Sweden's Financial Flex: Unveiling the Nordic Spending Bonanza

Sweden's right-wing coalition announced an 80 billion crown spending plan in its 2026 budget focusing on economic growth ahead of the general election. Unlike many European nations, Sweden maintains low government debt, enabling expansive measures for tax cuts, defense, schools, healthcare, and housing allowances.

In a bold move signaling economic vitality, Sweden's right-wing coalition unveiled an 80 billion crown government spending plan for the 2026 budget. Finance Minister Elisabeth Svantesson emphasized Sweden's fiscal health, contrasting with European peers facing budget constraints amid mounting debts.

Key measures include tax reductions for workers and businesses, lower VAT on food, and increased funding for defense, healthcare, and education. The ambitious budget, the largest since the COVID-19 pandemic, also promises housing support for low-income families. It aims to spur economic growth in the lead-up to the general election next September.

Sweden's economic resilience, with government debt at 32% of GDP, sets it apart from struggling European economies like France. The budget seeks to maintain its fiscal edge even with commitments such as increased defense spending and funding for nuclear power plants, ensuring debt remains manageable.

(With inputs from agencies.)