Background & Purpose

State grants and subsidies to businesses are sometimes misused or paid out incorrectly, which harms public funds and fair competition.

The Decision

The Swedish parliament approved the government's proposal to establish a dedicated subsidy fraud act to tackle the misuse of state support.

Does this affect you?

  • Companies receiving state grants: Must ensure all application details are correct and that funds are only spent on the approved purpose to avoid criminal liability.
  • Authorities and regions: Must actively monitor applications and report any discovered errors or misuses to the paying organization.

In Practice

  • A new specific crime called subsidy fraud is introduced for providing incorrect information or hiding changed circumstances.
  • It becomes a punishable offense to use financial support for something other than what was originally approved.
  • Authorities and regions must report incorrect payments to the organization responsible for distributing the funds.
  • Rules apply to both state authorities and regional bodies handling welfare-related business support.