– We are concerned that the police, our hospitals, schools – that they should be able to do the job that we want them to do. If the price increase is much higher than what was assumed, then they will not be able to do the job, says Trygve Slagsvold Vedum to news. The Minister of Finance therefore warns that he will do something very unusual: Distribute money widely to compensate for the increased prices. – We want to provide peace and security. And say that if the price increase is higher than what was assumed when the budget was set in October, then it must be compensated or adjusted in connection with the revised national budget. Missing price growth When the state budget for 2023 was presented on 6 October last year, a price growth of 2.8 per cent in 2023 was assumed. Most economists now agree that this forecast is far too low. Statistics Norway’s forecast for consumer price growth in Norway for 2023 is now 4.9 per cent. As a result, billions of kroner that should have gone to the public sector, such as hospitals, road construction and the police, have been eaten up by the strong rise in prices. It is only a couple of weeks since Health Minister Ingvild Kjerkol announced that the hospitals had to make tough cuts. Now they may not have to cut as much after all. “When presenting the state budget in October last year, the government emphasized getting a responsible budget, which restrained the use of money in order to counteract the rise in prices and interest rates that affect most people. Updated estimates for wage and price growth this year are higher than what was assumed last autumn. If it is not adjusted, this year’s budget will appear significantly tighter than was intended,” writes the government in a press release. When Finance Minister Trygve Slagsvold Vedum presented the state budget in October last year, the estimate for price growth for 2023 was 2.8 per cent. Photo: Hanna Johre / NTB Several billions The state budget for 2023 is NOK 1,748 billion. If prices rise by 4.9 per cent instead of 2.8, as was assumed in the national budget, this means many billions will have to be added. – Yes, there are many billions per percentage point, says Vedum. – How many billions could it be, then? – Yes, when you have to see an entire country, all the hospitals, all the police stations, all the schools, all the nursing homes – then it will be a large amount, replies Vedum.
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The government will spend billions extra to compensate for rising prices – news Norway – Overview of news from different parts of the country
