Sweden Taps Wider Surpluses to Boost Spending on Police, Defense
- Sees surplus in 2017 versus earlier deficit prediction
- Government says employment now at highest level since 1992
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Sweden’s government is tapping widening surpluses to raise spending on police, health care and education in the wake of the Stockholm terror attack as Prime Minister Stefan Lofven seeks to build support ahead of next year’s election.
The government now sees a surplus of 0.3 percent of gross domestic product this year, rather than the 0.2 percent deficit it forecast in December, according a supplemental 2017 budget released on Tuesday by the Social Democrat-led minority coalition. The surplus is set to increase to 0.6 percent in 2018 and 1.4 percent in 2019 as the government raises taxes.