Some $15.3 million a year had been budgeted for the program when it began in 2009, The Local.se reported Thursday.
Only $2.8 million had been spent by 2011.
Integration Minister Erik Ullenhag said the program had had only "a limited effect,"
"Too few people completed the studies," he said.
The program was created to help immigrants better integrate into Swedish society. It paid the costs for a year of language courses.
It is scheduled to end in mid 2014.
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