The financial crisis in 2008 had major implications for the global economy as well as for the Swedish economy. With a weakening economy and higher unemployment, municipalities automatically suffer from lower tax revenue.

To avoid cuts during the decline, the Swedish government decided to inject a total of 20 billion kroner (240,000 Euro) in temporary grants to the municipalities.

A new report from Swedish Kulturinstitutet (The National Institute of Economic Research) shows that the temporary grants led to an increase in local government spending in 2010.

The temporary grants are estimated to have saved about 8,500 jobs in the local government sector in 2010.

Read the full report (with English summary)