Sweden's caretaker budget bill promises more money for defence, transport

Sweden's 2027 Caretaker Budget Supports Defence and Transport Spending

Overview of Sweden's 2027 Budget Bill

Introduction to the Caretaker Budget

STOCKHOLM, Nov 12 (Reuters) - Sweden's right-wing caretaker government on Thursday presented a budget bill for 2027, promising to continue a buildup in defence and more investment in transport infrastructure, but refraining from major new policy initiatives.

Political Context and Government Formation

Government formation talks are still underway after a general election in September, in which the right-wing bloc lost its majority in parliament, and the budget bill is thus largely a holding budget without significant reforms.

Government Statement

"The budget is based on principles that have been endorsed by all parties in the Riksdag and ensures that necessary state activities can be maintained until a new government takes office," the government said in a statement.

Economic Forecasts and Inflation Outlook

Growth Predictions

It maintained forecasts of 3.0% economic growth in 2026 and 2.3% in 2027, in line with predictions made in October, while the core inflation outlook was seen slightly higher at 1.5% this year, up from 1.3%, and 2.3% next year, up from 1.9%.

Reporting Credits

(Reporting by Anna Ringstrom, editing by Terje Solsvik and Louise Rasmussen)