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The Stockholm region, with a population of just over two million, has the second largest public budget in the country. Looking ahead to 2020, the economic situation looked bleak with reduced tax revenues and a declining economy. But the year of the pandemic has meant completely different realities, and in the annual accounts, which Irene Svenonius describes as exceptional, the region’s benefit ends at 5.8 billion, with a budget of 108 billion.
– What has accumulated a surplus are specific effects, government subsidies and that we have a debt with the population, says Irene Svenonius.
According to the financial statements, the result is lower pension costs, higher and more targeted government subsidies, as well as capital gains from the sale of properties. The co-pandemic has also caused a temporary decrease in ordinary care, which in itself has reduced costs by 2020. The value of the so-called care debt, of care not provided during the pandemic, is estimated at 1.8 billion Swedish crowns.
– We will take responsibility for this large surplus over the next few years, making as large a provision as is legally possible in a profit offset reserve, says Irene Svenonius, who states that 3.2 billion will be reserved in this way.
The Local Government Law allows a certain provision of a positive result to offset future deficits.
– We can use these funds to cover the reduction in tax revenue that could be the effect of the recession we are in now. In this way, we can guarantee healthcare and public transport in the future. Otherwise, we would be forced to make big savings.
Irene Svenonius says that one In the quarterly report 2, in September it was seen that the region was heading for a surplus of one billion, which was then estimated at 3.3 billion.
The region has also repeatedly demanded compensation from the state for expenses during the pandemic, most recently in September. The region has received 2.3 billion unspent state funds.
– We have received grants from the general government. And the surpluses correspond to negative items related to COVID in the financial statements. It is an exceptional year in which we have not been able to use our operations normally.
But is there a point in a public budget to put money up? Haven’t you held the reins too tight then?
– The point is not to put money up high. I also think that the Minister of Finance thought that tax revenues would go down more last year. There is no end in itself in a surplus. But also to avoid spending money unnecessarily.
“Putting money in a bank account when the house is on fire is the wrong choice,” says opposition regional councilor Aida Hadzialic (S).
Photo: Paul Hansen
The criticism comes from the Social Democratic opposition. When it became clear over the summer that the region was heading for a billion-dollar surplus, the money could have been used more efficiently, says opposition regional councilor Aida Hadzialic (S).
– Forces should have already been gathered to satisfy these great assistance needs of the population. Putting money in a bank account when the house is on fire is a bad choice. The billion-dollar surplus indicates a lack of leadership, says Aida Hadzialic, who believes the money could have been better used despite the pandemic.
– It would have been possible to divide this surplus into three parts and put a part in a fund and parts used for health. Instead, we have a situation in this region where people are forced to make cuts, for example in hospitals and more recently in women’s health care, even though there is money.
In general, the country did municipalities and regions, which normally struggle to achieve a balanced budget, a result of 51.5 billion in 2020. This is mainly due to the substantial additions of state subsidies to cope with the covid pandemic and the reduction in demand for called welfare services, particularly health care, says Annika Wallenskog, chief economist for Swedish municipalities and regions. Wallenskog also highlights a very low net cost development in 2020, of around one percent.
– The explanation for the low-cost development is that there has been a low demand for medical care in addition to covid care. What may concern you is that people did not apply for cardiovascular disease, diabetes and cancer that can get worse over time, says Wallenskog.
The regions, despite the pandemic performed 80 percent of the surgeries.
– What is more worrying are other diseases.
The surplus is also not something you profit from: it was entered into accounts in 2020, says Annika Wallenskog. Public budgets differ from their commercial counterparts.
– In a company, a surplus means that many have even wanted to buy goods or services. Here it is the opposite. There is no intrinsic value for a municipality or region to have a large surplus.
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