SKL: 90 municipalities risk financial deficit this year

According to Anders Knape, the reason for the municipalities' bleak economic outlook is a combination of the proportion of young and older people increasing and that Sweden is on the way into a recession.

- Yes, it is clear that we have a strong demographic development where we are increasing in the population both in terms of living longer and that more children are born, it is easier to manage it in a boom when we have growth in the economy, says Anders Knape to Ekot.

Based on a survey from the municipal finance director, SKL's report estimates that some 90 municipalities and seven regions may be in deficit as early as 2019.

The Labor and Interest Organization estimates that more than 20 municipalities and some regions will raise taxes in 2020 to meet the economically tough times.

Despite this, SKL is expected that municipalities and regions will lose SEK 43 billion in 2023 if the costs increase in line with the population and the state does not add more resources.

- These are difficult situations that our members experience, says SKL chairman Anders Knape when the forecast for the regions and the municipalities' finances is presented.

SKL makes the assessment that the municipalities will now have to try to streamline their operations, adopt new technology and consider what to deliver and in what form.

- Then there will be a need for subsidies from the state in the form of increased general government grants and it will also in its turn lead to the consequence that the tax levels will be raised, says Anders Knape.

According to SKL, the state should take greater responsibility for welfare by, among other things, reducing the detail management and the targeted government grants and taking greater responsibility for the demographic development.

The interest organization also proposes to the state a pilot project where selected municipalities are exempted from certain state detailed regulation and gain greater autonomy over certain areas.