Article from Ministry of Finance

The Budget for 2022 in five minutes

Published

On 20 September 2021 the Government presented its budget proposal for 2022 to the Riksdag.

Photo: Magnus Liljegren/Government Offices of Sweden

The Government proposes measures to accelerate the climate transition, get more people into work, strengthen the welfare system and make Sweden a safe and secure country for all. In total, reforms worth approximately SEK 74 billion are involved.

“We are now presenting a budget with aggressive reforms for the climate, jobs, welfare and law enforcement. Together, we will take Sweden forward after the pandemic,” says Minister for Finance Magdalena Andersson.

Swedish economy shows strong recovery

Growth in the Swedish economy is expected to be strong in 2021 and 2022. Several confidence indicators are at historically high levels, in both manufacturing and services. One driver of growth is the strong performance of household consumption now that more and more people have been vaccinated and restrictions are at a low level. As demand in the economy rises, the prospects in the labour market are also expected to improve, but some groups still have problems.

The vigorous fiscal policy during the pandemic has been an important precondition for the rapid start of the recovery. So as not to risk breaking the rapid recovery, fiscal policy also needs to remain vigorous next year. Several international expert bodies such as the IMF, OECD and European Commission point to the importance of continuing to pursue a stimulus policy. Sweden’s stable central government finances enable fiscal support for the recovery and the management of the risks of the pandemic to continue.

Key indicators forecast, September 2021
  2020 2021 2022 2023 2024
GDP, calendar-adjusted, percentage change -2.8 4.4 3.5 1.4 1.5
Employment, aged 15–74, percentage change -1.3 -0.1 1.7 1.0 0.3
Unemployment, as per cent of labour force aged 15–74 8.3 8.8 7.7 7.0 7.0
General government net lending, as per cent of GDP -3.0 -1.8 -0.7 0.4 0.7
Structural net lending, general government sector, as per cent of GDP -1.0 -1.2 -0.6 0.4 1.0

Key indicators forecast, September 2021

Reforms for a stronger and more sustainable Sweden

The Government proposes reforms totalling SEK 74 billion in the Budget Bill.

Faster climate transition

The climate is the defining issue of our time. Sweden is and will continue to be a forerunner in work for the environment and the climate. The Government is therefore proposing measures to ensure that Swedish industry will retain its leading position in the climate transition, to contribute to infrastructure that leads to a more sustainable society and to accelerate work to transition to a more circular economy and a greener everyday life.

Getting more people into work

Thanks to the crisis measures taken by the Government unemployment has been kept down. At the same time, it is unavoidable that unemployment rises in economic crises. Now the situation in the labour market is rapidly turning upwards, but vigorous action is needed to ensure that unemployment does not persist. The Government is therefore proposing measures to maintain the economic recovery, press back long-term and youth unemployment and widen the bottlenecks in the labour market. The Government is also proposing the introduction of a new system for transitioning in the labour market so as to respond to changes in the labour market with security and faith in the future. Measures are also proposed to make the whole of the country grow.

Strengthened welfare system

The pandemic has demonstrated the strength of and need for jointly financed welfare provision, but has also made serious shortcomings visible. The Government is therefore proposing measures for more accessible health and social care, more secure social insurance benefits for a more sustainable working life, more equitable knowledge-based school education and vigorous culture and sport throughout the country. The Government is also proposing measures to limit the spread of infection and to continue vaccinations.

Sweden – a safe and secure country for all

Serious crime is threatening cohesion and security in our country. Crime will be fought with full and unremitting force using all the tools available. The Government is therefore proposing measures to continue to fight gang crime with the full force of a democratic state governed by rule of law, to stop cheating with tax funds as well as men’s violence against women and to strengthen preparedness in a new time.

Table of reforms

Measures worth almost SEK 400 billion on account of the pandemic

Since the spread of the infection began, the Government and the Riksdag have taken a large number of measures to safeguard people’s lives, health and livelihoods. At the same time a powerful green restart of the Swedish economy is being implemented. In total, the economic measures taken are worth almost SEK 400 billion for 2020 and 2021, i.e. around SEK 40 000 per inhabitant. In addition, around SEK 1 000 billion has been made available in various forms of loans and guarantees.

Economic measures on account of the pandemic 2020–2021

 

Next step – Riksdag processing of the draft budget

The Riksdag determines the budget in two stages; first as a whole and second in detail.

In the first stage, the Riksdag takes a decision on total expenditure and an estimate of revenue in the central government budget. This decision determines how much money goes to the various areas of society - the expenditure areas.

Once the decision has been made, normally at the end of November, the Riksdag decides on the details in a second stage. This involves deciding what the money in the various expenditure areas is to be used for. By mid-December, the Riksdag has taken all the necessary decisions on the central government budget.