Facing an economic prognosis worse than initially anticipated, Region Dalarna in Sweden is bracing for a budget shortfall exceeding one billion kronor for 2024, more than double the planned deficit.

Sofia Jarl, a regional councilor, emphasized the severity of the situation and the ongoing efforts to identify possible efficiencies and prioritizations across all operational areas to mitigate costs.

Last year, a cost-saving plan aimed at halving the deficit included reducing temporary staff in healthcare and cutting back on external medical services to boost in-house capacity.

Despite these measures, the preliminary financial outcome for 2023 showed a deficit of 546 million kronor.

Jarl acknowledged the existence of a contingency reserve but stressed its insufficiency to cover the shortfall, highlighting the urgent need for economic stability.