Analyst: Sweden's draft budget historic but also expensive

5:59 min

The government is describing its draft budget for 2021 as "historic" and "powerful". One analyst agrees but says it's also an expensive one.

The government's proposal, which was negotiated with the Liberal and Centre parties, would inject an extra SEK 105 billion into the Swedish economy as it battles the coronavirus pandemic.

Jens Magnusson, who works in personal finance at Sweden's SEB bank, says it makes sense for the country to boost spending during a crisis. But, he adds, much of that is financed by increasing the national debt.

Click play to hear the interview.