The Budget for 2026 in five minutes
Published
The strength of Sweden’s public finances is now being drawn upon to put more money in the pockets of hard-working people. This can inspire belief in the future and bring the economic downturn to an end. With the Government’s reforms, a family with two children will have an additional SEK 1 800 per month. The Budget includes reforms totalling almost SEK 80 billion, and is based on an agreement between the Government and the Sweden Democrats.
The Budget Bill contains the Government’s proposals for the central government budget for next year.
The economic situation
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. At the same time, the prospects for recovery are good. As of the second half of 2025, real wage growth, lower interest expenditure and an accommodative fiscal policy are expected to contribute to steady growth in household consumption.
In these times of uncertainty, Sweden has a solid economic foundation and 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.
Macroeconomic key figures
| 2024 | 2025 | 2026 | 2027 | 2028 | |
|---|---|---|---|---|---|
| GDP¹ | 1.0 | 0.9 | 3.1 | 2.6 | 1.3 |
| Unemployment, 15–74 years² | 8.4 | 8.7 | 8.3 | 7.8 | 7.6 |
| CPIF³ | 1.9 | 2.7 | 1.3 | 1.9 | 2.6 |
| General government net lending, as a percentage of GDP | -1.5 | -1.4 | -2.4 | -1.8 | -0.6 |
| General government debt, as a percentage of GDP | 33.9 | 35.1 | 35.8 | 36.8 | 36.5 |
¹ Fixed prices.
² Per cent of labour force.
³ Consumer Price Index with fixed interest rate.
Note: Based on published statistics up to and including 4 August 2025 and 8 August 2025 respectively for general government net lending and general government debt.
Sources: Statistics Sweden and own calculations.
A budget for hard-working people
The Government is presenting a budget with reforms totalling almost SEK 80 billion, excluding investments in defence and support to Ukraine. The budget is focused on three reform areas:
- Putting more money in people’s pockets
- Strengthening the work-first principle and overcoming social exclusion
- Investing in social welfare and security
Below you can read more about the proposals in the Budget Bill for 2026.
The purchasing power of many households has been seriously impacted by previously very high inflation. At the same time, domestic demand is expected to play a key role in bringing the economic downturn to an end. For this reason, the Government intends to support Sweden’s recovery through measures that strengthen households and reduce both cyclical and structural unemployment.
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. It should be worthwhile to get a job. Good conditions for Swedish enterprise are a prerequisite for increased growth. Through lower taxes, simpler rules, quicker permit processes and better skills supply, obstacles to growth can be cleared and entrepreneurs’ ability to focus on their core activity improved.
Sweden must continue to be a country with a reliable welfare system. The Government is continuing its efforts to create better conditions for preschools and schools, and to restore a strong knowledge-based school system. The Government is also working to structurally improve health care through measures such as shorter waiting times.
Restoring safety and security in Sweden is the great issue of freedom of our time. Organised crime is a serious threat to an open democratic society, the individual’s rights and freedoms, and the underpinnings of our state governed by law. To reverse the trend, the Government is implementing initiatives; this includes targeting organised crime.
Swedish migration policy is undergoing a paradigm shift, and the Government has a concrete reform agenda aimed at solving a large number of migration-related social problems. The aim of the reforms is to establish a responsible and restrictive migration policy.
The Government is resolved to phase out fossil fuels, and its work is geared towards achieving the objective of net zero emissions by 2045.
The Government continues in its efforts to improve the efficiency of publicly funded activities. Every krona paid in tax should be used wisely, and state-financed activities should be subject to continuous review and prioritisation.
Today’s security situation is more serious than at any other time since the Second World War. Together with Allies, Sweden needs to constrain Russia’s capability to inflict harm, through enhanced deterrence and defence and by supporting Ukraine. Sweden will support Ukraine for as long as it takes. The Government has proposed allocating major funding to Sweden’s defence, which will be temporarily financed through loans, as a deviation from the budget policy target for net lending. In the Budget Bill for 2026, the Government therefore proposes investments in military defence and parts of civil defence that, together with the support to Ukraine, add up to around SEK 50 billion. This SEK 50 billion is in addition to the reforms that total almost SEK 80 billion.
Here you will find all the reforms in the table of reforms that presents the Government’s investments in figures.
Reforms in the Budget Bill for 2026
Central government expenditure and revenue for 2026
The central government expenditure proposed for 2026 amounts to SEK 1 542 billion. Central government revenue is projected to total SEK 1 375 billion for 2026. Central government finances are therefore expected to show a deficit of approximately SEK 167 billion in 2026.
Next step – the Riksdag processes the draft budget
When the Government has presented the Budget Bill, the Riksdag’s processing begins. It considers the draft budget in two different steps:
Step 1: First, the Riksdag adopts the guidelines for economic policy and the economic framework of the central government budget. The decision on the economic framework – known as expenditure frameworks – guides the continued processing in the Riksdag, as the expenditure frameworks cannot be exceeded. This decision is usually referred to as the framework decision.
Step 2: In the second step, the Riksdag decides how to divide up expenditure in each individual expenditure area, in other words, how much money different activities will receive. Processing of the Budget Bill is complete once the Riksdag has decided on the proposals for all expenditure areas.
