The Swedish Teachers Union believes that the budget risks forcing major cuts in schools:

"It has devastating consequences. Classes will be larger, students who are in need of special support risk not getting it, says Jaara Åstrand.

"We are in redundancy negotiations and teachers risk being dismissed in a situation where schools are crying out for more teachers because there is a lack of money.

According to the Swedish Association of Teachers, the SEK 12 billion corresponds to just over 19,000 primary school teachers.

But at the same time, the National Institute of Economic Research claims that too much money to municipalities would have risked further fuelling inflation?

"We've done the math. EUR 12 billion would have an inflationary impact of between 0.04 and 0.12 percentage points. This is comparable to an inflationary effect of energy support, and then the government argued that it is not relevant.

SKR: "Really tough now"

Inflation and interest rate hikes have contributed to increased costs and a strained economy for many municipalities and regions – which warn of cuts.

"It's really tough now," says Annika Wallenskog, chief economist at the Swedish Association of Local Authorities and Regions (SKR).

She says that 17 out of 21 regions had a budget with a deficit, a total of minus SEK 9.5 billion. 48 municipalities have posted a budget with a deficit.

"And next year looks even worse," says Annika Wallenskog.

SALAR understands that the budget is restrained in view of the high inflation, but is dissatisfied with the fact that municipalities and regions are now being kept on their toes. They are forced to wait until the autumn budget before announcing new money:

"Without a decision today, you have to take action on the basis that you may not get any money at all. Then you might cut back on welfare in various places completely unnecessarily – and then it may turn out that money will come, says Annika Wallenskog