Eksjö is one of the municipalities that has long struggled to get the budget in balance. And now the negative trend has broken.

- It is extremely positive to once again have an economy that is in balance, says Karin Holgfors, chief financial officer of Eksjö Municipality.

But it has been a tough year for the municipality. In 2017, the deficit was close to 26 million and in 2018 it was 10 million. Several measures have been taken to reverse the negative trend.

- Yes, you have been given the choice to make difficult political decisions, such as changing working methods and choosing certain things to do in the business.

Has this affected quality in some areas?

- It has not been worse, but they have been forced to have a different level of ambition. And that level of ambition sets politicians.

In 2017, restrictions were placed on employment and procurement in the municipality and organizational changes have also been made. In 2019, the municipality received a much-anticipated plus result of just over SEK 23 million.

Required foresight

Karin Hölfors reports that the largest expenditure item for a municipality is the personnel cost in care, school and pre-school. And there may be a budget deficit as volumes increase and there will be more older and larger groups of children. Then the costs increase more than the revenue.

- Income also increases when you have a population increase, but not as much as the costs.

Still feel like something that should be planned for?

- You can absolutely, for some cost increases. But for example in 2015 during the refugee wave we had a volume increase that we did not have in the planning conditions.

She continues:

- We have a financing principle in this country as well, if the state pushes a task to the municipalities then you should also send with financing and it is extremely important that you do so. It is also important that the government grants you decide on have a forward look and a stability.

How does it work?

- Sometimes it can be a little difficult. One might wish there was a little better anticipation.