pic: regeringen.se
This is twice in the same year the government surplus objective – aka överskottsmålet, is coming to the fore in news. The first time was only last August, when – “oops” – the National Debt Office was 6 billion kronor off estimating the government’s tax income: Suddenly the Social Democrats and Green parties had a lot less money to spend on fave projects than they thought. But due to the surplus (read about it here), Sweden still had funds in the bank if needed.
Now, however, Minister for Finance Magdalena Andersson is looking over at that surplus like it’s a dessert cart. Instead of a surplus objective, SvD reports, she’s advocating a budget “balance goal” – a balansmål. Instead of having a surplus, in case of a rainy day or financial downturn, the new goalpost would just be a balanced budget. The 16 billion kronor that would suddenly become available, could be used, she says, for things like infrastructure, the police force or health care.
The government surplus objective isn’t up for debate before 2024 – eons in political time – but Andersson is hoping for an earlier review date. The Left and Green parties are already on her side, but others are more wary. The mandatory surplus (which has already been cut down in size since the financial crisis of the 90s when it was first instituted) was put in place for a reason – as a safeguard for a time when the state’s finances might be truly desperate. Most analysts don’t think we’re there right now, so there’s no reason to use the surplus.
After all, as the Swedish saying goes “she who sets by, gets by” (hon som spar, har).