Around 5,800 Swedes have died compared with around 340 people in Finland, which has about half the population of its bigger neighbor, and Lofven's minority government has faced widespread criticism for failing to protect vulnerable citizens.
Lofven said budget, negotiated with two small center-right parties which nominally sit in opposition, would prioritize welfare, fighting climate change, and building up the criminal justice system, amid worries about violent crime.
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"The budget has a clear direction — it will make it possible for everyone in our country to contribute and work Sweden out of this crisis," Lofven said.
In addition to the 9.7 billion crowns for elderly care, local authorities will get an extra 10 billion crowns ($1.14 billion) in grants from the central government, with an additional 5 billion crowns coming in 2022.
(Writers: Simon Johnson, Johan Ahlander | Editor: Catherine Evans)
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