2004 OECD Economic Surveys: Sweden 2004

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This 2004 edition of OECD's periodic review of Sweden's economy includes special features on living standards and the welfare state; competition and economic performance, harnessing resources more effectively, public finances, and sustainable development.

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More Sustainable Public Finances

The demographic changes facing Sweden are likely to lead to significant pressure on public finances, stemming from increased spending on pensions, health and elderly care and slower increases in tax bases. As pointed out in Chapter 1, it is crucial to prepare for these pressures by reducing public debt in the current period of favourable demographics, which should last for about 15 years, if public service standards are to be maintained without leading to higher tax rates or an unsustainable debt position in the longer term. Achieving this reduction will require solid general government budget surpluses in the foreseeable future...

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