Swedish govt votes down own budget bill as pre-election strife mounts

Sweden's ruling Social Democrats and the right-wing opposition both saw their budget bills voted down by parliament on Wednesday as a row over rival pension proposals escalated amid mounting strife heading into the elections in September. The Social Democrats and the parties backing them agreed earlier this week to hike monthly payouts to those with the lowest pensions by around 1,000 Swedish crowns ($98.88).

Sweden's ruling Social Democrats and the right-wing opposition both saw their budget bills voted down by parliament on Wednesday as a row over rival pension proposals escalated amid mounting strife heading into the elections in September.

The Social Democrats and the parties backing them agreed earlier this week to hike monthly payouts to those with the lowest pensions by around 1,000 Swedish crowns ($98.88). The opposition rejected the proposal on technical grounds, saying it came to late ahead of the budget vote. The Social Democrats responded by voting down their own budget proposal, meaning no supplementary budget at all was passed, with the intention of putting forward an amended bill with the pension proposal on Friday.

The moves are likely to have little practical impact if the amended budget is passed but political scientists warned on Wednesday that the strife risked eroding voter confidence in the political system. The Social Democrats hold a weak minority government ahead of general elections due in mid-September. The four-year term has been fraught with political wrangling previously uncommon for Swedish politics, not least in recent months.

Prime Minister Magdalena Andersson's government has had to seek support from parties that deeply distrust each other and fashion intricate compromises to get bills through parliament. The opposition has responded by calling a string of no-confidence votes with the government only surviving the latest by the slimmest of margins this month. [nL8N2XU0IM}

The Social Democrats are seeking a third consecutive term in power with backing from its mostly left-of-centre allies. They are neck-and-neck with the conservative bloc that includes the populist and anti-immigration Sweden Democrats. ($1 = 10.1137 Swedish crowns)