Earlier this week, the Swedish Association of Local Authorities and Regions (SKL) admitted, by 2020, municipalities face a funding deficit of 40 billion Swedish Krona (£3.5 billion) to finance services like hospitals and nursing homes.
“Demographic trends show that, with more children and more elderly people, the need for local government services is expected to grow significantly faster than the tax base,” says Annika Wallenskog, chief economist at SKL.
Andersson told Swedish Television News (SVT) that “it is quite obvious that we have big problems” as a result of the demographic changes aggravated by mass migration.
The Socialist minister stressed the country must hire more staff and build more facilities, and said politicians cannot afford to promise any tax cuts.
Sweden’s National Audit Office announced in November that it believes the government “underestimates public spending”.
In a piece published by Dagens Nyheter, the office remarked: “”If the government’s forecasts are realised, Sweden will be required to make significant reductions to welfare, and municipalities significant cuts by 2020.