"Hard-working people, families and pensioners will now have more money in their pockets. People should believe in the future and feel secure instead of having to worry about finances. This will also help stimulate the economy and bring us out of the economic downturn," says Minister for Finance Elisabeth Svantesson.

Recent years have been difficult for many people. The ongoing trade war and geopolitical tensions have created economic uncertainty. As a result, the recovery that began at the end of 2024 has slowed, which has in turn prolonged the economic downturn. In these times of uncertainty, Sweden has a solid economic foundation with low central government debt. This gives the Government the ability to implement measures that strengthen Sweden and the finances of Swedish households, stimulate domestic demand and break the economic downturn. 

The Government has today presented a budget focusing on three reform areas:

1. Putting more money in people’s pockets 
2. Strengthening the work-first principle and overcoming social exclusion
3. Investing in social welfare and security

Putting more money in people’s pockets

The unpredictable and uncertain international situation demands measures to strengthen Swedish households and promote economic recovery. The Government therefore proposes measures such as reducing tax on labour and pensions, temporarily reducing value added tax on food in order to lower food prices and increasing the housing allowance for families with children. The Government also proposes lower childcare fees, reduced tax on sickness and activity compensation, a lower energy tax on electricity and high-cost protection for households against high electricity and gas prices.

Strengthening the work-first principle and overcoming social exclusion

It needs to be more worthwhile to work and support yourself than to live on benefits. To build a Sweden that holds together, those at risk of long-term benefit dependence and social exclusion must be given society’s support, but not without the clear requirement that they do what is necessary to find work and become part of the community. An important part of the Government’s efforts in this area is a three-part benefit reform. It concerns a benefit cap for social assistance recipients, an activity requirement for social assistance recipients and qualification for social welfare.

Investing in social welfare and security

Sweden will be a safer place to live. With a stronger judicial system, organised crime can be suppressed with full force. It must also be possible to rely on social welfare. In this budget, the Government is investing in judiciary reforms and comprehensive and well-structured crime prevention with social initiatives. The Government is also presenting the largest school reform package in 30 years. To ensure that health and social care is more accessible, and to maintain high quality for everyone who needs it, the Government proposes measures such as investments aimed at shortening waiting times and increasing accessibility in medical care. Moreover, investments are being made in nuclear energy for the Swedish electricity supply. 

In addition to the reforms totalling almost SEK 80 billion, the Government proposes measures amounting to approximately SEK 50 billion for investments in defence and support to Ukraine.