Economy For Members

EXPLAINED: How Sweden's 2023 budget could benefit your finances

Becky Waterton
Becky Waterton - [email protected]
EXPLAINED: How Sweden's 2023 budget could benefit your finances
Photo: Henrik Montgomery/TT

Sweden's government has presented its first budget proposal, which has been clearly affected by inflation, high energy prices, and war in Ukraine. Here's The Local's round-up of some of the key proposals and how they may affect you.


It’s worth noting that the budget is not guaranteed to pass, although it is likely that it will. This is the government’s proposal and in order to pass, it requires a majority of parliamentarians not to vote against it. Opposition parties also have the chance to put forward their own rival budget proposals, either individually or together, which could be passed instead of the government’s if it receives more votes.

The key description of this budget is "restrictive", a term Finance Minister Elisabeth Svantesson used herself when describing the budget - so don't expect huge tax breaks or lots of handouts from the government to help with the rising cost of living.

Tax cuts on petrol and diesel

The largest post in the government's budget proposal is 6.84 billion kronor financing tax cuts on petrol and diesel, following up on election promises to lower petrol and diesel prices.

Most of the price decrease will be consumed by inflation, however.

The cuts will result in a decrease in prices at the pump of 14 öre for petrol and 41 öre for diesel, per litre, going up to 1 kronor per litre at the beginning of 2023.

In addition to this, the current (temporary) tax cut on diesel used in the agricultural industry will be extended, and the reduction obligation, the policy aimed at decreasing emissions by mixing fossil fuels with more expensive, but more environmentally friendly biofuels, will be lowered to the minimum level permitted under EU law from January 1st, 2024.

Tax cuts for pensioners

Pensioners are the only group in the new budget who will enjoy lower income tax from next year, so if you are over the age of 65 and still working, you can look forward to a tax break of around 1,900 kronor per year in most cases, with a max cap of 6,000 kronor per year.

This will cost the government 770 million kronor to implement.


Another expensive budget post for the government is the proposal to retain the higher level of A-kassa unemployment insurance implemented during the pandemic, which will cost the state 5.8 billion kronor next year.

This means that the ceiling for how much you can get per day, as well as the lowest possilble subsidy, will remain at the higher levels introduced during the pandemic.


This means that those receiving uninsurance benefits can still receive a maximum of 1,200 kronor per day if they earned 33,000 kronor per month or more before they became unemployed, rather than the 910 kronor available under the old system, which was offered to those with a previous monthly salary of 25,025 kronor or more.

Additionally, prior to the pandemic, workers had to be a member of a fund for 12 months before they could receive the insurance, and needed to have worked at least 80 hours per month for at least six months beforehand to be eligible.

During the pandemic, this was changed, meaning that workers only needed to have worked a minimum of 60 hours per month, and were entitled to compensation after only three months as a member. This will also be made permanent.


Increased support for solar panels and energy efficiency

Anyone considering installing solar panels or making their property more energy efficient will also benefit from the government's new budget proposal, which earmarks 28 million kronor to finance these measures.

This will comprise a 5 percent increase on the "green reduction" tax rebate, from 15 to 20 percent. This means that, for example, an individual installing solar panels at a cost of 100,000 kronor will now be eligible for a 20,000 kronor tax rebate, rather than the 15,000 kronor offered previously.

Travel subsidy for drivers

Those who drive long distances to work will also benefit from the new budget, as the government has decided to keep the current travel subsidy model, scrapping the previous government’s proposal to open the scheme up to those travelling by alternative forms of transport such as trains or bicycles.

The subsidy drivers will be eligible for will also increase, from 18.50 kronor per 10km to 25 kronor.


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