Municipalities are "hitting the brakes" to counter the recession

5/16/2023, 4:18:17 PM

Highlights: New report from Swedish Association of Local Authorities and Regions, SALAR, shows that the economic situation looks tough. The municipalities and regions are expected to go back a total of SEK 24 billion in 2023. This year, the majority of regions and one in six municipalities are budgeting with a negative result. According to SALAR's report, it is mainly cost increases due to inflation that create problems. municipalities have also faced increased pension costs, says Per Hollertz (M), a municipal commissioner in Valdemarsvik.

The municipalities will have to keep a tight grip on their wallets in the coming years. A new report from the Swedish Association of Local Authorities and Regions, SALAR, shows that the economic situation looks tough. – We have lived in a doped economy, says Per Hollertz (M), municipal commissioner in Valdemarsvik.

Sweden is heading into a recession. This can be seen in this spring's financial report from SALAR. After several years of good finances and strong financial results, the situation has been reversed. The municipalities and regions are expected to go back a total of SEK 24 billion in 2023.

Valdemarsvik is one of many municipalities that have now begun to change.

"In the emergency situation, you have to hit the brakes, but also produce proposals on how we can get the economy in order," says Per Hollertz (M), who is a municipal commissioner in Valdemarsvik.

This year, the majority of regions and one in six municipalities are budgeting with a negative result. According to SALAR's report, it is mainly cost increases due to inflation that create problems. Municipalities have also faced increased pension costs.

"Our pension costs have increased by SEK 18 million in one year and we estimate that SEK 14 million is due to inflation," says Per Hollertz.