Swedish government boosts subsidies for energy, fuel in election year spring budget
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The extra spending of around 7.7 billion Swedish crowns (S$1.05 billion) comes ahead of a parliamentary election in September.
PHOTO: REUTERS
STOCKHOLM – Sweden’s government will cut fuel taxes and hike electricity subsidies in its spring mini-budget, it said on April 13, as it strives to ease the pain for households of higher energy bills driven by the war in Iran.
The extra spending, coming ahead of a parliamentary election in September, will total around 7.7 billion Swedish crowns (S$1.05 billion) and comes on top of a bumper 80 billion crowns in new spending already announced in September 2025 in the full-year budget bill for 2026.
“Sweden is on the right path. Despite war and uncertainty abroad, the Swedish economy is strong, and we continue to build safety barriers around it,” Finance Minister Elisabeth Svantesson said in a statement.
The price of oil has soared since the US and Israel launched the first wave of attacks on Iran, leading Tehran to respond with missile strikes across the Gulf and closing the Strait of Hormuz.
While the economy has so far shrugged off any major effects, there are concerns a long-lasting conflict could push up inflation, hit growth and lead to higher interest rates.
The temporary boost to electricity subsidies for households in the spring budget will cost around 2.4 billion crowns and the cut to fuel taxes 1.6 billion.
Other measures include more money for Sweden’s space programme, healthcare and job creation. REUTERS
