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economy

Government leaks Spring budget plans

Published tisdag 12 april 2011 kl 14.56
"It's more of the same"
(4:34 min)
Finance Minister Anders Borg will present the official Spring Budget tomorrow. Photo: Bertil Ericson/Scanpix

Tomorrow sees the Spring Budget presented to the Swedish parliament, where the centre-right government will present some of its economic plans for 2012, and thanks to the booming state of the Swedish economy, that may well include more tax cuts, according to an opinion piece in a Swedish daily.

In today's Dagens Nyheter newspaper, the four centre-right party leaders say the current state of the Swedish finances means that they can live up to some of their recent election promises. There are estimates that due to the current high economic growth, the Swedish treasury could enjoy a budget surplus of almost US$ four billion. That's money the government mainly wants to spend on tax cuts for both the employed and pensioners.

"We want to give the signal to the general public that has to get up every morning to go to their jobs that it pays to work in this country", Prime Minister Fredrik Reinfeldt says.

Another tax reform in the pipeline which has been widely promoted by the small Centre Party may also be introduced next year, is reducing sales tax for restaurants, so that it will no longer make a difference if you choose to eat in, or take away. That's something the government hopes may also create more jobs in the restaurant and catering industry.

But it is not all about taxes. In the opinion article the government says it wants to raise the amount of capital banks have to own, to make them more resilient against future financial crises, it also wants to invest more cash into the education system. The opinion article doesn't give any real details, however, those will come tomorrow.

Pontus Mattsson, political reporter at Swedish Radio's Studio Ett programme, says that although the Spring Budget is not as important as its' Autumn counterpart, it does give a good indication of the path the government wants to take. He also tells Radio Sweden that even though the centre-right government is a minority in parliament, the budget will likely pass through, as to defeat the bill, the opposition would have to come up with a joint proposal. Mattsson says there is no way the red and green parties would negotiate with the Sweden Democrats to produce such a plan.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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