Swedish government borrowing increases as deficit grows

Press release 19 February 2015

Sweden’s central government budget deficit will grow this year as tax income slows and interest-rate payments increase. The Debt Office’s new forecast shows deficits of SEK 80 billion in 2015 and SEK 34 billion in 2016. The growing deficit will be funded by increased borrowing in both government bonds and T-bills.

The budget deficit – the net borrowing requirement – for 2015 is SEK 29 billion higher than in the previous forecast from December. Next year's deficit is SEK 21 billion higher than previously estimated. The raised forecast is mainly explained by lower tax income because of slower economic growth.

The Debt Office expects the Swedish economy to grow by 2.2 per cent in 2015, which is unchanged from the previous forecast. For 2016 the growth forecast is cut from 2.7 per cent to 2.4 per cent, mainly because of somewhat lower consumption and investments.

– At the same time, growth is held up by domestic demand, while demand from abroad is still weak, especially from the eurozone, says Director General Hans Lindblad. The lower growth rate next year leads to a slower increase in tax bases such as payroll and corporate profits.

Net borrowing requirement and debt (SEK billion)




Net borrowing requirement (budget deficit)



Central government debt



Central government debt as a percentage of GDP

37 %

36 %

Central government debt including on-lending and money-market assets as a percentage of GDP

30 %

29 %

Increased auction volume in government bonds and T-bills

To fund the growing borrowing requirement, the Debt Office will increase borrowing in government bonds by SEK 9 billion this year and SEK 11 billion next year. The auction volume is raised from SEK 3.5 billion to SEK 4 billion as of 11 March.

Borrowing in T-bills and liquidity management instruments will also increase. The auction volume in T-bills is raised from SEK 15 billion to SEK 17.5 billion.

The auction volume in inflation-linked bonds remains at the same level as in the previous forecast. A new 17-year inflation-linked bond will be introduced in the spring.

Borrowing (SEK billion)




Government bonds



Inflation-linked bonds






Foreign-currency bonds



–      of which on-lending to the Riksbank



Central government borrowing – forecast and analysis 2015:1, pdf


Thomas Olofsson, Head of Debt Management, +46 8 613 47 82
Linda Wik, Public Relations Officer, +46 8 613 46 18