Sweden Unveils Budget With Tax Cuts to Boost Recovery (1)

Sweden’s government submitted a budget bill with tax cuts that are aimed at fueling an economic recovery, following two years of price hikes and interest-rate increases that have hit consumers and businesses.

After declaring victory in the fight against inflation, Prime Minister Ulf Kristersson’s cabinet has shifted from a policy that sought to avoid fueling further price increases to a spending ramp-up aimed at supporting households and spurring growth.

On Thursday, the center-right government announced a 2025 plan that entails 1.4 trillion kronor ($141 billion) in spending. “Despite a projected public-sector deficit of 1.3% of gross domestic product, debt ...