In case you thought Sweden knew how it worked:
Sweden Pledges to Keep Budget Balanced as Economy Slows
Sept. 20 (Bloomberg) — Sweden pledged to keep budget
surpluses intact as Europe’s debt crisis and slowing U.S. growth
threaten to stifle the largest Nordic economy’s expansion.
Sweden’s budget will be in balance next year after a
surplus of 0.1 percent this year, Finance Minister Anders Borg
said today at a presentation of the 2012 budget in Stockholm.
The economy will grow 4.1 percent in 2011 and 1.3 percent in
2012, the same as estimated in August, he said.
“We now have the freedom to act and room to maneuver that
we need if the situation deteriorates,” Borg said. “If we end
up with a really serious downturn we should of course have some
kind of deficit but those deficits should not be so big that
they create uncertainty.”
Prime Minister Fredrik Reinfeldt said last week that his
minority government will ensure the budget steers clear of
deficits in case more stimulus is needed should the European
debt crisis deepen and global growth slows. The government last
month scrapped planned income tax cuts amid narrowing surpluses
and opposition from a majority of parliament.