Swedish Government Plans Narrower 2009 Surplus as Economy Slows

Sweden is experiencing higher unemployment and as a result the Swedish government has in it’s latest budge predicted a smaller surplus and possible deficit by 2010. The government has been aggressively cutting taxes to the labor force and to corporations in hopes that this will increase employment and stimulate consumption. 32 billion kronor ($ 4.8 billion) has been allocated to facilitate the tax breaks and increase research and promote infrastructure within the Scandinavian nation. Special Tax breaks to companies who employ those under 25 or over 65 have been instituted to lower unemployment and decrease the number of people living solely off of government programs. Similar tax breaks have been offered to employers of immigrant workers. With these tax breaks the Swedish government hopes to decrease government debt and increase GDP.