Sweden’s 2027 transition budget: spending held at this year’s level – election pledges will have to wait
With no new government, Sweden is preparing a 2027 transition budget without new policy. What it means for taxes, fuel prices and election pledges.
Almost seven weeks after the Riksdag election, Sweden still has no new government – so the state budget for 2027 is set to be a pure transition budget. Ulf Kristersson’s caretaker government presented the principles for it on 27 October 2026: spending is to stay broadly at 2026 levels, and no new policy is planned. Many election pledges will therefore have to wait.
What the government has decided
According to the Ministry of Finance, the appropriations approved in the 2026 budget should in principle also apply for 2027. The government says the principles have been agreed with all parties in the Riksdag. Finance Minister Elisabeth Svantesson (Moderates) presented them at a press conference on 27 October. “This is not an ordinary budget bill with new policy,” she said, according to the magazine Fokus.
The 2027 budget bill must be submitted to the Riksdag by 12 November at the latest. If no new government has taken office by then, the caretaker government will submit the transition budget. It will remain in force until a new government has taken office and the Riksdag has approved that government’s amending budget.
Which exceptions apply
The budget will not be completely frozen. According to the Ministry of Finance, administrative and investment appropriations will be adjusted for prices and wages as usual. Rule-based benefit systems will follow economic developments and the number of people covered. Adjustments will also be made for laws already passed, international commitments and EU law, and wherever necessary to keep essential public functions running.
Svantesson gave two concrete examples. Some funding for the build-up of the Swedish Armed Forces will rise, which she says has the support of all parties. In addition, around four million kronor has been set aside to celebrate Crown Princess Victoria’s 50th birthday next year. According to SVT, Svantesson described this as a reasonable exception.
One important principle concerns temporary measures: clearly time-limited initiatives from previous budget years that expire at the end of the year will not be extended.
Election pledges will have to wait
For many households, the transition budget mainly means that promised relief will not arrive for now. According to Fokus, the budget leaves out higher child benefit, tax cuts, the abolition of the karensavdrag (the sick-pay deductible), and cheaper preschool, dental care and public transport, among other things. A future government can only introduce such measures through a later amending budget.
Politically, the matter is not yet settled. According to Fokus, parties can submit amendments or their own complete alternative budgets until 27 November. A joint motion from the former Tidö parties is one possibility. It is still unclear whether any party will challenge the transition budget.
Background: government formation at a standstill
The situation is a result of the difficult government formation. In mid-October the Riksdag rejected Social Democrat Magdalena Andersson as prime minister, and on 26 October Centre Party leader Elisabeth Thand Ringqvist handed back her mandate to explore a new government. Read more in our report: Thand Ringqvist hands back mandate. Riksdag Speaker Andreas Norlén then announced that he would discuss the next steps with the party leaders.
What this means for travellers and people in Sweden
Fuel is likely to become more expensive from December. Independently of the transition budget, a temporary cut in the carbon dioxide tax on petrol and diesel is coming to an end. According to Skatteverket, the Swedish Tax Agency, the tax was reduced by SEK 2.40 per litre from 1 July to 30 November 2026. Unless there is a new political decision, the higher rate will apply again from 1 December – around SEK 3 per litre including VAT. How much of this shows up at the pump also depends on oil prices, exchange rates and filling stations’ pricing. Anyone touring Sweden by car should factor this into their travel budget; you will find tips in our guide Driving to Sweden.
For residents and people moving to Sweden: election pledges such as lower taxes or higher child benefit are not adopted policy at present. Existing rules and benefits, however, continue to apply. Anyone expecting changes from January 2027 should wait for the budget bill on 12 November and for information from the government and Skatteverket.
For tourists, little changes in everyday life for now: the state remains fully functional and public services continue.