Sweden's new right-wing government will cut fuel taxes and give extra cash to the military and police in its first budget since winning a general election in September, it said on Monday, APA reports citing Reuters.
With Sweden's economy expected to slip into a mild recession next year, the Moderates and Christian Democrats - along with two parties that support them in parliament - said fiscal policy would have to be responsible in the coming four year period.
"The starting point for the budget is to make sure that the Swedish economy can withstand the difficult economic times that are ahead of us," the four parties said in an article in Dagens Nyheter newspaper.
"High inflation argues for restraint in fiscal policy."
The four parties gave no figure for how much the main budget measures would cost or by how much the government would increase spending.