Supplementary Budget for Growth and Fiscal Responsibility 2020

Rationale

This supplementary budget is designed to strengthen Sveria's economy while taking responsible steps to reduce the budget deficit. It combines fiscal discipline with targeted investments that will support long-term growth, improve national competitiveness and prepare the country for future challenges. The budget reduces the annual deficit by increasing tax revenues through moderate adjustments to income taxation while keeping the overall tax system competitive. At the same time, spending is carefully reprioritised rather than broadly expanded. Investment is directed towards infrastructure and transport to improve connectivity, support housing development and strengthen economic activity across the country. Additional funding for business support will encourage innovation, entrepreneurship and private investment, while increased resources for justice, policing and defence reinforce public safety and national security. The budget also includes a targeted increase for arts, culture and media as part of a broader strategy to strengthen Sveria's tourism sector, enhance the country's international attractiveness and support local economic development. A moderate increase in foreign aid reflects Sveria's commitment to responsible international engagement while remaining well below the spending levels of comparable countries. Savings are achieved through measured reductions in selected expenditure areas where spending remains broadly in line with, or above, international benchmarks. These adjustments allow resources to be redirected towards investments that generate stronger long-term economic returns without undermining the core functions of the welfare state. This budget reflects Modern Alliance's belief that strong public finances and economic growth go hand in hand. By reducing the deficit while investing in the foundations of future prosperity, Sveria will be better positioned to create jobs, attract investment and build a stronger, more resilient economy. Prepared by the Government of Sveria.