Government coalition parties to focus on measures for employment, income tax cuts and a halved service tax for the restaurant sector.

• Record support for Sweden's Prime Minister
• Swedish politicians adopt US-style campaigning

The Swedish government, which is vying for re-election on September 19, presented on Thursday a plan for tax cuts and spending measures worth 32.7 billion kronor (3.4 billion euros, 4.4 billion dollars) for the next mandate.

The four-party coalition, which according to recent polls is in a tight race with the left-wing opposition bloc, said it would implement expenditure of 12.8-billion-kronor next year alone "to protect and develop welfare, better conditions for workers and business owners as well as strengthen young people's opportunities for education and jobs."

The government said it plans to focus on measures for employment, income tax cuts, a halved service tax for the restaurant sector and financial commitments to education and welfare if it wins a new term.

Prime Minister Fredrik Reinfeldt told reporters the government "did not promise more than it could keep" and that the tax cuts would cost less than 25 billion kronor for the four-year period.

Many of the measures included in the government's manifesto had already been announced by either the Moderate, Centre, Liberal or Christian Democrat parties which make up the ruling coalition.

The Liberal Party, for instance, wants to start grading students at around 11 years of age, while the Centre Party is pushing to sell off part or all of government-owned companies TeliaSonera, Nordea and SBAB.

Industry Minister and Centre Party leader Maud Olofsson also pleaded for opening up fully state-owned energy giant Vattenfall to minority shareholders.

The government also said it wanted to "extend the right to be employed" to the age of 69 from 67 today.

Opposition leader Mona Sahlin lashed out at the government's plan, saying it prioritised tax cuts over "more employees in the care-giving sector and schools, higher climate ambitions and the opportunity for citizens across the country to have a richer life."

"The 15 billion they want to slash in income taxes, we will invest in jobs, welfare and climate," she said in a statement.

The government is hoping a strong economic recovery will help it win a second term.

Sweden's economy was hard hit by the global financial crisis but emerged from recession in the second quarter of 2009 and is today considered one of the strongest in Europe.