Minister: state has even less money than we thought
The Social Democrat Finance Minister, Magdalena Andersson, says her new study shows there is even less money in the state coffers than she thought.
When taking up her post after September's election Andersson said "the barn is empty". Now she says things are likely to be even worse, blaming the previous government for using money that was not there for reforms such as tax cuts. To illustrate her point, she quoted a newspaper that had said now "the barn is bleeding".
Sweden's economic growth is now expected to go up by 2.4 percent this year and 2.7 percent next year.
The budget that Parliament voted through last autumn was based on significantly higher figures from earlier forecasts.
The red-green government will now try to deliver higher sick and unemployment pay, as long as they can raise money via taxes or fees.
Since the givernment failed to get its own budget passed by parliament it is not allowed to raise income tax, but can decide to, for example, raise the fees that companies pay per employee.
This article will be updated with more details later in the day.