Excessive Deficit Procedure 2025
Public finances had a deficit of SEK 85 billion
Statistical news from Statistics Sweden 2026-03-31 8.00
In year 2025, public finances net lending/net borrowing amounted to a deficit of SEK 85 billion, which corresponds to 1.3 percent of GDP. Compared to the previous year, public finances improved by about SEK 13 billion. The consolidated gross debt amounted to SEK 2 305 billion, which corresponded to 35.1 percent of GDP. Thus, Sweden meets the EU convergence requirements.
During the years 2023 to 2025 central and local government reported deficit, while the social security funds reported surplus. The central government showed a deteriorated net lending/net borrowing between year 2024 and 2025. During the same period, local government reported an improved net lending/net borrowing.
Increase in public finances gross debt
The consolidated gross debt increased by SEK 124 billion from year 2024 to 2025. During the same period, GDP at current prices increased by SEK 178 billion, resulting in an increase of the consolidated gross debt from 34.1 percent to 35.1 percent of GDP. This figure is well below the EU convergence requirement of 60 percent of GDP.
Additionally, the central government’s consolidated gross debt increased by SEK 105 billion in 2025, totaling SEK 1,388 billion at the end of the year.
Revisions
Compared to the previous dissemination of Excessive Deficit Procedure, 21 October 2025, several revisions have been made for the year 2024, with two of them being more notable. The first revision relates to a change in the methodology for military expenditure and is due to updates and methodological changes in external data sources used in the underlying data provided to SCB, which are now better harmonised with the National Accounts framework. This change had a positive impact on net lending/net borrowing and contributes with SEK 9,5 billion. While the second revision pertains to central government tax revenue, that has been revised down by SEK 10,9 billion. The combined effect on central government net lending/net borrowing is modest as the two revisions partly offset one another.
The gross debt for the years 2022 and onwards have been revised mainly due to regular data updates. The main revision relates to local government, due to ongoing adjustments in line with recommendations from the municipal financial reporting board, whereby certain items have been reclassified from operating leasing to financial leasing.
The EU convergence requirement remains fulfilled after the revisions.
The figures reported, will be audited by Eurostat and may be revised during this process. In this event, revised estimates will be published on April 22 by both Statistics Sweden and Eurostat.
Government net lending and borrowing and gross debt according to the EU convergence criteria
| SEK billions | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| GDP | 5816.4 | 6143.2 | 6391.6 | 6 570.0 |
| Net lending/borrowing | 57.6 | -54.9 | -97.4 | -84.7 |
| Percentage of GDP (%) | 1.0 | -0.9 | -1.5 | -1.3 |
| Gross debt | 2 001.2 | 1 980.8 | 2 181.7 | 2 305.3 |
| Percentage of GDP (%) | 34.4 | 32.2 | 34.1 | 35.1 |
Definitions and explanations
According to the EU convergence requirements, the government deficit cannot be higher than 3 percent of GDP and gross debt is not allowed to be more than 60 percent of GDP.
Calculations of convergence requirements are somewhat different from the ordinary compilations in the financial accounts. For example, the gross debt is calculated at nominal value which is the amount that must be paid on maturity. In the financial accounts, gross debt is calculated at market value. Also, the gross debt comprises only certain financial instruments.