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Sweden earmarks ten billion kronor for regions

TT/The Local · 7 Sep 2009, 13:53

Published: 07 Sep 2009 13:53 GMT+02:00

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The state support is being billed as a temporary one-year measure to "safeguard welfare provisions in municipalities and regions." The extra funding is set to take effect in 2010.

Seven billion kronor have been earmarked for the country's municipalities (kommuner), with three billion to be shared among the regions (landsting). The extra funding is to be divided in proportion to the relative populations of the localities concerned.

The government said it expects the additional spending to help save 13,000 jobs.

"The money is to be used to avoid panic cutbacks. It's not for employing new staff but for preventing lay-offs," Prime Minister Fredrik Reinfeldt told news agency TT.

But Social Democrat economic affairs spokesman Thomas Östros described the funding as the rushed rescue operation of a government under pressure.

"I had hoped the municipalities would receive information about how to fund the health care and education sectors in the long term. Now the government has been forced into an emergency operation that just covers the next year," Östros told TT.

The Swedish Association of Local Authorities and Regions (Sveriges Kommuner och Landsting – SKL) had said that 4 to 5 billion kronor were needed next year to maintain the same level of support as 2009.

Last week, the parties in the governing centre-right coalition agreed to reduce income tax by 10 billion kronor next year, as part of the fourth stage in the parties’ in-work tax credit programme (jobbskatteavdraget). The tax cuts will mean individual tax reductions of up to 250 kronor per month.

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But the proposal will also make it difficult for the government to entirely ignore the demands of pensioners.

At the end of August, the Alliance parties also announced an 8.4 billion kronor ($1.19 billion) scheme to fund education and training measures designed to combat growing unemployment.

TT/The Local (news@thelocal.se)

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Your comments about this article

18:53 September 7, 2009 by Aynte
10Billion Kroner for welfare services? That sounds bizarre. Don't you think?

I don't know what tendencies were taken and needs were identified ? I assumed the whole money goes to the newly arrived refugees who are unable to catch up the town. But why not (green jobs) instead pumping such amount of money?

As refugee who came-off welfare program for quite a while ago, I noted its nothing, but discouraging and less motive to find out job.

This just my personal case,

19:35 September 7, 2009 by peropaco
Yep. This is where my hard earned dough goes. To support the ultimate misplaced personalities and the corrupt countries which forced them to leave
00:40 September 8, 2009 by jack sprat
Its not hard to tell that an election lies just around the corner.
10:43 September 8, 2009 by EtoileBrilliant
Is this an example of the "Robin Hood Taxes" where people from Stockholm, Gothenburg, Malmo and the likes have to support the the regions. Isn't that a lifestyle choice?
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