The Economy Report. is a series published twice yearly by the Swedish Association of Local Authorities and Regions (SALAR). In it we deal with the present economic situation and developments in municipalities and county councils. The calculations in this issue extend to 2015.
The local government sector will report a good level of net income for 2010. Next year tax base growth will not compensate for the withdrawal of the temporary cyclical support from central government. This will weaken the financial situation of the sector, although positive net income is also foreseen for 2011. However, the calculations presented in the report suggest that it will be more difficult for municipalities and county councils to balance their budgets in the future.
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