Swedish govt, wooing voters, makes more tax pledges

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Sweden's centre-right coalition government, seeking a new four-year term in an election next month, has pledged tax cuts for pensioners and more health spending.
The centre-right Alliance bloc, led by the Moderate Party of Prime Minister Fredrik Reinfeldt, has taken the lead in recent opinion polls from the centre-left bloc of Social Democrats, the Left Party and the Greens, though the race remains close.
Both sides are busy making election pledges ahead of the September 19 election.
Reinfeldt's bloc came out in a newspaper article with a promise to cut taxes for pensioners by 2.5 bln crowns ($337.7 mln) in 2011, adding to an earlier pledge of 5 bln in tax deductions to compensate for lower benefits in the wake of the global financial crisis.
The four-party coalition also said it would spend an additional 5.8 bln crowns on health and geriatric care over the next four years if re-elected.
The promises have come on the back of Sweden's strong rebound from an economic slump in 2009 and its sound public finances. "We have such a strong economy in this country that we can discuss (budget) reforms," Reinfeldt told reporters.
The government has so far promised 7.4 bln crowns of new spending or tax cuts, including Monday's pledges.
The finance minister said last Friday that there was room for spending or tax cuts worth just over 10 bln crowns in 2011, or 30 to 40 bln during the coming four-year term as he raised growth forecasts for this year and next.
Gross domestic product (GDP) rose 3.7% year-on-year in the second quarter, preliminary data showed in July.
The government last week raised its 2010 GDP forecast to 4.5% growth from a previous outlook of 3.3%.
The latest poll, published on Sunday, suggested the governing coalition would win 51.5% of the vote.