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New Swedish government to cut fuel taxes, boost defence, police in budget
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STOCKHOLM (Reuters) – Sweden’s new right-wing government will cut fuel taxes and give extra cash to the military and police in its first budget since winning a general election in September, it said on Monday.
STOCKHOLM (Reuters) – Sweden’s new right-wing government will cut fuel taxes and give extra cash to the military and police in its first budget since winning a general election in September, it said on Monday.
With Sweden’s economy expected to slip into a mild recession next year, the Moderates and Christian Democrats – along with two parties that support them in parliament – said fiscal policy would have to be responsible in the coming four year period.
“The starting point for the budget is to make sure that the Swedish economy can withstand the difficult economic times that are ahead of us,” the four parties said in an article in Dagens Nyheter newspaper.
“High inflation argues for restraint in fiscal policy.”
The four parties gave no figure for how much the main budget measures would cost or by how much the government would increase spending.
However, the government has previously said it would cost around 6.7 billion Swedish crowns ($620 million) next year to cut fuel taxes, with an extra 5 billion to go to defence and around 5.8 billion for maintaining higher levels of unemployment insurance introduced during the coronavirus pandemic.
The budget is due to be announced at 0700 GMT on Tuesday.
($1 = 10.8254 Swedish crowns)
(Reporting by Simon Johnson; editing by Grant McCool)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation to maintain economic stability.
A recession is a significant decline in economic activity across the economy, lasting longer than a few months. It is typically reflected in GDP, income, employment, and production.
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