On 20 September 2023, the Swedish Government presented the budget bill for 2024 to the Swedish parliament. The government is facing a number of challenges, including high inflation, a recession, and a difficult security environment. The government has set out a long-term plan to get Sweden through this difficult period. The plan includes the following measures:
- To combat inflation and assist households and the welfare system, the government will reduce taxes on petrol, diesel, and agricultural diesel. It will also provide funding to the local government sector and extend the increased housing allowance for economically disadvantaged families with children.
- To re-institute the work-first principle and improve integration, the government will reduce labor income taxes for low- and middle-income earners. It will also reduce taxes for pensioners and introduce an activity requirement for entitlement to income support.
- To implement structural reforms to stimulate growth, the government will ease the administrative burden on businesses and invest in new engineers. It will also provide credit guarantees for new nuclear power plants.
- To build Sweden strong, the government will invest in defense and the judicial system. It will also provide funding for cancer care, women’s health, mental health, schools and elder care.
- To reduce emissions and accelerate the green transition, the government will extend and increase funding for charging infrastructure and boost the Climate Leap and Green Industry Leap climate investment initiatives.
- To rectify incorrect payments from welfare systems and combat the criminal economy, the government will establish a new payments authority and increase funding to the Swedish Tax Agency, the Swedish Enforcement Authority and Swedish Customs.
