Government announces travel support cuts aiming for two million kronor savings in Sweden

The government has announced plans to save two million kronor annually by reducing support for travel expenses.

Currently, individuals can apply for travel support twice a year, but this will change to once a year. Furthermore, the minimum eligible distance will be increased from 20 kilometers to 30 kilometers. There are also proposals to eliminate funding for helicopter flights.

The current support rate is one krona per kilometer traveled. For those who use the Vágatunnel and Norðoyatunnel, the support amount will decrease by one krona for each direction.

In addition, there has been discussion about reducing the interest subsidy, but no proposals have yet reached parliament. According to the fiscal budget, the government expects to use 73.5 million kronor in net interest subsidies next year, as interest rates are predicted to decrease. This year, the estimated net interest subsidy stands at 85 million kronor.

Since 2014, the interest subsidy has remained at 35 percent, with the government covering 19.5 percent and municipalities contributing 15.5 percent. Since 2018, financial support for interest has been available, with a maximum limit of 100,000 kronor.