Swedish central government payments resulted in a deficit of SEK 38.9 billion in April. The Debt Office's forecast was a deficit of SEK 6.8 billion. The deviation is mainly due to lower tax income than expected and payments for short-time work allowances. The deficit was counterbalanced by a repayment of loans amounting to SEK 17.7 billion by the Riksbank.
The primary balance was SEK 49.5 billion lower than expected. Tax income was approximately SEK 25 billion lower than forecasted. Tax income was in particular lower from companies and payroll taxes. At the same time, payments from the tax accounts were SEK 15 billion higher than anticipated. The payments from the Swedish Agency for Economic and Regional Growth were SEK 16 billion higher than forecasted as a result of the agency’s responsibility for processing the allowances for short-time work. In addition, the payments from some other agencies such as the Legal, Financial and Administrative Services Agency and the Swedish Transport Administration were slightly higher than forecasted.
The Debt Office’s net lending to government agencies etc. were SEK 17.7 billion lower than calculated. This was due to a repayment of loans in foreign currency by the Riksbank. The loans matured in April but were refinanced in March. Thus, it is a question of a redistribution of net lending between March and April
Interest payments on central government debt were SEK 0.3 billion higher than forecasted.
For the twelve-month period up to the end of April 2020, central government payments resulted in a surplus of SEK 27.6 billion.
Central government debt amounted to SEK 1,148 billion at the end of April.
The outcome for May 2020 will be published on 5 June at 9.30 a.m.
The virus outbreak will lead to large deficits during the forecast period, 2020-2021
The outbreak of covid-19 will have serious consequences for economic development both in Sweden and the rest of the world. A number of different economic measures have been taken to mitigate the effects. Income for companies and employees will be lower than previous forecasted as a result of the economic downturn. Expenditure is also expected to increase in addition to the economic measures presented.
The Debt Office intends to return on 19 May with an overall assessment of the economic development, forecasts of the central government budget balance and borrowing in the report “Central Government Borrowing – Forecast and Analysis 2020:2”.
Contact
Press Secretary, +46 (0)8 613 47 01
| Budget balance and central government net borrowing requirement1 (SEK million) | |||||
| Outcome Apr. | Forecast Apr. | Deviation Apr. | Acc. Dev2 | Outcome 12-month | |
| Budget balance | -38 895 | -6 810 | -32 085 | -48 809 | 27 647 |
| Net borrowing requirement1 | 38 895 | 6 810 | 32 085 | 48 809 | -27 647 |
| Primary balance3 | 58 776 | 9 252 | 49 524 | 40 283 | 2 463 |
| Net lending to agencies etc.4 | -19 849 | -2 136 | -17 712 | 10 231 | -52 461 |
| Interest payments on central government debt | -33 | -306 | 273 | -1 705 | 22 352 |
| - Interest on loans in SEK | -811 | -754 | -57 | -2 622 | 16 496 |
| - Interest on loans in foreign currency | -112 | -46 | -66 | -212 | -400 |
| - Realised currency gains and losses | 890 | 494 | 395 | 1 129 | 6 256 |
| 1 The net borrowing requirement corresponds to the budget balance with opposite sign. | |||||
| 2 Sum of monthly forecast deviations since last forecast (February 2020). | |||||
| 3 Net of the state's primary expenditure and income. | |||||
| 4 The net of government agencies etc. deposits and loans in the state’s internal bank. The net lending includes both current government operations and temporary occurrences which can be decided on short notice.The net lending affects the net borrowing requirement and central government debt, but are not covered by the Central government expenditure ceiling | |||||
More data on the borrowing requirement and government debt:
https://www.riksgalden.se/en/statistics/statistics-on-central-government-borrowing/
The monthly outcome of the central government net borrowing requirement is included in the official statistics of Sweden.
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