It has pledged a new SEK 4.5 billion to four key areas including employment, the environment, welfare and national development. Spending includes support to farmers during extreme weather conditions and supplying broadband to the whole of Sweden.
The largest allocation of SEK 2 billion kronor went to fighting climate change and the government's pledge to ween Sweden off of fossil fuels.
There are some changes to 2018's budget brought in by the Moderate-Christian Democrats. For example, Sweden's flight tax will remain in place and entry at state-run museums will remain free. But the biggest change is the restoration of environmental funds cut in the autumn budget.
Reactions to the government's proposal were quick. The Left Party leader Jonas Sjöstedt took to Twitter and unleashed an attack on Centre party leader Annie Lööf, saying the budget kept tax breaks for the rich and was increasing inequality. Lööf denied the accusation, saying "the Left party has an odd definition of inequality."
Sweden Democrat's economic spokesperson, Oscar Sjöstedt, said he was not impressed by the budget, saying money set aside for elderly care and accomodation has now been cut.