Sweden Slashes Development Aid Budget While Boosting Record Support to Ukraine

The Swedish government has announced major cuts to its international development aid, reducing the allocation for the Swedish International Development Cooperation Agency (Sida) by more than four billion kronor next year. The decision marks a significant shift in Sweden’s aid policy, even as the government simultaneously unveils record financial support for Ukraine.
Minister for Development Cooperation and Foreign Trade Benjamin Dousa said the reduction—amounting to nearly 18 percent of Sida’s budget—was not taken lightly. He acknowledged that many ongoing projects and initiatives around the world will be affected, with several programs likely to be discontinued as a direct result of the cuts. Aid to Africa and Asia will see some of the largest reductions, totaling approximately 2.3 billion kronor combined.
As part of the restructuring, long-term development funding is being deprioritized in favor of humanitarian and emergency assistance. Core support for the UN Development Programme will be sharply reduced, while funding for life-saving efforts such as refugee protection and food aid will be maintained. The government argues that shortages of food, shelter, and clean water often drive large-scale displacement and must remain a priority.
At the same time, Sweden is increasing its financial commitment to Ukraine, announcing an additional two billion kronor in budget support—the largest single contribution Sweden has ever made to one country. According to the government, Ukraine’s own tax revenues are largely absorbed by defense spending, making international budget support critical to keeping essential public services running. Total Swedish support to Ukraine is expected to reach at least ten billion kronor.
The government has also justified the aid cuts by pointing to domestic needs, including strengthening law enforcement, the prison system, and welfare services. Overall, Sweden’s total aid budget is set to fall from 56 billion kronor to 53 billion kronor in 2026, a change described by the government as the most far-reaching overhaul of development assistance in the country’s history.
Opposition parties have sharply criticized the move. The Green Party argues that the cuts undermine life-saving global efforts while benefiting high-income earners through tax reductions. The Centre Party has called the decision tragic, proposing that support for Ukraine be financed through a separate fund outside the aid budget to avoid reducing other international assistance.