FALCON POWERS – The Swedish government has embarked on a significant increase in the defense budget, raising it to 2.5% of the gross domestic product until the year 2030.
This amounts to approximately $100 billion or around 1.1 trillion Swedish kronor. The total amount of the budget is 1,000 billion kronor, which will be allocated for equipping the Swedish army until 2030.
All parliamentary parties in the Parliamentary Defense Committee have agreed on this budget, recognizing the need for extensive rearmament of the Swedish army.
However, Swedish parties within the committee differ on the sources of funding for this substantial increase. Where will the funding come from? Will it be through cuts in state budgets or the introduction of new taxes?
The newspaper reports a significant disagreement regarding how to secure the funds.
The opposition Socialist Party advocates for funding the armament expenses through increased taxes on high-income individuals (the wealthy).
However, the Swedish government parties strongly oppose raising taxes on the wealthy.
According to Swedish television, the funding method has not been finalized yet. The GDP of Sweden in 2022 amounted to approximately $592 billion, which is equivalent to 6,000 billion Swedish kronor.
The deduction percentage for the defense budget and the Swedish army will be 2.5% annually, approximately 150 billion kronor per year. By 2030, the targeted total budget will reach 1,000 billion Swedish kronor.
After that date, the budget will continue at a minimum of 2% annually (NATO requirements) or will be increased as necessary.
