Political Economy



Swedish debt office excited and to raise tax collection forecast as the central government finance continues to improve

Monday, 07 October 2013
State tax revenue has been 10 billion higher than expected for the past four months. The Debt Office is not raising its forecast for the tax collection.

The Swedish state collected more e tax revenues, higher than expected in September; the National Debt Office announced today which also includes government borrowing.

In it, the Swedish central government payments resulted in a surplus of Skr28.3 billion in September. The Debt Office’s forecast was a deficit of Skr 6.2 billion. The difference of Skr 34.5 billion is largely due to the government selling shares in Nordea. In addition, on-lending to the Riksbank decreased and tax income was higher than expected.
The government sold all of its remaining shares in Nordea Bank for Skr 21.6 billion in September. The sales income was not included in the Debt Office's forecast.

The Debt Office's on-lending to the Riksbank decreased by just over Skr 9 billion during the month. This is explained entirely by the fact that on-lending to the Riksbank, which according to the forecast should have been refinanced in September, was refinanced already in August. The remainder of the deviation from the forecast is mainly due to higher tax income.

Interest payments on central government debt were Skr 0.6 billion higher than forecast.

For the twelve-month period up to the end of September 2013, central government payments resulted in a deficit of Skr 126.0 billion. Central government debt amounted to Skr 1,200 billion at the end of September.

In June, August and September, tax revenues have been higher than expected. in July it was as expected according to the Debt Office. Overall, tax revenues have been Skr10 billion higher than expected in the last four months.

"Payroll taxes have been as expected. The difference depends on the capital and consumption taxes, "says Håkan Carlsson og the Debt Office.
"We will take account of this in our next forecast (over borrowing requirement) released on October 23. "
He continued that their forecast will go up but he thinks that it is too early to write up GDP forecast due to the unexpectedly favourable tax outcome.
by Scancomark.com Team

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