The Economy Report. On Swedish Municipal and County Council Finances 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 2012.
The financial situation of municipalities and county councils appears increasingly troubling. The exceptionally weak state of the economy and lower employment will result in a substantial reduction in the growth of the local government sector’s income this year and next year. Municipalities and county councils will have to choose between improving efficiency, making reductions in services and increasing taxes. Many face a difficult budget process ahead of 2010.
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