Sweden announces 27.2 billion kronor initiative to boost household finances amid inflation concerns

After several years of declining purchasing power, the government is launching a significant initiative to bolster household finances. According to financial expert Stefan Westerberg, the total investments aimed at enhancing purchasing power amount to 27.2 billion kronor. “This reflects the fact that we have lost about a decade’s worth of purchasing power in the past two to three years,” he stated.

Key measures in the budget include an increased job tax deduction and reduced taxes for pensioners, which are deemed crucial for those struggling with soaring inflation, high mortgage rates, and declining real wages. However, Westerberg noted that most financial benefits are directed towards higher-income earners.

The opposition has criticized the budget for favoring wealthier individuals and is calling for more funding for healthcare.

The proposed investments are as follows:
– 13.5 billion kronor for a new job tax deduction and reduced taxes for pensioners.
– 4.4 billion kronor to lower taxes on investment savings and capital insurance accounts.
– 4.7 billion kronor to eliminate the gradual reduction of job tax deductions, decreasing the marginal tax rate from 55% to 52%.
– 0.4 billion kronor for extended temporary supplementary benefits for families receiving housing allowances.
– 0.9 billion kronor to abolish the airline tax in 2025, potentially lowering ticket prices in Sweden by approximately 82 kronor and reducing costs for trips to the USA by around 325 kronor.
– 3.2 billion kronor to lower fuel taxes, compensating for an increase in reduction obligations from 6% to 10%.
– 0.2 billion kronor for increased sickness and rehabilitation benefits in specific cases, along with housing supplements.
– 6 billion kronor to raise the threshold for state income tax (outside the reform space).