The growing gap between demands and resources is putting immense pressure o
n all government spending in Sweden. Tbe gap is especially apparent in cars
and services for elderly people in light of the rapid aging of the populat
ion. The article considers the decisions and priorities concerning resource
allocation in the welfare sector in general and in elderly rare in particu
lar. The aim is to describe the political and administrative setting and to
provide it conceptual structure that outlines the nature of the problem. V
arious levels of decision making are identified and discussed in the contex
t of political accountability. Current transitions in elderly care are desc
ribed with respect to service provision, marketisation, coverage rates, and
eligibility standards. Basic principles of distribution an highlighted in
order to clarify some central concepts of efficiency and justice, and a num
ber of strategies for actual prioritising are identified. The article concl
udes with an endorsement of more conscious decisions in resource allocation
. Existing knowledge and information concerning the effects of various stra
tegies must be utilised, and the values and assumptions used far setting pr
iorities must be made explicit.