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flag Sweden's 2026 budget, an $8.5 billion stimulus, boosts spending and cuts taxes to spur growth ahead of next year’s election.

flag Sweden's government has unveiled an 80-billion-crown ($8.5 billion) 2026 budget, the largest fiscal stimulus since the pandemic, aimed at boosting economic growth ahead of the September 2026 election. flag The plan includes tax cuts for workers, pensioners, and businesses, reduced VAT on food, increased defense and social spending, and support for housing and public services. flag Designed to revive consumer confidence and counteract stagnation from trade tensions and past inflation, the budget leverages Sweden’s low debt level—around 32% of GDP—to fund expansion without major fiscal strain. flag While critics call it a politically motivated short-term fix, the government maintains it is essential for economic stability and long-term resilience.

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