Region Stockholm has a surplus of SEK 5,802 million. This from Region Stockholm’s year-end report for 2020.
The surplus for 2020 amounted to SEK 5,802 million, as compared to the budgeted annual surplus of SEK 311 million. Profits are SEK 4,305 higher than the previous year and can largely be explained by lower pension costs, larger nonrecurring items such as capital gains from property sales and temporary additions to offset the effects of the pandemic.
The Regional Assembly intends to allocate funds in a profit equalisation reserve, RUR, in connection with the approval process for the annual financial statements. The allocation will largely be used as an insurance for the potential scenario of a loss of revenue from public transport, plus additional costs related to postponed healthcare services. The financial risks associated with these factors constitute considerable amounts.
In 2020, the nation and Region Stockholm switched gears in order to deal with a new situation caused by COVID-19. Last year, the Government provided temporary grants due to the ongoing pandemic, general government subsidies to balance out the reduced tax revenues and targeted government subsidies to compensate for additional costs and partly for reduced ticket revenue.
- “Region Stockholm once again reporting a strong financial result that is to be viewed as something positive, especially considering the large investments being made into the health and medical sector, as well as public transport. The long-term financial commitments remain, as the number of senior citizens, children, and young people in relation to the number of people with gainful employment is growing. In other words, a smaller group is to provide for a larger group. It will be a challenge for all operations that had to be postponed during the pandemic to recover any time soon. Additionally, the pandemic also brings uncertainties with regards to the short-term economic development. The expenses for cost equalisation increased, and the general government subsidies in the coming years may also decrease,” says Regional Director Carina Lundberg Uudelepp.
- “The action programmes paused as a result of the pandemic need to be resumed as soon as possible. It is always important that operational organisations keep to their budget and work with both development and efficiency in different ways. Therefore, this year’s results signify no changes regarding these vital efforts in the coming years,” says Carina Lundberg Uudelepp.
Performance equalisation reserve (RUR)
The Swedish Local Government Act regulates how parts of a positive result can be reserved in a performance equalisation reserve, RUR. The aim of RUR is to allow municipalities and regions to reserve funds to, under certain conditions, cover deficits at a later date. For the coming years, this will serve as an important assurance that challenges can be met.
The investment volume amounted to SEK 10,916 million, which is SEK 4,018 million lower than the budget. The deviation is due to projects that have been postponed to later years. Region Stockholm is making major investments in health and medical services by building, renovating, and developing methods to strengthen the healthcare sector in order to offer a more accessible and more effective health and medical service, where more patient receive the right care, at the right time, by the right institution and at the right cost. Large investments are also made within public transport in the expansion of the metro and light rail systems, as well as renovation of Roslagsbanan and the Metro Red Line to ensure functional and accessible public transport in a growing Stockholm region. For the past year, measures related to the culture sector, business activity, and labour market issues have also been employed, and half of the country’s research projects on COVID-19 are conducted in Region Stockholm.