A Global Revenue Collapse
A couple of months ago I quoted a local politician in Sweden recounting how government revenue projections are repeatedly revised downwards because of the terrible toll the recession in the United States is taking on the global economy’s export-driven participants. The local newspaper in my native city reports this weekend on another town that’s facing rapidly growing budget deficits because of collapsing revenue:
In the beginning of the year politicians in Gnesta [the G is not silent] thought it would suffice with a couple of million [SEK] in spending reductions. But the deficit has deepened along with the recession.
- In April we said four million and one can save that by asking all the departments to keep their belts tight. But then came another cold-shower [projecting even lower revenue] and now we have be specific and tell each department how much they need to cut back, says town alderman Henric Soderlund.
And he fears it will get even worse.
- New projections will be announced at the end of June and they aren’t likely to be any more fun, he says.
The department that gets hit the hardest in Gnesta is Human Services according to the newspaper article, which is fairly normal since that’s one of the real big-ticket items in municipalities in Sweden.
(My translation and editing)
