• The new right-wing government of Sweden would slash gasoline taxes and increase funding for the military and police.
• Sweden’s economy is anticipated to enter a mild recession the next year.
• The budget will be released on Tuesday at 7:00 a.m. GMT.

In its first budget since winning September’s general election, the new right-wing government of Sweden would slash gasoline taxes and increase funding for the military and police, it announced Monday.

In light of the fact that Sweden’s economy is anticipated to enter a mild recession the next year, the Moderates and Christian Democrats, along with two parties that support them in parliament, have stated that budgetary policy during the next four years must be prudent.

In an article published in the daily Dagens Nyheter, the four parties stated, “The starting point for the budget is to make sure that the Swedish economy can withstand the difficult economic times that are ahead of us.”

“High inflation argues for restraint in fiscal policy.”

The four parties did not specify how much the primary budget measures would cost or how much government expenditure would increase.

However, the government has previously estimated that it would cost approximately 6.7 billion Swedish crowns ($620 million) next year to reduce fuel taxes, with an additional 5 billion going to defense and approximately 5.8 billion to maintain higher unemployment insurance levels instituted during the coronavirus pandemic.

The budget will be released on Tuesday at 7:00 a.m. GMT.

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