"Budget proposal for 2024: from right to left"

The government's budget bill for 2024 has now been presented in its entirety - does it contain any unexpected elements from your respective perspectives?

Cecilia: - The fact that the limit for paying state tax is not being raised as planned is unexpected. Especially since Finance Minister Elisabeth Svantesson has signaled that it is important for it to be profitable to get an education. It is obvious that the government does not want to create a conflict with the opposition about favoring those who earn more in this difficult economic situation. Instead, they chose broader tax cuts that will benefit the majority.

Mattias: - The overall result was roughly as expected; slightly tighter on the expenditure side than the National Institute of Economic Research deemed realistic, a right dispute over the cut-off point for state income tax and a strong focus on law and order.

Are the initiatives and reforms in proportion to Sweden's challenges?

Mattias: - Both yes and no. When it comes to resources for defense and law enforcement agencies, few are probably disappointed - the government is focusing heavily on NATO membership and tackling gang crime. At the same time, there was probably a greater expectation of structural reforms that prioritize growth and entrepreneurship. However, the situation with inflation, a weak krona and a depressed economy is clearly complicated - it can be risky to proceed too quickly. Many promised reforms, such as benefit caps, are still under investigation.

Cecilia: - No. Above all, state subsidies to municipalities and regions are inadequate. Their finances have deteriorated considerably, and they had hoped for greater government commitment and support in the budget. There is now a risk of significant cuts in schools, health, and social care. The gaps in society will increase.

In which areas will the opposition be united when they now present the alternatives in their shadow budgets?

Cecilia: - In particular in the criticism against that the support to the municipalities and regions is too small and that it will affect children as well as patients in the health care system and the elderly in the care system. The opposition will insist that the government is leaving the municipalities and regions in the lurch - which ultimately affects the most vulnerable. Environmental and climate issues are also sidelined. Issues relating to the study associations and their reduced funding are also a clear priority, which will trigger calls for action across the country.

Mattias: - Larger government grants to regions and municipalities will probably be a shared read thread. Investments in the environment and climate will probably also be more extensive in the various shadow budgets presented in the coming weeks.

Mattias Keresztesi, Director of Business Development & Partner, and Cecilia Eklund, Senior Consultant & Partner, were interviewed by Ebba Berg Gorgén, Consultant. "3 Quick Questions..." is a series of interviews conducted by New Republic.