If the Swedish government cuts its 60% development aid budget what consequences can come in this situation now days The Swedish Finance Ministry is looking into this matter.
The reason behind this decision is due to refugee crisis in the country this money can be spent on asylum seekers who are coming in the country.
Sweden is one of those countries who spend the biggest part of its overall GDP development aid in the world. In 2015 the budget is €4.25 billion, 20% from his year’s budget will be spent on costs for refugees as well as the budget of 2016 is €4.6 billion. . Between 2012-14, 10% of Sweden’s development aid contribution was earmarked for arriving refugees.
In October the Migration Agency predicted the current refugee crisis is likely to cost Sweden €7.4 billion next year, the Scandinavian country’s centre-left government is considering spending a majority of the development aid budget on arriving asylum seekers.
According to an estimate in this year, 190,000 and 2016, 100,000-170,000 asylum seekers can come in Sweden.
In a letter sent from the Swedish Foreign Ministry to the Finance Ministry which was obtained by obtained by Swedish Radio, Foreign Minister Margot Wallström warns that a 60% development aid budget cut will have “a deep impact” and “completely change the Swedes’ self-image.”
He further writes that this step could be cause of serious damage to Sweden’s reputation , and that Sweden would also have to give up its candidacy for a seat in the United Nations Security Council, as the country’s high development aid contribution is seen as its most important trump card.
“Our whole international credibility is at stake,” the letter states.
On Thursday (5 November), Economic and Financial Affairs Commissioner Pierre Moscovici said at a press conference that the executive expects a positive economic impact from the arrival of refugees in Europe, with growth in of 0.2%-0.3% by 2017.