Investments and tax credits in spring budget
Sweden's center-left coalition government unveils its supplementary spring budget on Wednesday, and it is expected to contain a mix of new tax credits and a proposal to pump billions into the nation's local counties and municipalities.
Finance Minister Magdalena Andersson will formally present the budget proposal during a Wednesday morning press conference. The government has until Friday to hand over its proposal, known as its spring fiscal policy bill, to Parliament.
The bill is expected to contain an injection of an extra SEK 10 billion to Sweden's local governments to help them cover the rising costs of education, health and welfare services. The government has also promised to give public libraries SEK 11 million.
The policy bill contains the government's forecast of Sweden's economic situation over the next few years. It also sets out proposals on the long-term priorities of the government's budget policy and serves as the lead-up to the nation's main budget bill put forth in the autumn.
It is believed that the bill will also have several new reductions with an environmental bent for taxpayers. The value-added tax on minor repair work on bicycles, shoes, leather goods, clothing and household textiles will be lowered from 25 percent to 12 percent. It is also predicted the bill will offer a tax credit on labor costs for repairing and maintaining home appliances.
The so-called RUT tax break, which offers tax deductions on labor costs for housework, will likely be expanded to include moving services, IT work at home and other gardening work.
The financial bill will also raise the threshold for the state income tax. The tax will likely only apply to income that exceeds SEK 438,400 in 2017.
The Social Democrat-Green Party government has yet to explain exactly how the budget will be financed, though it has won the support of the Left Party, meaning the government's proposal will likely survive the debate in Parliament.
The spring budget is not as important as its fall counterpart, though it does give a good indication of the path the government wants to take. The Swedish parliament will vote on the spring budget proposal in June.