Sweden Unveils 2025 Budget with Significant Economic Stimulus Measures
Sweden's 2025 budget introduces extensive economic measures for households and welfare reforms.
- • Total budget of approximately 79 billion SEK.
- • New job tax deduction and reduced food VAT among key household support measures.
- • Welfare includes 10.4 billion SEK for healthcare, schools, and seniors' dental care.
- • Environmental initiatives receive significant funding to address climate change.
Key details
On September 22, 2025, the Swedish government presented its 2025 autumn budget, amounting to approximately 79 billion SEK, aimed at revitalizing the economy amidst ongoing challenges. This comprehensive budget outlines key allocations for households, welfare improvements, and major investments across various sectors.
A significant focus of the budget is on household support, including a new job tax deduction valued at 21.4 billion SEK and a reduced VAT on food from 12% to 6%, effective from April 2026 through December 2027, which is expected to cost around 16 billion SEK in 2026 and 21 billion SEK in 2027. Additionally, electricity taxes will be lowered with financial provisions extended to reduce high costs, totaling 1 billion SEK to assist in stabilizing prices.
Welfare spending is projected at 10.4 billion SEK, specifically allocating 5.9 billion SEK to healthcare, 3.3 billion SEK to schools, and 1 billion SEK to a dental care reform aimed at seniors over 67 years of age. This reform is set to provide even greater support than previously anticipated, reflecting the government’s commitment to improve the welfare of its elderly population.
Moreover, the budget reinforces crime prevention initiatives with a dedicated 2.6 billion SEK for addressing crime and safety, while environmental projects receive an investment of 3.5 billion SEK, promoting climate action and nature conservation efforts.