Stockholm - The Swedish government yesterday took advantage of a booming economy and buoyant tax revenues to cut income tax and announce modest increases in spending.
Economists welcomed the measures contained in the budget, saying the country's finances were strong enough to support an expansionary fiscal policy.
But some suggested the government should have been bolder in cutting taxes, even if this resulted in a slightly tighter monetary policy, because Sweden will still have the highest tax ratio in the Organisation for Economic Co-operation and Development area.
