Government presents 2024 Spring Fiscal Policy Bill

“We are in the midst of an economic winter, with weak growth and rising unemployment. The economic situation is challenging, but the decreasing inflation is a sign of improvement. We are now presenting a Spring Amending Budget to navigate Sweden through the recession. We are reinforcing health care with additional resources to the regions and investments for more jobs. Safety and security in Sweden must increase, which is why we are making additional investments in law enforcement authorities and defence. We can clearly see that the fight against inflation has produced results, but we must remain persistent and lay the foundations for making Sweden safer, more secure and wealthier,” says Minister for Finance Elisabeth Svantesson.

As inflation drops and the effects of the recession become increasingly apparent, the primary aim of the economic policy is to lay the foundations for recovery, higher growth and better welfare.

A three-part plan to navigate the difficult economic situation 

The Government’s long-term plan to address the challenging economic situation still stands:

• Fight inflation and support households and welfare
• Re-institute the work-first principle
• Structural reforms for stronger growth

Measures to support the economy and enhance safety and security

In the Spring Amending Budget for 2024, the Government is presenting proposals aimed at supporting the economy and welfare and increasing our safety and security. The proposals in the Spring Budget amount to a total of SEK 17.3 billion this year. 

Investments to navigate Sweden through the recession and safeguard the welfare system

To compensate for the effects of inflation and avoid dismissals of health care staff, the Government is supporting the regions with an additional SEK 6 billion. The Government also proposes allocating additional funding to the municipalities to help children and pupils receive the education and support they are entitled to.

To drive down unemployment, additional funds are being set aside for more places in adult education. The temporarily increased housing allowance for economically disadvantaged families with children is being extended, and support to municipalities with high unemployment expanded. 

The Government is boosting the Climate Leap, which can be used to fund investments in charging infrastructure and thus make it easier to choose electric vehicles for road transport.

Law enforcement and improved safety and security

The Government proposes continued reinforcement of resources to strengthen law enforcement authorities. Funds will be set aside to accelerate the Swedish Prison and Probation Service’s planned increase of the number of detention and prison places. The National Board of Institutional Care will receive additional support to increase safety and security and to accommodate the increasing number of children and young people being sentenced to institutional youth care. The Government also proposes setting aside additional funds for the Courts of Sweden.

Criminal finances must be crushed. The Government therefore proposes additional funds to the Swedish Tax Agency, Swedish Customs and the Swedish Enforcement Authority. The Swedish Social Insurance Agency will receive resources for efforts to combat incorrect payments and the Health and Social Care Inspectorate will receive funds to prevent and combat welfare crime. In addition, resources will be set aside to further the exchange of information between government agencies.

Stronger defence and crisis preparedness 

The Government also continues to support Ukraine and will set aside the necessary funds to finance the remaining parts of the support package in the additional amending budget presented in February 2024.

The Government has assessed that Sweden’s defence expenditures according to NATO’s definition will amount to two per cent of GDP this year. To further strengthen capability in the existing military units, the Government proposes setting aside funds for the Swedish Armed Forces. The Government also proposes that funds be allocated to start the work on certain priority measures in transport infrastructure based on the needs of total defence. 

To ensure cybersecurity, the Government proposes setting aside funds for the Swedish Social Insurance Agency and support to smaller municipalities and other public actors, to improve their capacity to resist and manage IT incidents.