Finance Minister Svantesson to unveil budget reform space expected at 65 billion kronor in Sweden

Elisabeth Marmorstein, a political commentator, anticipates that the government’s message will focus on encouraging investment in Sweden. She expects a reiteration that inflation control has concluded, allowing for a shift in fiscal policy to spend more in support of the Swedish economy and to stimulate growth. Marmorstein warns, however, that the challenge lies in not over-investing to avoid hindering the Riksbank’s promised interest rate cuts.

On Thursday, Finance Minister Elisabeth Svantesson is expected to reveal the extent of the so-called reform space in the budget, which refers to the sum allocated for unfunded measures. Last fall, the government allocated 40 billion kronor, a figure that was significantly increased in the spring budget adjustments.

The Swedish Enterprise organization is calling for an “aggressive” budget and believes the reform space should be raised to 65 billion kronor. While the Economic Institute predicts 50 billion, Marmorstein thinks it may be higher, possibly between 55 and 60 billion.

Among the potential budget initiatives being discussed are investments in education and healthcare, a repatriation grant, and various tax reductions, including the controversial aviation tax. Reports suggest that discussions are underway to not only halve the aviation tax but to abolish it entirely.