It says that in the coming year, voluntary troops will take over from national conscripts, a system which will end this summer and Sweden's military will as a result become more flexible, streamlined and react quickly to any situation.
To complete the changes, the armed forces needs to take away unneccessary costs such as training places which are no longer needed.
Total savings are estimated at around 800 million kronor (112 million dollars.)
In recent years, a number of army and aircraft bases have closed to save money and reshape Sweden's defence outlook to a more rapid . "professional " reaction force. Sweden at present has no professional standing army.
It's troops are currently serving in Afganistan and a service was held in Stockholm on Friday for one of the troops killed in action.