Sweden: New government begins cuts – Reduces international aid

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In particular, the appropriations for aid to refugees will be reduced, to which a maximum of 8% of the total amount of appropriations is imposed

Sweden, one of the main countries worldwide that contribute to development aid, will make drastic cuts in appropriations which provides for this purpose, according to the draft budget presented today by the new right-wing government.

For its 2023 budget, conservative Prime Minister Ulf Kristerson’s government plans to reduce Swedish international aid by 7.3 billion crowns (about 670 million euros) next year and by 2.2 billion more in 2024, according to the budget plan it presented.

By cutting aid by about 15 percent from what was planned, the kingdom will also abandon its goal of devoting 1 percent of its GDP to international aid.

Mainly appropriations for aid to refugees will be reduced; in which a maximum of 8% of the total amount of credits is imposed.

According to the specialist website Donor Tracker, Sweden was last year in absolute terms the eighth country in the world that offered the most international aid and third compared to its economy, contributing 0.92% of its GDP, behind Luxembourg and Norway.

Cutting international aid was part of the program of the new right-wing government, which for the first time relies on support in parliament from the far-right anti-immigration Sweden Democrats (SD) party.

Since 1975, Sweden has exceeded the UN recommendation for countries to devote at least 0.7% of their national wealth to international development aid.

Despite the downward revision of growth forecasts, with GDP expected to decline by 0.4% next year and grow by 2% in 2024, the 2023 budget presented today projects a surplus of 0.7% GDP.

With additional spending totaling 40 billion kroner, it foresees mainly significant spending to cut fuel taxes and increase defense appropriations, as well as to keep unemployment benefits at their current levels, as demanded by the Sweden Democrats.

Police funding, as well as appropriations to prepare for new nuclear power plants, are also on the rise.

The result of an agreement between the four majority parties (Moderates, Christian Democrats, Liberals and SD), the draft budget was submitted to parliament to be adopted by the end of the year.

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