Sweden's central government payments will result in a larger deficit of SEK 32 billion in 2012, the Debt Office said Wednesday.
For 2013, the debt office expects a deficit of SEK 15 billion. In relation to GDP, the budget deficit for the central government will be 0.9 percent this year and 0.4 percent next year.
The office said lower tax income leads to somewhat weaker government finances compared with the previous forecast. Tax income has been revised downwards by SEK 17 billion for 2012 and by SEK 21 billion for 2013.
The reduction is only partially due to the economic downturn, the debt office said.
Going forward, the economy is expected recover, suggesting that the borrowing requirement will fall next year. The economy is forecast to grow 1 percent this year and by 2.3 percent in 2013.
by RTT Staff Writer
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