Sweden Debt Office sees record state budget surplus

Sweden's Debt Office forecast on Monday a record central government budget surplus in 2007 due to a surging economy and higher tax income, and also raised its outlook for 2008. The Debt Office forecast a surplus of 138 billion Swedish crowns ($19.60 billion) in 2007, compared with an estimate of a surplus of 112 billion in its last outlook in February.
It raised its surplus forecast for 2008 to 118 billion crowns from 82 billion. "The state finances are getting stronger and stronger against a background of good growth, a fast increase in employment and privatisation income," the Debt Office said in a statement.
It said the forecast includes income of 50 billion crowns from the government's planned sale of state assets in both 2007 and 2008, but also added that the forecasts held a higher degree of uncertainty due to these plans. "It was an even bigger surplus than we had expected," said Knut Hallberg, analyst at Handelsbanken. "It shows an extremely strong development for tax income and lower government expenditure, due to the strong economy and the strong job market."