Sweden's centre-right government will reduce taxes for pensioners, the leaders of the four party coalition said today, in an expansionary budget that aims to boost growth as the economy feels the chill from the euro zone crisis.

Sweden's robust public finances mean the Alliance government has been able to outline around 24 billion Swedish crowns ($3.67 billion) of extra spending and tax cuts in its 2013 budget.

Pensioners' tax will be cut by between 500 and 700 Swedish crowns a year, the government said in a signed leader article in daily Dagens Nyheter.

"A big part of Europe's population is going to have to live with tax hikes and welfare cuts for many years to come," the four party leaders said, pointing to austerity measures across the continent needed to balance public finances.

"In Sweden the situation is different, thanks to responsible policies that have secured a strong and stable ground for the Swedish economy."

The measure for pensioners will cost around 1.15 billion crowns a year.

The government will also raise the living allowance for single pensioners and promised to look at pensioners' tax situation again in the budget for 2014.

Most of the centre-right's tax measures since it took power in 2006 have been focused on reducing income tax, leaving pensioners disgruntled.

The government, however, said the average pensioner paid around 600 crowns a month less in tax than six years ago.

The Alliance government has already revealed the bulk of measures in its 2013 budget, to be published on September 20, including a reduction of corporate taxes and investment in infrastructure and research.

Sweden is expected to run a small budget deficit this year and next, but its debt levels are nevertheless expected to fall to below 30 percent of gross domestic product in the coming few years from around 33 percent in 2012.