Press release from Ministry of Finance

Fifth additional amending budget with more money to armed forces and electricity price compensatory payments to households

Published

Russia’s illegal, unprovoked and unjustifiable invasion of Ukraine has led to a deterioration in the security situation in Sweden’s neighbourhood and contributed to exceptionally high electricity prices. The Government’s response is based on three important principles: support to Ukraine, sanctions against Russia and strengthening Sweden. Therefore, the Government today adopted a fifth additional amending budget to strengthen Sweden by providing more funding to Sweden’s military defence and temporary financial compensatory payments to households for high electricity prices. These measures have been presented previously.

The security situation in Sweden’s neighbourhood has deteriorated over time. Russia’s invasion of Ukraine has further worsened the situation. An armed attack against Sweden cannot be ruled out. It is therefore important that Sweden’s defence capability is strengthened in the short term and that the pace of the military scale-up can be increased. On 16 March 2022, the Defence Commission, comprising all the parties represented in the Riksdag, reached an agreement on military and civil defence. This amending budget presents proposals involving additional funding in 2022 and expanded authorisation to place orders for military defence. These extra resources will allow the Swedish Armed Forces to increase its resilience by purchasing fuel, food, vehicles, small-calibre ammunition, etc. Advanced ammunition such as anti-tank weapons, surface-to-air missiles and air-to-air missiles can also be acquired. The extra resources can also be used to employ additional personnel and purchase tracked vehicles, SEP modular armoured vehicles and mortar system vehicles to increase the war organisation’s mobility and protective cover.

Russia’s invasion of Ukraine has also had major repercussions on energy markets in Sweden and Europe. Electricity prices have remained exceptionally high and electricity bills in March 2022 will also be high for many households. To mitigate the consequences of the high electricity prices in this exceptional situation, it is reasonable to provide temporary financial compensatory payments to households in southern and central Sweden with high electricity consumption in March 2022. The threshold for how much electricity consumption is required to be eligible for the support will be lowered compared to previous compensatory payments so that more households are included. The levels of the payment will also be lowered to reflect the reduced electricity consumption during the spring.

The proposals mean that allocated funds to the government budget will increase by SEK 2.9 billion in 2022.

The Government considers that there are exceptional grounds for the Riksdag to adopt a shortened motion period, and proposes that the motion period be shortened to five days.

According to the Riksdag’s preliminary schedule, the budget will be adopted on 7 April.

Press contact

Mirjam Kontio
Press Secretary to the Minister for Finance Mikael Damberg
Phone (switchboard) +46 8 405 10 00
Mobile +46 73 074 05 57
email to Mirjam Kontio
Per Strängberg
Press Secretary to the Minister for Finance Mikael Damberg
Phone (switchboard) +46 8 405 10 00
Mobile +46 73 093 90 56
email to Per Strängberg