The 2022 Spring Budget in five minutes
Today, the Government is presenting the 2022 Spring Fiscal Policy Bill and the Spring Amending Budget for 2022. In light of the deteriorating security situation, the Government is presenting a budget to strengthen Sweden that includes both immediate investment and long-term measures to address societal challenges, at a total of SEK 35.4 billion.
Swedish economy resilient, but major uncertainty surrounding growth
The Swedish economy has made a strong recovery in the wake of the pandemic and the growth outlook for this year is fundamentally stable. However, Russia’s invasion of Ukraine is expected to impact the economic trend. Growth is expected to be lower than would otherwise have been the case and, at the same time, inflation is expected to be higher.
Nevertheless, the Swedish economy is resilient. The labour market situation has clearly improved, and the employment rate is now higher than before the pandemic broke out. General government net lending is expected to be in surplus in 2023 and to be strengthened further in subsequent years. At that time, the public finance surplus will contribute to reduced public sector debt. Sweden’s gross debt as a percentage of GDP is among the lowest of the EU Member States.
|GDP, calendar adjusted, percentage change||4.7||3.1||1.8||1.6||1.9|
|Employment, aged 15–74, percentage change||1.1||2.1||1.0||0.4||0.6|
|Unemployment, % of labour force aged 15–74||8.8||7.6||7.0||7.0||7.0|
|General government net lending, % of GDP||-0.2||-0.5||0.7||0.8||1.4|
|General government structural balance, % of potential GDP||-0.2||-0.4||0.5||0.9||1.5|
|Note: GDP and expenditure components refer to constant prices.
Sources: Statistics Sweden, Macrobond and own calculations
Short-term measures in response to the situation in Ukraine, but continued long-term efforts to address societal challenges
The security situation in Europe has drastically deteriorated. Russia’s invasion of Ukraine is unprovoked, illegal and unjustifiable. The EU and Sweden have responded forcefully. The Government’s measures cover three areas: support to Ukraine, sanctions against Russia and a stronger Sweden.
Sweden has provided both financial and humanitarian support to Ukraine. Support has also been provided to Ukraine’s armed forces in the form of financial contributions and defence materiel. Together with other EU Member States, Sweden has swiftly imposed sweeping sanctions against Russia and Russian government officials. Many people, primarily women and children, have fled Ukraine. Sweden will assume its share of the responsibility to receive Ukrainian refugees and expects other countries to do the same. Substantially increased funds are being allocated for an orderly reception throughout Sweden.
For a stronger Sweden, the decision has been made to strengthen military defence and the Government has now also presented a proposal to enhance civil defence. A number of measures have also been presented to mitigate the effects of price increases on households and businesses.
The Government remains steadfast in the long-term battle to address societal challenges and to make Sweden safe for all. A strong society is contingent on stable institutions and high levels of social trust. The Government is therefore taking measures to push back against violence and criminality and break segregation, create jobs throughout the country by driving the green transition, and take back democratic control over the welfare system.
Additional resources to respond to the pandemic and its effects
Sweden’s pandemic response demonstrates that Sweden has the capacity to address major societal challenges. The Government’s measures have contributed to reducing the spread of infection, saving lives and reducing the negative impacts on jobs and businesses. The Government proposes that additional resources be allocated to secure Swedish health care and social services, and that additional funds be provided to ensure that everyone can receive a fourth vaccine dose, if necessary. A total of almost SEK 600 billion has been provided to respond to the pandemic and restart the economy. The economic recovery has been swift, and Sweden has navigated the economic crisis well in comparison with many other countries.
Reduced income equality during the electoral period
As always, the Government has presented an analysis in the Spring Fiscal Policy Bill of how income is distributed among various groups, including an analysis of the effects of reforms implemented during the electoral period. The Government’s reforms during the electoral period are considered to contribute to reduced income distribution inequality. They are also considered to contribute to a lower percentage of the population with low economic status. The Government’s welfare investments during the electoral period are considered to increase income levels for all groups. However, the impact is considered to be greatest for those with low incomes.
Passage through the Riksdag
After the Spring Fiscal Policy Bill and the Spring Amending Budget have been presented to the Riksdag, the members of the Riksdag have two weeks to present motions containing alternative proposals. Proposed guidelines for economic policy and budget policy included in the Spring Fiscal Policy Bill are processed by the Committee on Finance. The proposed amending budget, including changes in appropriation frames, revenue estimates and any legislative proposals, is also processed by the Committee on Finance.
The Riksdag will take a decision on the budget bills in June. The tentative date of decision is 15 June 2022.