After protracted negotiations, the governing parties the Labor Party and the Center Party, together with budget partner SV, today presented the agreement on next year’s state budget. And the budget changes the personal finances of many Norwegians. Above all, SV has gained approval for several measures for families with children and people who are outside the workforce and are on various forms of social security benefits. AGREEMENT: Ap deputy leader Tonje Brenna, Sp leader Trygve Slagsvold Vedum and SV leader Kirsti Bergstø presented the budget agreement today. Photo: Terje Bendiksby / NTB Child Benefit and SFO To get things first: Child benefit is increased by NOK 2,400 a year for children over the age of six. – When more than one in ten children grow up in poverty, and the financial crisis hits families with children hard, it was important for us to ensure that we help even more people even more, says SV leader Kirsti Bergstø. At the same time, it is now clear that there will be free half-day places in the after-school scheme for more people. And already in the proposal from the government, it was clear that the price of daycare will be cut by NOK 1,000 next year, to NOK 2,000, in most municipalities. In some district municipalities, the price is NOK 1,500. OVERVIEW: SV leader Kirsti Bergstø. Photo: Terje Bendiksby / NTB On the other side, the government’s proposal to cut the cash support period is firm. At the same time, SV has prioritized raising the minimum rates in several of the benefits for people who are outside the workforce. The minimum rates are the lowest payouts, or the “floor”. From 1 July, the minimum rate for people with disability benefits increases by NOK 6,000. From the same date, the minimum rate for people on employment verification allowance or who are in the qualification program increases by NOK 5,000. A proposed real cut in support for people with particularly severe functional impairments is also being stopped. All rates are now price adjusted. Recipients of housing benefit also now receive more budget help: it is compensated for reductions as a result of increased minimum rates. Housing benefit is also protected against late payment of the social security settlement. The food center receives an extra NOK 10 million to help people who have too little money for food. Student jubilation Another group SV promises are the students – but only from 1 August next year. The student grant increases by 10 per cent, which is equivalent to NOK 14,000 a year. The vast majority of SV’s pass-through is paid without increasing taxes, but some tax measures are included in the budget agreement. In total, taxes and fees increase by NOK 1.3 billion, compared to the government’s proposal. There will be a tax increase for those with the highest incomes. This is done by lowering the entry point in step 5 of the incremental tax to NOK 1.35 million. Those who earn more than this will therefore receive somewhat increased tax. Otherwise, income tax and wealth tax are unchanged, which was an important point for the governing parties in the negotiations. – Before this year’s budget, we have been clear that we do not want increased taxes or major changes towards Norwegian companies and Norwegian business, says Finance Minister Trygve Slagsvold Vedum (Sp). Roughly speaking, the government’s proposal for car taxes is fixed. But small changes are being made to the CO2 component of the one-off tax for both vans and cars, according to E24. SV originally wanted a different model for electricity support than the governing parties, but the support is fixed in the budget agreement. This means that the state covers 90 per cent of the bill when the price exceeds 73 øre per kilowatt hour, on an hour-by-hour basis. AGREEMENT: Finance Minister and Sp leader Trygve Slagsvold Vedum was able to present an agreement today, together with Ap and SV. Photo: Terje Bendiksby / NTB Increased deductibles At the same time, there are no changes in the government’s proposal regarding deductibles. As a result, it will be more expensive to see the doctor next year. While this year you have to fork out NOK 3,040 to get a free card, the amount will increase to NOK 3,165 next year. Other deductibles are also increasing, which has not been changed since the budget negotiations: The deductibles increase by 4.35 per cent from the new year for doctor, psychologist and physiotherapy services, outpatient clinic, lab/X-ray, stay at training institutions, treatment trips abroad and patient trips. Certain deductibles are raised on 1 January, others from 1 July. Overall, deductibles increase by 2.2 per cent for the year as a whole. However, SV has received approval to spend NOK 300 million on county dental health, without it being clear exactly which groups in the population will benefit from this.
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This is what the budget agreement means for you – news Norway – Overview of news from different parts of the country
