Speaking to Swedish Radio news, deputy head of the Association of Local Authorities and Regions Lennart Gabrielsson points out that many municipalities suffer from the economic downturn which could lead to higher taxes in order to keep budgets balanced. It will all depend on how much money the government intends to spend on economic stimulation on the local level, Gabrielsson added.
Finance Minister Anders Borg had announced earlier that due to signs of a recovery of the Swedish economy, the next state budget might be more flexible to support municipalities.
According to some experts, Borg’s announcement is necessary but it might have come too late for some ailing local budgets. (ah)