Swedish government borrowing increases as deficit grows
(Thomson Reuters ONE) -
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) |
+------------------------------------------------------------------+-----+-----+
| | 2015| 2016|
+------------------------------------------------------------------+-----+-----+
|Net borrowing requirement (budget deficit) | 80| 34|
+------------------------------------------------------------------+-----+-----+
|Central government debt |1,477|1,503|
+------------------------------------------------------------------+-----+-----+
|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) |
+-----------------------------------------+------+------+
| | 2015 | 2016 |
+-----------------------------------------+------+------+
| Government bonds | 86 | 88 |
+-----------------------------------------+------+------+
| Inflation-linked bonds | 18 | 18 |
+-----------------------------------------+------+------+
| T-bills | 125 | 135 |
+-----------------------------------------+------+------+
| Foreign-currency bonds | 93 | 91 |
+-----------------------------------------+------+------+
| - of which on-lending to the Riksbank | 53 | 69 |
+-----------------------------------------+------+------+
Contacts
Thomas Olofsson, Head of Debt Management, +46 8 613 47 82
Linda Wik, Public Relations Officer, +46 8 613 46 18
Central government borrowing ? forecast and analysis 2015:1:
http://hugin.info/133745/R/1895591/672370.pdf
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Source: Riksgälden via GlobeNewswire
[HUG#1895591]
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Datum: 19.02.2015 - 09:30 Uhr
Sprache: Deutsch
News-ID 372676
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