About the Swedish fiscal policy framework
The fiscal policy framework originates from the deep economic crisis that Sweden underwent in the early 1990s. The framework is designed to ensure sustainable public finances in the long term, and to promote a fiscal policy that supports high and sustainable economic growth, welfare and stability in resource utilisation.
The fiscal policy framework is made up of a number of parts:
- budgetary policy targets (a target for general government net lending, a benchmark for government debt, an expenditure ceiling, and a local government balanced budget requirement)
- a stringent central government budget process
- principles for fiscal stabilisation policy
- transparency and clarity
- external monitoring.
The target for general government net lending is one-third of 1% of GDP on average over a business cycle. From 2027 onwards, the target is to achieve balance over a business cycle. The debt anchor of 35% of GDP is a benchmark for the general government consolidated gross debt (termed the ‘Maastricht debt’) in the medium term. The expenditure ceiling is an upper limit for the nominal level of expenditure in central government and the old-age pension system. The local government balanced budget requirement means that local authorities and regions must budget so that their revenue exceeds their costs. Both the expenditure ceiling and the balanced budget requirement support the target for general government net lending by strengthening budgetary discipline.
A stringent budgetary process is of central importance for achieving the targets in the fiscal policy framework. The budget process is medium-term and is based on a top-down perspective, in which expenditure increases are tested in relation to a predetermined financial space given by the expenditure ceiling and the target for general government net lending.
The purpose of the principles for fiscal stabilisation policy is to guide the Government in making stabilisation policy decisions and thereby increase the credibility, predictability and impact of fiscal policy. Clear principles also help to facilitate the interaction between fiscal policy and monetary policy and to reduce the risk of persistent fiscal deficits.
Transparency and clarity mean that reporting on fiscal policy must be transparent. The purpose of external monitoring of fiscal policy at the national level is to ensure that the policy is designed in accordance with current targets, including increasing the political costs of non-compliance with the framework.
The fiscal policy framework is reviewed by an all-party commission of inquiry every second electoral period. In connection with these reviews, any need for changes to the framework can be considered. Periodic reviews of the fiscal policy framework ensure that the framework has strong political support and improve clarity and support continuity.
Government Communication about the fiscal policy framework
In the Communication, the Government sets out the fiscal policy framework. This Communication, which serves as a code of conduct for both the Government and the actors who review the fiscal policy, aims to set out the laws and other rules as well as established practice that make up the fiscal policy framework. The Communication is also intended to provide detail on certain parts of the framework and the Government’s application of it.
Shortcuts
When is the Government’s Budget Bill submitted to the Riksdag?
In the spring, the Minister for Finance submits the Government’s Spring Fiscal Policy Bill and a Spring Amending Budget to the Riksdag. On 13 April, the Government submitted its Spring Fiscal Policy Bill for 2026 and its Spring Amending Budget Bill for 2026 to the Riksdag.
Later in the year, the more comprehensive Budget Bill and an Autumn Amending Budget are submitted. The Government’s Budget Bill for 2026 was presented to the Riksdag on 22 September 2025.
Maastricht debt
‘Maastricht debt’ is often used in international comparisons. It includes the entire public sector – central government, the municipalities and regions and the old-age pension system – and is thus larger than national debt. The calculations are based on the terms of the Maastrict Treaty.
