STOCKHOLM, May 19 (Reuters) - Sweden’s government will run a budget deficit of 402 billion Swedish crowns ($41.54 billion) this year, the Debt Office said on Tuesday, as a result of a massive spending boost to support the economy and soften the blow from the coronavirus pandemic.
“The downturn in the economy and the support measures taken lead to a large deficit in the central government budget and to increased government debt,” the Debt Office said in a statement.
“The Debt Office is meeting the deficit by increasing borrowing in all debt instruments.”
In its previous forecast, the Debt Office expected a deficit of 14 billion crowns this year. ($1 = 9.6766 Swedish crowns) (Reporting by Stockholm Newsroom; Editing by Catherine Evans)