Monday, August 15, 2016

Battle for the autumn budget is running – Swedish Dagbladet

Finance Magdalena Andersson (S). Photo: Janerik Henriksson / TT

Next week collected Government Harpsund budget deliberations. Then Finance Minister Magdalena Andersson (S) to present new figures for the Swedish economy, which right now looks strong. But there are uncertainties how brexit can affect the economy and how many refugees will.

Back in the spring the government revealed one of the main numbers for next year’s budget. The annual state grants to local governments should be increased by ten billion, and most should go to the municipalities that have received the most refugees. The money can be used, for example to hire more in the education and care.

So far, finance minister not talked about how the ten billion to be financed, but Magdalena Andersson has said she do not see any obstacles to borrow money.

the Left Party, which is involved in the negotiations on the budget, see the ten municipal billions a V-success. The party would also push through free medicine for everyone over 80 years, which is estimated to cost 850 million kronor, increased maintenance for single parents and improvements for long-term patients.

– There is a small hell itself to be ill, says V’s economic policy spokesperson Ulla Andersson.

– Our main priority in the negotiations is to even out economic disparities. The economic gap is too large.

V wants to finance the proposals by reintroducing the wealth tax, a new variant. But so far, the party has been given the cold shoulder by the government.

Vulnerable suburbs, terrorist threats and demands for more police have been discussed extensively during the spring and summer. National Police Commissioner Dan Eliasson believes that up to 2,500 more police are needed in the coming years. Police received more resources already in the spring, but Interior Minister Anders Ygeman (S) has also said that the government can come back in the autumn budget.

Since the last budget, the government has tightened its asylum policy properly. This has resulted in fewer asylum seekers, but the needs are still great in terms of housing, jobs and education for new arrivals. Suggestions for dealing with the refugee situation is therefore not a long shot in the budget.

Despite the large spending needs believes the government’s own expert authority, Institute of Economic Research (NIER), that the government will tighten. KI has called for tax increases or spending cuts.

– It is best to be tight the year when it is booming, and so, it is now, says Institute’s forecasts CEO Jesper Hansson.

– We saw the need for income support, long before the refugee crisis, he adds, pointing out that the major cost in future is that fewer and fewer people will have to support an aging population.

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