STOCKHOLM – Stimulating the economy with €3 billion in tax cuts

Earlier this week, the Swedish coalition government of Social Democrats and the Greens announced a budget for 2021 aimed at kick-starting the economy. Due to the COVID-19 health crisis, the Swedish economy is expected to shrink by 4.6% this year, while the unemployment rate is currently at around 9%.

The minority government’s proposal aims to create around 75,000 jobs, as well as increasing peoples’ purchasing power by rewarding low income earners with tax cuts and increasing tax credits for household expenses.

In addition, those employing persons under the age of 23 and companies making investments will be rewarded tax benefits. The budget proposal also gives the opportunity for people under the age of 60 to apply for study or re-employment grants.

According to the long-term plan, the economy will be given a €85 billion boost in 2022 with yet more tax cuts and spending.

(Pekka Vänttinen | EURACTIV.com)

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