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Swedish budget to bring tax cuts


Swedish budget to bring tax cuts


People in Sweden can look forward to less tax, less unemployment and economic growth, according to their Finance Minister who’s just announced his Spring budget. Anders Borg said his centre-right government, in power since October raised GDP forecasts last formulated in the autumn: “The budget will mean the scrapping of wealth tax, a reduction in tax on homeowners and improved help for companies in difficulty. All this will reinvigorate the labour market, leading to a rise in the number of flexible and skilled jobs.” said Borg.

The budget bill predicts that the tax ratio, or highest level taxes as a percentage of GDP, will fall to 47.7% this year and in 2008 before rising slightly again in 2009. This would still be well above the European average of 40%, but the lowest in Sweden since the mid-eighties according to the government.

It also predicted unemployment will fall to 6.7% in 2007, thats down one percentage point. One of the government’s election promises was to get Swedes back to work. Despite sound economic growth, it is hoping to boost its opinion rating which has been lagging of late.

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