The revised budget gives Finance Minister Trygve Slagsvold Vedum (Sp) the opportunity to adjust spending this year. The government will spend NOK 372.6 billion in 2023. This corresponds to 3 per cent of the fund, and involves an increase in the use of oil money of NOK 56 billion. The budget for 2023, which was presented last autumn, had a neutral effect on the economy. The latest version, on the other hand, will increase value creation for mainland Norway by 0.3-0.4 per cent, measured by GDP. – It was known that expenses would increase more, and that the budget balance would be weakened. The main figures in the budget are clearly higher than I thought. Now the budget seems expansive in the economy, meaning it helps to drive activity up, says chief economist Harald Magnus Andreassen at Sparebank1 Markets. Ukraine’s billions are picking up speed and spending in the Norwegian economy, according to the government. The Ministry of Finance writes that the budget is “set up within a responsible financial framework, with a limited effect on activity in the mainland economy”. Norges Bank, which raises interest rates to cool the economy, thought in March that the government would come up with a budget that gave a little less fire to the economy. But the increased spending is unlikely to be enough to make Norges Bank raise interest rates even higher, according to Handelsbanken. Chief economist Marius Gonsholt Hov at Handelsbanken. Photo: Lise Åserud / NTB – We should not exaggerate the importance of the interest rate outlook going forward, says chief economist Marius Gonsholt Hov. How the money is distributed will become clear at 10.45am. The Minister of Finance holds a press conference at 11.00. Price growth creates headaches Money spending will, among other things, increase because prices have risen more than expected. The government thought that prices would rise by 2.8 per cent this year, but the price increase will by all accounts be considerably higher. In April, prices were 6.4 per cent higher than a year ago. The government announced in February that the public sector must be compensated for higher prices. – Just that in itself is a big boost that we will do in a responsible way in 2023, in order to achieve the goals I say: secure governance, secure people’s jobs and contribute to the transition Norway is going through in the green shift, said Prime Minister Jonas Gahr Støre (Ap) to news on Wednesday. The state receives more when prices rise Stronger than expected price and wage growth does not just result in increased expenses. Hov points out that income to the state increases when, for example, people have to tax more of their wages, or VAT income increases because all goods become more expensive. – When it comes to technicalities around price growth and wage growth, we must remember that it affects both the expenditure and income side, he says to news. The Conservative Party raises questions about spending The government was keen this winter to avoid spending that could fire up the Norwegian economy and lead to stronger price growth. Among other things, it was used as a justification for the fact that people with low social security rates did not get more help to withstand the rise in prices. Conservative Party leader Erna Solberg is concerned that the government must generally hold back on spending, and will follow the figures with a skeptical eye on Thursday. – Much more money will now be spent in the revised national budget. What makes it so that there is now a basis for spending more oil money? Is there lower price growth? Another economic development? asked Solberg during Question Time in the Storting on Wednesday.
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Now the government will come up with the key figures for 2023 – news Norway – Overview of news from various parts of the country
