Swedish Social Democrats to raise jobs, welfare spending by $5.7 billion: paper

STOCKHOLM (Reuters) - Sweden's Social Democratic party, which looks set to form the country's next government after elections this month, said on Tuesday that it would increase spending on welfare, schools and jobs by 40 billion Swedish crowns ($5.7 billion) if elected. In an opinion piece in the newspaper Dagens Nyheter before Tuesday's release of the party's election manifesto, four top Social Democrats said the only tax they would cut would be on income for pensioners. Taxes on banks and those with high incomes would be raised. The Social Democrats have previously said they would raise taxes by about 30 billion if elected. The Social Democrats, the biggest opposition party, is leading in opinion polls together with the Left and Green parties, over the four-party centre-right Alliance government ahead of the Sept. 14 vote, although the lead appears to be narrowing. (1 US dollar = 7.0047 Swedish crown) (Reporting by Sven Nordenstam; Editing by Larry King)