The Social Democrat and Green Party government relies on votes from the Left Party to get their budget through parliament and is currently in talks with the party over the upcoming spring budget, which will be presented and voted on in April.
The government and the four parties in the centre-right alliance agreed to expand RUT last fall, as part of the cross-party deal on migration, but the Left Party has spoken out against the deduction and wants the government to leave it as is.
Finance Minister Magdalena Andersson did not want to comment as the budget talks are still ongoing, but according to Swedish Radio sources the government is not ready to make any concessions to the Left Party's demands.
"We will honour our agreement with the centre-right parties and will do exactly what we said we would," says a government source to Swedish Radio News.
Representatives from the centre-right alliance have since said the cross-party deal on migration will fall if the government sides with the Left Party over the RUT tax deduction expansion.
"I expect that the Prime Minister honours his side of the deal and sees this agreement as a package deal and nothing else," Johan Forssell the Moderate Party's spokesperson on migration tells Swedish Radio News.