• Sweden edition
 
Borg to cut student grants and pension perks
Borg's plans affect students. File photo: Axborn/Flickr

Borg to cut student grants and pension perks

Published: 20 Feb 2014 11:13 GMT+01:00
Updated: 20 Feb 2014 11:13 GMT+01:00

With autumn elections on the horizon, Sweden's Finance Minister Anders Borg said his government would cut student grants and make alcohol and tobacco more expensive, part of a budget plan to fill Sweden's coffers.

"You shouldn't stoke the fire in good times," Borg told reporters in Stockholm on Thursday as he mapped out the centre-right government coalition's budget prognosis for the near- and medium term. He said he no longer saw the need to use stimulus measures to keep Sweden's economy buoyant, and argued that it was time to strengthen public finances. 
 
"Sweden needs proper levees in place before the next crisis," Borg said, adding that Sweden's reliance on liquidity and its high household indebtedness was "a big element of uncertainty in the Swedish economy". 
 
To tighten the reins, Borg said he would slash a tax deduction for Swedish pension savers from 1,000 kronor ($153) to 200 a month, with sights set on removing it completely. 
 
"It has a complicated redistributive profile, and is a relic from the high-tax society," Borg said. He explained further that his government's view that more Swedes needed to work beyond their pension age also meant he was critical of a tax system that worked as an incentive to retire. 
 
The new proposals also affect students. The government will cut the student grant by 300 kronor a month, but allow students to borrow 1,000 more than they can today.
 
With the student loans agency CSN's move to allow students to earn up to 14,100 kronor a month without it affecting the size of their grant, Borg said students had greater leeway in managing their personal finances. All savings in the student grants and loans system would be ploughed back into education, he promised. 
 
"Education is an investment," he said. "We make that clear by introducing improvements to the education system." 
 
The normally tax-shy government, which has introduced income tax cuts in four waves since taking power in 2006, said it would increase fees on vehicles, alcohol, and tobacco to pull in some extra cash. The move would add one krona to a 69-kronor bottle of wine, for example, two kronor to a box of snus, and one krona to a packet of cigarettes. 
 
He said the increase on cigarettes was kept "mild" in order not to facilitate smuggling. 
 
"These taxes may be raised further in the future, but it should happen in small increments," Borg concluded. 

Ann Törnkvist (ann.tornkvist@thelocal.com)

Don't miss...X
Left Right

Your comments about this article

Today's headlines
Police seeking missing Swede in London
Sofie Marie Jansson, who is currently missing in London. Photo: Metropolitan Police

Police seeking missing Swede in London

British police have issued a plea for tips in the search to find Swedish national Sofie Marie Jansson who hasn't been seen for almost a week. READ () »

University applications rocket to record high

University applications rocket to record high

Swedish universities continue to draw vast amounts of applicants with the number of prospective students seeking a third level education increasing for the seventh year in a row. READ () »

Man jailed in US over Lars Vilks murder plot
Swedish artist Lars Vilks pictured in New York in 2012. Photo: Linus Sundahl-Djerf/TT

Man jailed in US over Lars Vilks murder plot

American authorities have sentenced a 20-year-old accomplice of 'Jihad Jane' to five years in prison for an attempted terror plot to kill Swedish artist Lars Vilks, after getting involved with the murder plans when he was a teenager. READ () »

Sweden scraps 'new start zones' after EU input
Integration Minister Erik Ullenhag visits a school in Tensta, one of the neighbourhoods mentioned when he and his colleagues first floated the new start zone proposal. File: TT

Sweden scraps 'new start zones' after EU input

Sweden has abandoned a plan to ease taxes for small companies in blighted areas after the European Commission challenged its legality. READ () »

'Easter eggs an invitation to spread germs'
A typical Swedish Easter egg. Photo: Jessica Gow/TT

'Easter eggs an invitation to spread germs'

A Swedish microbiologist has warned that traditional Swedish Easter eggs laden with candy are an open invitation to the spread of bacteria and viruses. "Is this really a good idea?" he asked. READ () »

Jammed truck snarls Stockholm rush hour
Photo: Anders Wiklund/TT

Jammed truck snarls Stockholm rush hour

PICTURES: A truck got wedged inside a tunnel in central Stockholm on Thursday, with authorities concerned the accident may have damaged cables in the tunnel's ceiling. READ () »

Kids in Victorian garb mark Swedish Easter
A Swedish Easter witch holding daffodils. File photo: TT

Kids in Victorian garb mark Swedish Easter

In India, I'd notice Easter only from the traffic jam outside the churches, but here witches, egg hunts, and feathers mark the Christian holiday. The Local's Deepti Vashisht brings you the various shades of Swedish Easter. READ () »

Swedish MP ordered chemtrail probe
Chemtrails?: Shutterstock.

Swedish MP ordered chemtrail probe

A Swedish MP who launched an official government investigation into the existence of chemtrails tells The Local why he thinks Swedes deserve the truth, even if it may leave some conspiracy theorists unsatisfied. READ () »

PM pleads ignorance of Vattenfall's Nuon bid
Fredrik Reinfeldt answers the constitutional affairs committee's questions. Photo: TT

PM pleads ignorance of Vattenfall's Nuon bid

Sweden's prime minister on Thursday said Vattenfall itself, not its owners the Swedish state, had responsibility for the loss-making Nuon deal. READ () »

'Kockums submarine raid may be illegal': lawyer
Photo: TT

'Kockums submarine raid may be illegal': lawyer

A Swedish lawyer says the Swedish military may have broken the law when it raided the Malmö premises of German defence giant Thyssen Krupp. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Society
Swedish supermarket Ica pulls contested Easter commercial off air
Kungahuset
Society
Swedish royals set baptism date for princess
finest.se
Gallery
People-watching April 16
Politics
Who's the prime minister's heir?
Alfie Atkins
Society
Are children's books the key to families integrating in Sweden?
National
'Sweden Dem protests cater to party's martyr image'
National
'Swedish research grants were fantastic, but now it's like Australia'
Society
Only in Sweden: The ten problems you'd never encounter elsewhere
National
Swedes stopped to take my picture, but didn't look me in the eyes
Business & Money
A swipe of the hand replaced cash and cards in Lund
YouTube
Features
Video: Oliver Gee finds out how to embrace The Swedish Hug
TT
National
Abba duo hints at reunion
Advertisement:
Private
National
Flash mobs hug it out across Sweden
Finest.se
Gallery
People-watching April 11-13
TT
Politics
Swedes to give six-hour workday a go
TT
Society
Aussie choir member wows Abba in Sweden
YouTube
Society
Stockholm magic a surprise YouTube hit
Fastighetsbyrån
Society
Gallery: The Local's Property of the Week
Private
Society
Swedes find 200-year-old gravestone in living room
Stockholm School of Economics
Sponsored Article
Why a bachelor's degree is no longer enough
Deepti Vashisht
Features
Deepti Vashisht dissects the magic of Sweden's personal ID number
Shutterstock
Society
Ten signs you've been in Sweden too long
Society
Jimi Fritze heard every word when doctors discussed taking his organs
Society
A Swedish farmer explains why the new bestiality ban is 'pointless'
ESL
Sponsored Article
Learning Swedish the easy way
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Blog Update: The Diplomatic Dispatch

28 October 15:16

The Green Growth Group Summit »

"Today on the 28 October in Brussels, a large group of key EU Ministers and business people, including UK Secretary of State for Energy and Climate Change Edward Davey, and Swedish Environment Minister Lena Ek, will meet to discuss green growth. They all have a stake in resolving a challenge which, although it is crucial..." READ »

772
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com