Finanspolitiska rådet
Finanspolitiska rådet,
Box 3273, SE-103 65 Stockholm
Kungsgatan 12-14,
Phone:+46 8 453 59 90
Fax: +46 8 453 59 64

  • Fiscal Policy Council report in English

    8 September 2014

    The 2014 report of the Swedish Fiscal Policy Council is now available in English.Swedish Fiscal Policy 2014PDFSummaryPDF

    12 May 2014

    The 2014 report of the Swedish Fiscal Policy Council, Svensk finanspolitik 2014 , was published today and presented to the Minister for Finance Anders Borg.A summary of the principal conclusions in this year's report is available in English. The full translation of the report will be published in the autumn.Summary (English)PDFSvensk finanspolitik 2014 (Swedish)PDFBackground reports 2014opens in new window
  • Fiscal Policy Council report in English

    5 September 2013

    The Fiscal Policy Council's report from 2013 is now available in English. The report covers, among other things, the surplus target, the Government's forecasts, the distributional effects of the earned income tax credit, the housing market, the corporate tax cut and climate change.Swedish Fiscal Policy 2013PDFSummaryPDF
  • The IMF studies the Swedish Fiscal Policy Council

    3 September 2013

    In a new paper, IMF examines the functions and impact of fiscal institutions in different countries. IMF concludes the following about the Swedish Fiscal Policy Council:"In its short life, the FPC has influenced fiscal policy. At a key moment, it influenced the policy debate and contributed to promoting a more cyclically adjusted budgetary policy. To sum up, the council’s recommendations tended to be taken into account by the government in many cases, even if reluctantly on occasion, and sometimes with a time lag.The strategy of the FPC to gain credibility by establishing its independent status through normative analysis combined with a focus on communicating its views through formal reports, parliamentary hearings, and actively building media relations, has proved relatively successful to date. In the Swedish context, despite the limited resources of the FPC and the lack of budgetary independence, the council has managed to be an independent watchdog with an active voice. This can be explained by the widespread political and public consensus and support for fiscal sustainability. And also by the fact that the FPC is embedded into an institutional framework where other independent agencies perform tasks that in other countries are exercised by a single council. The challenge for the FPC moving ahead is to continue to fulfill this remit with its limited resources."IMF Case studies on Fiscal Councils (see p. 38-42 on the Fiscal Policy Council)IMF The functions and impact of Fiscal Councils
  • John Hassler new Chairman and Oskar Nordström Skans new member of the Fiscal Policy Council

    22 August 2013

    Following the Council's nominations on June 13 this year, the Government has decided to appoint John Hassler as Chairman, Eva Lindström as Deputy Chair and Oskar Nordström Skans as member of the Fiscal Policy Council.
  • New Chairman and new member of the Council

    13 June 2013

    Lars Jonung will resign as Chairman of the Swedish Fiscal Policy Council on the 31st of August 2013.- After three rewarding years as a member of the Fiscal Policy Council, of which two years as the Chairman, it is time to hand over this assignment to younger forces. The Council has found a well-functioning structure for operating, it has become established and it stands out as a role model internationally, says Lars Jonung.New members of the Council are elected by the Government, following nominations from the Council. The Council has decided to nominate current Deputy Chairman John Hassler as the new Chairman and current member Eva Lindström as the new Deputy Chair. Professor Oskar Nordström Skans (Institute for Evaluation of Labour Market and Education Policy, IFAU, and Uppsala University) has been nominated as the new member of the Council.
  • REPORT OF THE FISCAL POLICY COUNCIL 2013Surplus target will not be met

    15 May 2013

    The 2013 report of the Swedish Fiscal Policy Council, Svensk finanspolitik , was published today and presented to the Minister for Finance Anders Borg.Summary (English)PDF
    Complete report (Swedish)PDF
    Background reports 2013opens in new window
  • SWEDISH FISCAL POLICY 2012Strong finances - But too large safety margins

    14 May 2012

    Strong public finances
    The Swedish economy has thus far fared well with the global crisis. The fiscal policy generally appears to be successful and, on the whole, well balanced considering the shocks that have affected the Swedish economy. In the Council´s opinion, the fiscal policy pursued in 2011 and 2012 has complied with the current fiscal framework. We think that there is little risk of expenditures exceeding the expenditure ceiling in the next few years. We take the view that the fiscal policy is compatible with long-term sustainable public finances.
    Lacking a stabilisation policy basis
    The Council notes that the tax cuts announced in spring 2011 were not proposed in the 2012 Budget Bill. We think that the position taken by the Government lacked and still lacks a stabilisation policy basis. Rather, the worsened economic situation argued in favour of a more expansive fiscal policy.
    Uncertainties regarding safety margins
    The Government has referred to the economic crisis and the macroeconomic uncertainty as an argument for larger safety margins in fiscal policy. This argument has caused some confusion about whether the Government thinks that the fiscal framework is adequate. Regular use of safety margins risks creating an undesirable procyclical element in fiscal policy and causing average government net lending to exceed the surplus target.
    Uncertainties regarding the public wealth  
    The surplus target results in the stabilisation of general government net financial wealth as a percentage of GDP. Net wealth will likely continue to increase from the current level of about 20 per cent of GDP. In the Council´s opinion, the Government should clarify its view of what an appropriate size of government net wealth is. The Council´s view is that a further build-up of net wealth beyond the current level is difficult to justify with the need for safety margins for a future economic downturn.
    Overestimated effects of reduced restaurant VAT
    The Government´s most costly measure in the 2012 Budget Bill is the reduction of the VAT on restaurant and catering services. It is the Council´s opinion that the estimated effects of the reform on unemployment and employment are exaggerated. We also think that the reduced tax rate is an inefficient way of reducing the administrative costs. The lower VAT on restaurant and catering services is rather more like sectoral support. The Government should instead consider introducing a uniform VAT. This would most likely have large positive economic effects.
    Summary in EnglishPDF
    Complete report in EnglishPDF
    Complete report in SwedishPDF

The Council's Report

Background Reports 2014

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