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SWEDISH FISCAL POLICY 2011


16 May 2011

Despite a deep economic downturn, there were only small budget deficits in Sweden. Now a strong economic upturn with increasing employment is under way. The public finances are improving rapidly. The Government has revised its estimate of the scope for tax reductions and expenditure increases upwards. There are good grounds for this. At the same time, weaknesses in the economic policy decision-making process and the institutional framework may lead to increased tensions over time and thus threaten long-term stability. Such warnings may be perceived as irrelevant in the current situation. But events in other countries demonstrate the importance of identifying and preventing potential problems in good times.

As in previous years, the main emphasis of the report is on the public finances and the labour market. The report also discusses identification of business cycles, financial stability, taxes and education.

Summary in EnglishPDF
Complete report in SwedishPDF

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