Net operational expenditures for the local government sector (regions and municipalities combined) increased in 2023 by 10 percent, to SEK 1,099.1 billion. High inflation and rising pension costs may be contributing factors.

Tax revenues totalled SEK 902.2 billion, an increase of 6 percent compared to last year. Tax revenues helped to mitigate the negative effects of cost increases, while central government grants and equalisation payments had a lesser effect. These increased only marginally, by 1 percent, to SEK 212.9 billion.

Net operational income amounted to SEK 16 billion, a decrease of 74 percent compared to the previous year. For the regions, net operational income decreased by SEK 28.2 billion, and went from a surplus in 2022 to a deficit in 2023.

Increasing interest rates increased financial revenues as well as expenditures in 2023, strengthening the net financial income of the local government sector. The regions' net financial income went from -14.6 billion in 2022 to -7.5 billion in 2023. That of municipalities went from SEK -2.9 to +4.8 billion during the same period.

Municipalities 

The net operational income of municipalities amounted to SEK 20.3 billion in 2023. This represents a reduction of SEK 16.6 billion, or 45 percent, compared to 2022. Net operational expenditures increased by a total of SEK 49.2 billion, significantly more than the increases in tax revenues, central government grants and equalisation. These revenues together increased by SEK 32.6 billion in 2023, of which tax revenues accounted for SEK 31 billion.

The net financial income of municipalities improved by SEK 7.7 billion compared to 2022, helping to ensure that the net income, which decreased to a lesser extent than the net operational income, was positive. Net income amounted to SEK 26 billion in 2023, a decrease of SEK 7.9 billion.

Eighty-one of Sweden’s 290 municipalities reported a net operating loss in 2023. This was significantly more than in 2022, when only 13 municipalities reported a net operating loss. This confirms that, in 2023, finances were strained in numerous municipalities across Sweden.

As of 1 March, data for one municipality, Älvsbyn, was missing. However, data in the above table have been adjusted for non-response, and the table includes all 290 municipalities.

Regions

Year 2023 was difficult for Sweden's regions. Operational revenue decreased by 3 percent, to SEK 90.1 billion, while operational expenditures increased by 10 percent, to SEK 483.8 billion. As a result, net operational expenditures increased by 13 percent, to a total of SEK 408.7 billion. A 6 percent increase in tax revenues, to SEK 325.4 billion, partly mitigated the negative effects of increasing expenditures. However, central government grants and equalisation payments increased only marginally, to SEK 79 billion, which in 2023 did not suffice to compensate for increased expenditures.

Regions experienced a net operational loss amounting to SEK -4.3 billion in 2023, a decrease of SEK 28.2 billion compared to the previous year. This is the first time since 2003 that regions reported a total net operational loss. In 2023, 15 out of 21 regions reported a net operational loss.

Although financial revenues quadrupled to SEK 11.6 billion, the net financial income was weakened, as financial expenditures increased to a total of SEK 19.1 billion. This resulted in a net loss for the year that totalled SEK -11.8 billion for the regions. In total, 17 regions reported a net loss in 2023.

General footnote: Individual totals and sub-items in the tables presented may show differences due to rounding.