Political Economy


The Swedish government released its budget today wants to invest Skr24.2 billion

Wednesday, 18 September 2013
The Reinfeldt government has just released its last budget before the election of 2014 and one aim here is that the state will strengthen reforms through its financial department so that some Skr25 billion would be invested. Nevertheless, the most worrying unemployment will continues to remain high.

The Swedish government is implementing reforms  that would aim at investing some to Skr 24.2 billion in 2014, to support growth and jobs, the government writes in the autumn budget just officially release.

"Sweden has a position of strength that allows fiscal policy to provide support with measures for growth and jobs creation to prevent unemployment from becoming entrenched, "Minister for Finance, Anders Borg said in a comment in a press release.Minister for Finance, Anders BorgMinister for Finance, Anders Borg giving a briefing about the budget / image / Swedish Ministry of Finance

The government says that the Swedish economy has clearly been influenced by the past year's economic downturn abroad. Growth has slowed down again and is expected to be low this year, and then gradually accelerate. Unemployment is not expected to reduce apparently until the end of 2015.

"But there is still considerable uncertainty about how the economy will evolve and the chances are still being weaker than forecast shows "the government wrote.

The prolonged recession means that the public finances are expected to show a deficit in both 2013 and 2014. The stronger economic growth in subsequent years makes that net lending is expected to gradually grow and surplus target of 1 percent of GDP reached in 2017.

The government says that the budget proposes measures to support growth and sustained increase employment,  strengthen students' knowledge and competitiveness of Swedish enterprises, enhance the welfare and cohesion in Sweden, as well as protecting the environment and the climate.

There are already known proposals such as a fifth-work tax credit, higher limit for state income tax threshold and lower taxes for pensioners. There is also support for integration into employment environment, apparently targeting the relaxation of the Swedish discriminatory jobs market where people with none Swedish sounding names and Africans are wantonly repudiated from jobs and careers. Also there will be investment in apprenticeships and vocational programs, and reduced social security contributions for the youth employment.

It also proposes actions for the school, including more teaching  and teacher training in mathematics, homework assistance and measures to develop teachers' skills and career opportunities. Furthermore, the housing market to be improved by simplifying the planning process and regulatory framework for new construction of rental apartments.
by Scancomark.com Team

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