At a glance
- Sweden is the largest donor in proportion to the size of its economy: In 2017, the country spent 1.02% of its gross national income (GNI) on net official development assistance (ODA). In absolute terms, Sweden is the seventh largest donor country, with net ODA at US$5.6 billion in 2017.
- Sweden has exceeded the United Nations’ (UN) 0.7% ODA-to-GNI target since 1975 and has maintained a long-term commitment to spend 1% of its GNI on ODA since 2008. Due to continuing economic growth, funding is set to further increase.
- According to the government’s budget, ODA levels are currently planned to reach SEK50.7 billion (US$5.9 billion) in 2019. However, this number may slightly change with the approval of the Spring Budget Bill in April.
- Sweden’s 2016 ‘Aid Policy Framework’ is strongly aligned with the Sustainable Development Goals (SDGs) and outlines eight focus areas: 1) human rights, democracy, and the rule of law; 2) gender equality; 3) the environment and climate change; 4) peace and security; 5) inclusive economic development; 6) migration and development; 7) health equity; and 8) education and research.
- Gender equality and women’s empowerment are a top focus of Swedish foreign and development policy. Sweden was the first country to implement a Feminist Foreign Policy, starting in 2014. It features sexual and reproductive health and rights as one of six objectives, and prioritizes women and girls’ participation in preventing and resolving conflicts.
- Sustainable use of natural resources, marine resources, environment, and climate change is another top priority. It features as a priority sector in many new country strategies and is reflected in multilateral engagement. Sweden is the highest per-capita contributor to the Green Climate Fund and to the Global Environment Facility.
- Following general elections in September 2018, lengthy negotiations led to the formation of a minority government in January 2019, a coalition of the Social Democrats and the Green party, with the support of the Center and Liberal parties in Parliament. Stefan Löfven (Prime Minister) and Margot Wallström (Minister of Foreign Affairs), who remained in their positions, will largely continue steering policy with the same priorities: climate change and gender equality will remain at the heart of Sweden’s foreign and development policy.
- As a minority government, the government is under great pressure from the Center and Liberal parties, whose support it relies on. Democratic governance and human rights in development cooperation is a central issue for these two parties, placing them high on the agenda and potentially leading to increased funding for these areas.
- The 2019 budget approved by Parliament in December 2018 had been put forward by the conservative Moderate Party (M) and Christian Democrats (KD), two parties which are now in the opposition. Amendments to the budget in mid-April (spring fiscal policy bill) relating to ODA are likely to be significant, better reflecting priorities of the current government and of the Center and Liberal parties supporting it.
- How much ODA does Sweden provide?
Sweden is the 7th largest donor in absolute terms and 1st in proportion to the size of its economy
Sweden is the largest donor among members of the OECD Development Assistance Committee (DAC) in proportion to the size of its economy: net ODA stood at 1.02% of its GNI in 2017. This corresponds to US$5.6 billion, seventh among DAC members. Sweden is committed to spend at least 1% of its GNI on ODA and has exceeded the UN’s 0.7% target since 1975. Looking forward, the ODA budget is set to keep increasing due to Sweden’s growing economy and its 1% ODA/GNI commitment.
Between 2016 and 2017, net ODA went up by 11%, driven by higher level of grants to Africa and to least-developed countries (LDC), as well as increased contributions to international organizations. A peak in funding in 2015 (see chart) was due to extraordinarily high costs of hosting refugees in Sweden (US$2.5 billion) and advanced payments to UN organizations and the Green Climate Fund, which also explain the notable decrease in 2016.
Between 2014 and 2017, costs of hosting refugees in Sweden accounted for a large share of the country’s reported ODA. They peaked at US$2.5 billion in 2015 (34%), before falling back to US$842 million and US$828 million in 2016 and 2017 respectively (17% and 15%). To cover the costs of hosting refugees in the country, Sweden partly uses funds that fall under its 1% commitment for development funding. According to the government’s 2019 budget, they are set at SEK2.2 billion (US$258 million, or 4% of total ODA), and are likely to remain very low in coming years.
Following the general elections in September 2018, negotiations to form a government succeeded in January 2019. The Social Democrats continue to lead a minority coalition with the Green Party, and are now supported by the Center and the Liberal Parties. Flagship issues of the previous government, including the feminist foreign policy and the fight against climate change, will continue to be prioritized.
The 2019 budget sets ODA at an all-time high: SEK50.7 billion, or US$5.9 billion. The 2019 budget currently in place, approved by Parliament in December 2018 (at a time where negotiations to form a government were still ongoing), was put forward by the Moderate and Conservative parties together, which are now in the opposition. The government may use the Spring Budget Bill, in April to make changes to the budget, including on ODA.
- What are Sweden's strategic priorities for development?
Focus on democratic governance, gender equality, SRHR, climate, and environmental resources
The Agenda 2030 and the Sustainable Development Goals (SDGs) are central in Sweden’s policies, and the government seeks to be a leader in implementing them both nationally and internationally. The Agenda 2030 framework is referred to in national sector policies, and there is increased ambition to report which SDGs the policies and strategies adhere to and how. In line with this overarching framework, the Swedish development policy strongly aligns with the SDGs. This strong commitment to sustainable development is well regarded: Sweden ranks first in the Center for Global Development’s 2018 ‘Commitment to Development Index’, which ranks 27 wealthy countries based on their policies on ODA, finance, technology, environment, trade, security, and migration.
The SDGs are central in all of Sweden's policies, particularly for its development cooperation
The government’s 2016 ‘Aid Policy Framework’ outlines the overall objectives of Swedish development cooperation and sets eight focus areas: 1) human rights, democracy, and the rule of law; 2) gender equality; 3) the environment and climate change, and the sustainable use of natural resources; 4) peace and security; 5) inclusive economic development; 6) migration and development; 7) health equity; and 8) education and research. The current government, sworn in in January 2019, will continue to focus on the previous government’s flagship issues: women’s empowerment/sexual and reproductive health and rights (SRHR) within the framework of its feminist foreign policy, human rights, and climate change (see box). An added thrust will be put on democratic governance.
Sweden’s key development priorities:
- Climate change: Sweden is the largest per capita donor to GCF and GEF; strong focus on marine resources for bilateral ODA.
- Gender equality and women’s empowerment: Sweden’s feminist foreign policy governs overarching orientation of foreign policy; SRHR is one of six objectives.
- Democratic governance, human rights, rule of law and freedom of speech: New investments in these areas will be directed to eastern Europe and EU neighboring areas.
In 2014, Sweden was the first country in the world to launch and implement a feminist foreign policy and takes strong international leadership on gender equality. In August 2018, Sweden also published a feminist foreign policy handbook to provide a resource for international work related to gender equality. Sweden’s foreign policy aims to enhance both gender equality and the full enjoyment of human rights by all women and girls, with SRHR as one of the six sub-objectives of the policy. Sweden aims to mainstream gender equality in all programs for development. In May 2018, Sweden published its first strategy for gender equality and women’s empowerment. It focuses on the full enjoyment of human rights by all women and girls, including through work on normative frameworks, discrimination, gender-based violence, safety and security for actors and organizations that promote gender equality, and increased access and use of sex-disaggregated data and research. It is backed by a funding envelope of SEK1 billion (US$117 million) between 2018 and 2022 through Sida, Sweden’s implementing agency for global development. So far, Sida’s work on gender equality focused on five aspects: 1) women’s political participation and influence, 2) women’s economic empowerment and working conditions, 3) SRHR, 4) girls’ and women’s education, and 5) women’s security, incl. combating all forms of gender-based violence.
Sweden implements a ‘feminist foreign policy’, of which SRHR is one of six objectives
Limiting climate impact, environmental resilience, and disaster-risk reduction is a top focus, with a special emphasis on marine resources. In its ‘Strategy for development cooperation in sustainable environment, climate and marine resources, and sustainable use of natural resources’ for 2018 to 2022, the government set aside SEK6.5 billion (US$761 million) to promote progress in these areas. This focus is also demonstrated at the international level: Sweden is the largest per-capita donor to both the Green Environment Facility (GEF) and the Green Climate Fund (GCF). Sweden has committed SEK4 billion (US$468 million) to GEF for 2016 to 2018 and SEK4.9 billion (US$581 million) to GCF for the 2015 to 2018 period.
Human rights, democracy, and the rule of law is an area of work that is likely to gain importance under the new government. It is a particularly important issue for the Center and the Liberal parties, which are not in the government but whose support the minority government depends on to pursue its policies. Within this area, Sweden defined three objectives in its 2018-2022 ‘strategy for development cooperation in the areas of human rights, democracy and the rule of law’: 1) inclusive democratic societies, 2) equal rights for all; and 3) security, justice, and accountability. Women and girls’ enjoyment of human rights is central to the strategy. Freedom of speech and media will also be more prominent areas for cooperation. New investments in this area will be directed towards Eastern Europe and EU neighboring areas.
Conflict prevention is also key to Sweden’s ODA, with a focus on women, peace, and security, including training and integration of women in peace-negotiation processes. In addition, Sweden has a national action plan for the implementation of the UN Security Council Resolution 1325, which calls for increased participation of women in peace and security efforts within the UN. Women’s empowerment, conflict-sensitivity, and resilience are systematically integrated into humanitarian- assistance programs.
- How does Sweden spend its ODA?
Sweden provides strong support to multilateral organizations
Sweden is a strong supporter of the multilateral system. Core contributions to multilateral organizations account for slightly less than a third of Swedish ODA (31% in 2017). This is below the average of 40% among member of the OECD Development Assistance Committee (DAC); however, when adding contributions passing through multilaterals but earmarked for specific themes or funds, the share of Sweden’s ODA going to or through multilateral organizations rises to 51% (DAC average: 53%; see below for more information on Sweden’s engagement with multilaterals).
In past years (including 2017), the proportion of bilateral ODA (49%, discounting earmarked funding) has been inflated by high costs of hosting refugees in Sweden, which are reported as bilateral ODA (see below). When discounting these costs, Sweden channels an even larger share (60%) of its ODA through multilateral organizations.
Sweden channels about a fifth of its bilateral ODA through civil society organizations (CSOs; 28%), which is more than the average among members of the OECD DAC (17%). The government recognizes CSOs’ key role in reducing poverty, strengthening democratic development, and supporting human rights, especially in countries that are not governed by democratic principles.
Refugees costs have gone down; democratic governance and human rights are funding priorities; humanitarian assistance is on the rise
Costs for hosting refugees have greatly distorted Swedish ODA statistics over the past years. In 2015, Sweden received a particularly high number of asylum seekers, especially considering the size of its population. Consequently, costs from hosting refugees have gone up significantly since 2014: they more than doubled between 2014 and 2015, from US$933 million to US$2.5 billion. They decreased again in 2016 and 2017, from US$842 million to US$828 million. In 2017, this still corresponded to more than a fifth of bilateral ODA (21% or US$828 million), according to OECD data, making it the largest spending area of Sweden’s ODA. According to budget documents, these costs further declined in 2018 and 2019 (US$258 million in 2019, or 4% of total ODA), their lowest level in 10 years, and are expected to remain low in coming years.
The second-largest share of bilateral ODA is allocated to the ‘government and civil society’ sector (19% of bilateral ODA, or US$741 million in 2017, up from US$649 million in 2015). This is in line with Sweden’s focus on democratic governance and human rights, and may increase further due to the new government’s stronger focus on the topic. Around two-thirds of the funding in this area goes to projects supporting democratic participation or human rights. In this sector, Sweden relies on its civil society organizations (CSOs), as well as international organizations and local CSOs in partner countries, for the implementation of its bilateral cooperation.
Sweden's bilateral funding is strongly aligned with its policy priorities
The third-largest share of Swedish bilateral ODA goes to humanitarian assistance, a traditional focus of funding (12% of bilateral ODA, US$473 million). Funding to the sector grew by 23% between 2015 and 2016, and remained high in 2017. Sweden has been strengthening its focus on conflict-affected areas, and it will likely continue to do so.
Global health is the fourth-largest sector of Sweden’s bilateral ODA, accounting for 6% of bilateral funding in 2017 (US$248 million).
According to the OECD, virtually all of Sweden’s ODA consists of grants (99% in 2016). The remaining 1% (US$47 million) consists of equity investments by the MFA.
Sweden’s funding target low-income countries, and countries in sub-Saharan Africa
Sweden’s ODA targets primarily partner countries in sub-Saharan Africa and low-income countries. The 2016 Aid policy framework states that its bilateral funding must be focused on the least-developed and most-vulnerable countries. This policy is backed by funding data: more than two-thirds (68%) of Sweden’s bilateral ODA is allocated to low-income countries (when excluding unallocated funding) between 2015 and 2017. Yet, the government also recognizes that an increasing proportion of global poverty is found in middle-income countries. Overarchingly, the government is likely to continue to strengthen its focus on fragile states.
The Swedish development agency, Sida, has cut the number of bilateral partner countries in half over the past ten years, from 67 in 2007 to 36 in 2018. This further strengthened the focus on sub-Saharan Africa, as 15 of the partner countries are in this region (see box).
Sida’s partner countries for bilateral cooperation
Africa: Burkina Faso, the DRC, Ethiopia, Kenya, Liberia, Mali, Mozambique, Rwanda, Somalia, South Sudan, Sudan, Tanzania, Uganda, Zambia, Zimbabwe
Asia: Afghanistan, Bangladesh, Cambodia, Iraq, Myanmar, Palestine, Syria
Europe: Albania, Belarus, Bosnia-Herzegovina, Georgia, Kosovo, Moldova, Russia, Serbia, Turkey, Ukraine
Latin America: Bolivia, Colombia, Cuba, Guatemala
The high costs of hosting refugees in Sweden, as well as earmarked funding to multilaterals and funding to CSOs, are counted as bilateral ODA but cannot be allocated to specific countries and regions; this distorts OECD data about recipients of Swedish ODA (see figure below). When excluding these unallocated funds (57%), sub-Saharan Africa accounted for half of Sweden’s bilateral ODA between 2015 and 2017 (51%). The MENA region is a growing focus of bilateral cooperation, increasing from 10% in 2012 to 15% of bilateral ODA in 2017, when it reached US$296 million.
For a deeper understanding of funding at the recipient level, please consult data from the International Aid Transparency Initiative (IATI). IATI is a reporting standard and platform on which organizations and governments voluntarily publish data on their development cooperation, including more recent activity than is available through OECD data.
Data can be searched by recipient country, the ‘publisher’ (including funders that do not report to the OECD), and other filters. Click here for more information on IATI’s data. Click here to go directly to IATI’s ‘d-portal’, a user-friendly interface for data searches.
Sweden is a strong supporter of the UN system
Sweden financially supports multilateral organizations both through core contributions (31% of total ODA in 2017, or US$1.7 billion) and through earmarked funding (20%; US$1.1 billion). Funding to multilateral organizations is disbursed in line with the January 2018 ‘Strategy for multilateral development policy’, which defines the orientation of Sweden’s multilateral engagement and provides guidelines to the three main stakeholders for this area (the Ministry of Foreign Affairs (MFA), Sida, and Swedish embassies).
The un-earmarked character of financing is one of three core principles outlined in this strategy, for which Sweden strongly advocates at an international level. Large shares of what is reported as earmarked funding under OECD data is made up of funding to thematically focused organizations and funds, but not necessarily earmarked for a specific purpose within these funds. For example, the two largest projects reported under this in 2017 were a US$34 million contributions to the EU Facility for Refugees in Turkey and a US$31 million contribution to the Global Partnership for Education (GPE). The second and third principles highlight the need for a long-term perspective in engagement with a multilateral and the need to foster coordination across the multilateral system.
Sweden is a strong advocate for unearmarked funding to multilateral organizations
Within its multilateral engagement, Sweden is a strong supporter of the UN: UN agencies represent a third of the country’s core contributions to multilaterals (39% in 2017). Sweden further demonstrated support through its role as a non-permanent member of the UN Security Council for 2017 to 2018. Sweden supports UN reform efforts and pushes its ‘women, peace and security’ agenda through these efforts. Its priorities in the UN include conflict prevention, peace building, gender equality, global development, climate, and human rights.
EU institutions and the World Bank are other key recipients of Sweden’s core contributions to multilaterals, receiving 23% and 20% of it in 2017 respectively.
- Who are the main actors in Sweden's development cooperation?
MFA decides on strategy; Sida executes
The current Swedish government, led by Prime Minister (PM) Stefan Löfvén (Social Democrats; S) is composed of the Social Democrats and the Green Party (MP). It was sworn in January 2019, after lengthy negotiations following inconclusive results of the September 2018 elections. PM Löfvén, on his second term in office, leads a minority government with the parliamentary backing of the Center and the Liberal parties, former members of the center-right opposition ‘Alliance’. As a minority coalition, the government is under great pressure from the opposition – particularly during budget negotiations.
SWEDEN'S DEVELOPMENT COOPERATION SYSTEM
The Ministry of Foreign Affairs (MFA) oversees development policy and financing and decides on core funding to multilateral organizations. Margot Wallström (S) leads this ministry since 2014 and was reappointed for a second term in January 2019. She previously worked as a member of the European Commission (1999-2009) and as the first-ever UN Special Representative of the Secretary-General on Sexual Violence in Conflict (2010-2012).
Within the MFA, Peter Ericsson (MP) has served as Minister for International Development Cooperation and Climate since January 2019. He follows Isabella Lövin (now Minister of Environment), under whose leadership environmental issues where a top focus. This is likely to continue under Ericsson’s leadership, and democratic governance is likely to play an increasing role, partly as a result of strong interest from the Center and Liberal parties.
Key development-related units within the MFA include the ‘Department for International Development Cooperation’, responsible for overall governance and evaluation of development cooperation and for the coordination drafting the ODA budget. It also coordinates planning on thematic focuses and strategy for the Swedish development agency, Sida.
Other relevant departments are the ‘UN Policy Department’, responsible for support through UN organizations and thematic funds, and the ‘Global Agenda Department’, which coordinates the 2030 Agenda for Sustainable Development. The Global Agenda Department also coordinates and develops the feminist foreign policy, including gender-equality issues in development cooperation.
The MFA oversees development policy and financing
Sida manages and executes development policy implementation in cooperation with civil society organizations (CSOs), embassies, and other government agencies. Based on strategic guidelines set by the MFA, Sida and Swedish embassies develop strategies for countries, regions, and thematic areas. These are then further refined by the MFA and approved by the government. Country strategies outline key sectors and provide indicative budgets for the timeframe (usually three to seven years). Outdated strategies are usually extended at the end of every year if no new strategy has been formulated.
In 2019, Sida manages over half of Sweden’s ODA budget (SEK26.1 billion, or US$3 billion), in accordance with the strategies developed by Sida and the MFA for each thematic or geographic area. Sida is managed by a governing board, appointed by the Swedish government. Besides its Director-General (Carin Jämtin since June 2017), who is responsible for Sida’s operational activities, the board includes members of public administrations, of the private sector, and of the academia. Sida has 782 employees, many of whom work at Swedish embassies, and 65% of whom are women.
Sweden’s development finance institution, Swedfund, is a state-owned investment fund that supports private-sector activities aimed at promoting sustainable economic development in sectors such as energy, infrastructure, and industry. It is supervised by the Ministry for Enterprise and Innovation and provides risk capital and investment for projects that alleviate poverty in low-income countries.
CSOs play a major role in Sweden’s development assistance. In 2017, a fifth of the country’s bilateral ODA was channeled through them (28%), well above the average of 17% among members of the OECD’s Development Assistance Committee (DAC). Sida has increased its engagement with Swedish CSOs as a way to identify new methods to deliver its bilateral programs and increase aid effectiveness. For example, Sida channels finance to organizations through ‘challenge funds’, which are focused on a desired development outcome.
- How is Sweden's ODA budget structured?
Sida manages just over half of Sweden’s ODA budget
The government is committed to allocating 1% of Sweden’s GNI to ODA. This share is outlined in each year’s budget, and the total of all funding sources contributing to it is referred to as the ‘ODA frame’. The 2019 budget sets the ODA frame at SEK50.7 billion, or US$5.9 billion in 2017 prices. This represents 1.0% of GNI.
General elections in September 2018 were followed by lengthy negotiations to form a government, which took power in January 2019. The budget for 2019, approved by Parliament in December 2018 under a caretaker government, reflected the proposal put forward by the conservative Moderates and Christian Democrats. It includes overall ODA levels, as well as high-level numbers on in-country refugee costs and administrative costs. More details on allocations to specific bilateral and thematic budget lines can be found in Sida’s appropriation letter.
The ‘Budget Area 7: International assistance’ covers 89% of the ‘ODA Frame’ (SEK44.9 billion, or US$5.3 billion). The remainder consists mainly of spending to cover the costs of hosting refugees in Sweden (US$258 million, or 4% of the ODA frame), assessed contributions to the EU (US$275 million, or 5%), and management costs of the Ministry of Foreign Affairs (MFA; US$50 million, or 1%).
Sida manages both geographic and thematic cooperation budgets
Budget area 7 includes all funding managed by Sida (the Swedish International Development Agency), which manages about 51% of Sweden’s total ODA financing, corresponding to SEK26.1 billion in 2019 (US$3 billion, including its administrative costs). In 2019, this funding was divided between seven areas: 1) bilateral cooperation; 2) thematic cooperation; 3) humanitarian assistance; 4) funding for Swedish CSOs; 5) research cooperation; 6) capacity development and agenda 2030: and 7) information and communication.
‘Bilateral cooperation’ programs are guided by regional and country strategies, which define indicative budget allocations and focuses to specific geographies. These strategies are developed by the Ministry of Foreign Affairs (MFA), Sida, and the various embassies, and approved by the government.
The ‘thematic cooperation’ program entails three main envelopes: 1) human rights, democracy, and the rule of law; 2) sustainable development; and 3) sustainable peace. As for country-based bilateral cooperation, each of these areas is governed by a strategy that defines spending ceilings and main funding areas.
In addition, Budget Area 7 includes the MFA’s funding lines for core contributions to UN agencies and other multilateral funds, as well as for multilateral development banks, debt relief, and ‘strategically oriented grants’ (see table for a detailed breakdown).
Sweden's 2019 ODA budget
Total Budget Area 7 (international assistance) 44,945 5,259 Sida 24,800 2,902 Bilateral cooperation 12,340 1,444 Thematic cooperation 4,845 567 Humanitarian assistance 4,050 474 Funding for Swedish CSOs 1,825 214 Research cooperation 920 108 Capacity development and agenda 203 670 78 Information and communication 150 18 MFA 16,156 1,890 Multilateral organizations (UN agencies) and funds 11,350 1,328 Multilateral development banks; debt relief 3,900 456 Strategically oriented grants 906 106 Other agencies 2,503 293 Administrative costs (including Sida's) 1,486 174 Other ODA 5,772 675 Costs of hosting refugees 2,204 258 EU contributions 2,354 275 MFA administrative costs 424 50 Other (e.g., funding for some UN agencies) 790 92 Total ODA ('ODA frame') 50,717 5,934
- What are important milestones in the annual budget process?
The government allocates funding to specific areas from June - August
The Swedish budget process runs over a two-year period. It starts in the year that precedes its implementation and continues during the current fiscal year; the ongoing budget can be amended in spring and autumn. In 2019, the Spring Budget Bill might significantly change the ODA budget. This is because a new government has been sworn in since the approval of the 2019 budget by Parliament. The budget approved by Parliament in December 2018 had originally been put forward by the conservative Moderates and Christian Democrats.
- Sida develops its draft budget: By March 1st of the year before, Sida submits its draft to the MFA. Sida’s full budget is organized by strategies consisting of regions, countries, and broad thematic priorities (such as ‘sustainable social development’). Sida’s leadership and regional departments are the main decision-makers regarding budget requests.
- Ministry of Finance develops the ‘Spring Budget Bill’: From March to April, on the basis of each ministry’s expenditure estimates, the Ministry of Finance develops the Spring Fiscal Policy Bill (the budget bill). It includes ministerial expenditure ceilings for the next three years.
- Government presents the Spring fiscal policy bill to Parliament: In mid-April, the government submits the budget bill to Parliament. A first decision on the overall ODA volume is made. Once determined, major changes to the ODA volume are rare; the ODA budget is tied to the GNI level. This is followed by a debate in Parliament, which approves the budget bill in June.
- Minister for Development decides on specific budget lines: In July and August, the MFA’s Minister for International Development Cooperation and Climate allocates further funding to expenditure areas within the main ODA budget. Broad budget lines (e.g., Sida’s own budget) and allocations to specific budget items (e.g., Sida’s thematic budget line on ‘sustainable social development’) are decided at this time.
- Government presents its budget bill to Parliament: The government presents its budget bill to Parliament in mid-September (at the latest on the 20th), except during election years when this may be postponed until November 15th.
- Parliament debates and amends budget bill: Debates take place from early October to early December. The Committee on Finance discusses the government’s draft expenditure ceilings for all budget areas; the Committee on Foreign Affairs may propose amendments to specific allocations within the ODA Budget Area 7. Usually under a minority government such as the current one the government has to negotiate closely with the opposition on the budget.
- Parliament votes on the budget bill: In mid-December, the Parliament makes the final decision on the budget bill. The government then sends its annual letter of appropriation to Sida, which specifies overall funding to Sida and the allocation of funds by regions or thematic issues.
The Spring Budget Bill may also be used to divert or reallocate funds originally allotted for the current year. It is likely to be the case in 2019, as the new government was sworn in after the budget was approved by Parliament. The ongoing budget can also be amended in September, when the government presents its budget bill to Parliament for the next year.