Sweden's lawmakers have started debating the budget proposals of the minority government which faces a vote of no confidence in Parliament after a far-right party said it would side with the opposition to force the left-leaning coalition to resign.

After late-night talks with government partners and center-right opposition parties, Social Democrat Prime Minister Stefan Lofven said he would wait until the debate to decide whether to step down.

Lofven also could withdraw the budget proposal for further consideration, which would postpone Wednesday's vote or wait until Dec. 29 to call a new election.

The right-wing Sweden Democrats, which all other parties oppose because of its strong anti-immigrant stand, said its aim is to force the collapse of the government by siding with the center-right opposition in the budget vote.