borg

Sweden’s Finance Minister has disappointed economists by saying the government wants to stick to its predecessor’s 2 per cent budget surplus goal during its mandate period.

A former central bank governor had also hoped the new government would abandon the target to cut taxes and create more jobs, but Finance Minister, Anders Borg, says they definitely will not be.

The goal was brought in by the previous Social Democratic-led government, after the financial crisis in the 1990s and it is credited with making sure that Sweden’s public finances have stayed in the black in recent years.

Meanwhile, Sweden’s National Financial Management Authority has lifted its forecasts steeply. It is predicting a 5.8 billion dollar surplus for 2007, because of strong economic growth, high employment and low inflation.

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