Political Economy


The Swedish government budget proposed today could be sabotaged by the opposition. The Finance minister is getting politely annoyed

Wednesday, 18 September 2013
The reaction to the Swedish government's budge proposal announced a few hours ago by the minister of Finance, Anders Borg has started coming in, and it is not good for the minister. The Minister is thus reacting by getting really annoyed.
There has been a visible row between the government and the opposition when bits of the budget were being released last week. The Opposition, Red-Green parties had been critical of some policy stance the government was proposing in the budget and now they are bent to "sabotage" it.
The Red-Green has decided to go ahead with its plans to cut part of the government's tax package and this is something, Finance minister, Anders Borg is not happy about.Alliance
The opposition strategy had been to stop part of the government's new tax package in parliament. Now, they have decided to start working to undo the tax policy straight away.
According to news agency TT , the Social Democrat - led opposition coalition on Thursday will submit a proposal to the tax Committee to ask the Finance Committee to reject a fifth earned income tax credit and the higher tax threshold for state tax being proposed in the budget.
The two proposals (earned income tax credit and the higher tax threshold) will, according to the Left Party's economic policy spokesperson, Ulla Andersson to be treated separately.
This means that the government lacks a majority in parliament in regard to the increase of the threshold, as even the far rights, Sweden Democrats oppose a higher limit for state taxes.
The Red-Green behaviour has aroused great anger in the governing Alliance coalition, accusing the Social Democrats and its coalition for breaking the budget law and making up with the far rights, Sweden Democrats.

On Wednesday, Finance Minister Anders Borg accused the Social Democrats of engaging in a tactical game.
"It can have serious consequences if the Social Democrats abandon their practices. I think you should take responsibility for Sweden's economic policy. I think you should cherish a unified budget process across the block boundary and do not make plans for a political game, "he says.

However, some people are asking whether the Conservatives put in policies in the budget, which they knew the far rights would reject and so if the Red green side with them, they will be accused of working with the far right. It is also a tactical game from the government.
More interesting and exciting game to follow

Scancomark.com Team

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