In its 2024 budget released on Wednesday, the Swedish government pledged tax reductions as well as increased funding for welfare, defense, and the criminal justice system, but warned that expenditure would need to be constrained in order to keep inflation under control.
According to a statement by the finance minister, Elisabeth Svantesson, “Sweden continues to be in an economic winter and in a challenging security situation.”
“The government gives fighting inflation, helping families, and welfare top priority.”
To aid those most negatively impacted by rising costs and interest rates, the budget includes an increase in in-work tax credits as well as a reduction in gasoline charges.
Pensioners will pay slightly less tax as a result of the additional 16 billion crowns ($1.43 billion) that local authorities will get to continue providing welfare services.
The right-of-center coalition has had to contend with an unsteady foreign landscape since assuming office last year. After Russia’s invasion of Ukraine halted and protesters burned Korans, Sweden’s candidacy to join NATO was rejected by the Muslim world.
According to Svantesson, defense spending will increase in 2019 as Sweden works to fulfill the NATO target of 2% of GDP. The overall increase, according to prior government estimates, will be 27 billion Swedish crowns in 2024.
An additional boost is provided to the police and criminal justice system.
The majority of the actions, which are anticipated to raise total spending by about 39 billion crowns the next year, have previously been publicized.