"I don't think it's so complicated that you have to, in the outline stage of a proposal, take one step forward, two back, and one to the side before you find a better way ahead," Finance Minister Anders Borg told the TT news agency on Friday.
Borg said that the budget would instead aim to bring in tax kronor on alcohol and from environmental tax on vehicles.
"I think it is better that you don't have to lower study grants, but instead can pull this money in through taxes," Borg said.
Borg had already defended his three-week old proposal several times when the prime minister announced on Thursday that it would be retracted.
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