Sweden Democrats to back opposition on budget, government teeters

STOCKHOLM, Dec 2 (Reuters) - The anti-immigration Sweden Democrats said on Tuesday they would back the centre-right opposition over a budget vote this week, spelling defeat for the Social Democrat-led minority government's bill and leaving its hold on power in doubt.

"In the current situation ... we will vote for the Alliance budget proposal," acting Sweden Democrat leader Mattias Karlsson told a news conference.

Parliament is scheduled to vote on the budget on Wednesday and Prime Minister Stefan Lofven has said he could resign if his finance bill doesn't pass, although he could also look to get support from the centre-right for a reworked budget.

In Sweden, each party or coalition can put forward a budget proposal and the one backed by the most votes wins.