The 2026 Spring Budget in five minutes
Published
On 13 April, the Government presented its Spring Budget. In an uncertain international situation, Sweden continues to stand strong with an economy that is trending upward. The budget includes measures worth SEK 7.7 billion in 2026 and focuses on building a stronger and more secure Sweden.
Sweden’s economy has begun to recover. The Government’s assessment is that, in the uncertain international situation, Sweden is on a strong footing, and has world-class public finances.
When this Government took office, inflation was at 10 per cent, and Sweden’s growth rate was among the lowest in the EU. Through restrained fiscal policy earlier in the electoral period, the Government has contributed to fighting inflation. Expansionary budgets for 2025 and 2026 have contributed to Sweden’s growth rate now being expected to be among the highest in the EU.
At the same time, the world at large is facing major uncertainty and unpredictability. Issues such as the war in the Middle East, renewed threats of potential tariff increases from the US administration and the prevailing security situation in Europe are all factors that create uncertainty regarding future economic developments in Sweden.
The Government’s plan for the economy in an uncertain world
To ensure economic growth, the Government is pursuing a three-pronged approach for the economy: continuing to preserve public finances, making it possible to create more Swedish jobs and ensuring that hard work pays off.
Preserving public finances
Sweden’s public debt is among the EU’s lowest. In 2025, the gross debt was equivalent to approximately 35 per cent of GDP. The corresponding average debt ratio among EU countries was 82 per cent of GDP, according to data from Eurostat. With such low public debt, Sweden’s public finances are world-class.
Given the considerable uncertainty in the global economy, Sweden must continue to shore up its strong public finances in the coming years so as to be able to bolster the economy if necessary. This Government has shown that it is possible to finance reforms by reprioritising expenditures in the central government budget and without increasing the tax burden. The Government and the Sweden Democrats are in agreement that future reforms should not be financed by increasing taxes on labour or savings.
More Swedish jobs
It should be profitable to work and attractive to invest and create jobs in Sweden. The EU’s and Sweden’s competitiveness must continue to be strengthened by ensuring that more businesses can start up, grow and develop in Sweden. The conditions for Swedish businesses must continue to be improved, and trade must increase. Moreover, a stable and reliable energy supply is crucial for businesses’ willingness to establish themselves and operate in Sweden. This necessitates the construction of new nuclear power.
Hard work should pay off
The Government is on the side of hard-working people. High taxes on labour and overly generous benefit systems lessen the incentive to work. During this electoral period, the Government has lowered taxes on labour three times, and likewise lowered taxes on pensions to the same extent. Implementation of the Government’s benefit reform will also continue throughout 2026. This includes a benefit cap and activity requirement for income support, qualification criteria for social insurance, and a temporary job bonus for those who become self-sufficient by working. The aim is to make it more profitable to work than to live on benefits.
| 2025 | 2026 | 2027 | 2028 | 2029 | |
| GDP | 1.5 | 2.8 | 2.5 | 1.4 | 1.5 |
| Employment, aged 15–74 | 0.4 | 1.2 | 0.9 | 0.8 | 0.5 |
| Unemployment, % of labour force aged 15–74 | 8.8 | 8.4 | 7.8 | 7.4 | 7.3 |
| CPI | 0.7 | 0.5 | 1.7 | 3.4 | 2.2 |
| CPIF | 2.6 | 1.2 | 1.6 | 2.7 | 2.0 |
| General government net lending, % of GDP | -1.3 | -2.6 | -2.0 | -0.7 | -0.2 |
| General government gross debt, % of GDP | 35.1 | 36.3 | 37.4 | 37.0 | 36.5 |
Note: Based on published statistics up to and including 5 March 2026 resp. 16 March 2026 for general government net lending and structural balance and 31 March for gross debt. GDP and expenditure components refer to constant prices.
Sources: Statistics Sweden and own calculations
Measures to strengthen and protect the Swedish economy
In the Spring Budget for 2026, the Government proposes measures worth SEK 7.7 billion* 2026. This includes support to households in response to increased energy prices, measures to strengthen total defence capability and measures for a reliable welfare system. After many years of crisis management, the Government is now building a stronger and more secure Sweden in a turbulent world.
Support to households in response to increased energy prices
To counter rising fuel prices, the Government proposes temporarily lowering taxes on petrol and diesel in environmental class 1 to the EU’s minimum level. The Government has also applied to the European Commission for permission to lower taxes on petrol and diesel to below the minimum level. The aim is to be prepared to take additional measures if necessary.
To bolster households, the Government proposes that new temporary electricity and gas subsidies be paid out for January and February 2026. Stable prices are important for private individuals’ ability to plan their finances and live off their wages. The Government plans to work at EU level to enable the use of ‘congestion revenues’ – a phenomenon that arises due to price differences between bidding zones arising from transfer capacity limitations in the electricity grid – for potential electricity subsidies or to cover part of the cost of expanding plannable energy.
To reduce oil dependence and greenhouse gas emissions, the Government proposes an investment to increase government agency purchasing of fossil-free fuels or electric alternatives in 2026. The Government’s proposed measures are expected to reduce overall emissions in 2026.
Continued reinforcement of Sweden’s total defence
During this electoral period, the Government has made substantial investments in civil defence, and it has determined that additional measures are necessary. These include funding for preparatory measures in the railway network and for the construction of a reserve port on Gotland. The Government also proposes setting aside funds to establish a new government agency for Sweden’s foreign intelligence.
A reliable welfare system
Efforts to strengthen Sweden’s welfare system continue. The Government’s proposals include a grant to the regions to maintain health care staffing and capacity during the summer months, a grant to the regions which will enable three additionally publicly financed in vitro fertilisation procedures and one vaccination package for older people. The Government is re-instilling schools’ focus on fundamental knowledge and skills, and proposes initiatives such as language-learning breakfasts and increased government grants for homework support and purchasing of books . The Government is also intensifying efforts to combat men’s violence against women, with several initiatives.
Continued overhaul of criminal policy
One of the Government’s top priorities is to forcefully push back against organised crime. During this electoral period, Swedish law enforcement authorities have been given more resources and more effective tools, which places greater demands on results. The Government now proposes additional funding to boost the Swedish Police Authority’s technological capabilities.
* The SEK 7.7 billion includes proposals in the Spring Amending Budget Bill for 2026, as well as proposals on temporarily lowered taxes on fuel, and electricity and gas subsidies that the Government plans to present today in an additional amending budget.
Passage through the Riksdag
After the Spring Fiscal Policy Bill and Spring Amending Budget Bill for 2026 have been presented to the Riksdag, the Members of the Riksdag have the opportunity to submit motions with alternative proposals during the subsequent weeks. Proposed guidelines for economic policy and budget policy included in the Spring Fiscal Policy Bill are considered by the Committee on Finance. The proposed amending budget, including changes in appropriation frames, revenue estimates and any legislative proposals, is also processed by the Committee on Finance. The Riksdag will then vote on the bills in June.
