"The outcome for the government budget has been considerably better than expected last year and in the start of this year," says Jan Häggström, chief economist at Handels bank, "and that's why the government comes back already now and says not only do we want to [cut taxes] but we can do it without risking the public finances."
The center-right coalition, led by the Moderates, is hoping to cut income taxes, as well as raise the ceiling for high-earners before their extra tax comes in. They also want to cut the restaurant sales tax in half to 12 percent.
There is also a provision to cut taxes for pensioners, letting them keep an extra 15 US dollars, on average, in their pockets a month.
Pensioners and those with a full-time job are the main winners, Swedish Radio News reports.
The government predicts a 3.8 percent growth next year and the hope is that the tax cuts will create more jobs and lower the fairly high unemployment rate down to under 5 percent in the next four years.
But the proposed budget and Sweden’s strong economy also gives room for changes in the national insurance system, which has been widely criticised for punishing people who need long-term treatment.
Sweden's national debt is a bit over a third of the GDP, which is relatively low compared to some other European countries. But the government wants to pay back more than half of that over the next few years.