"This painful decision is a consequence of the recent decision of the Riksdag to cut funding to the Government Offices by 300 million Swedish kronor (33.4 million euros, 43.7 million dollars)," Foreign Minister Carl Bildt said in a statement.
Prime Minister Fredrik Reinfeldt's centre-right government was re-elected with two seats short of a majority in September.
Early this month, it narrowly lost a vote imposing a funding cut to government offices, defeated by the leftwing opposition and the far-right Sweden Democrats which entered parliament for the first time in September.
It was the first time Reinfeldt's four-party coalition lost a vote in parliament since the election.