At 10.00 a.m., the government revealed how the state budget for the election year 2025 will be as a whole. The allocations from the government are in line with an oil money expenditure of NOK 460.1 billion, but the government has assumed that inflation will eat up around 3 per cent of the budget items in 2025. All increases above 3 per cent will therefore be a real increase. Slightly more expensive snuff The fees on snuff, cigarettes and alcohol will be increased more or less in line with the price increase next year. While the tobacco tax for snus increases by 3.1 per cent. Then the tax for 100 grams of snus will be increased to NOK 100.01. The tax for cigarettes and alcoholic beverages such as wine increases by 2.9 per cent. Tobacco products that are snuffed have high taxes because the content is harmful to health. Photo: Tom Balgaard Electricity subsidy over 75 øre The government is planning for people to get help to pay their electricity bills next year as well. The electricity subsidy kicks in today when the electricity price passes 73 øre per kilowatt hour. This limit is increased to 75 øre. The support takes 90 percent of the price that goes over. Since the support kicks in in individual hours, it will also dampen price spikes on days with otherwise low prices. If the thousands fly this winter to keep the heat at home, the state will take 90 percent of the bill for the price spikes. Photo: Torbjørn Brovold / news Cheaper kindergarten and after-school care From 1 August 2024, kindergarten became cheaper and after-school care free for 12 hours a week for pupils in third grade. The maximum price in daycare was cut from NOK 3,000 to NOK 2,000 a month. For a family with two children in kindergarten, this means that you save NOK 22,000 a year. Already this autumn, the price of nursery school has been adjusted down. Photo: Lykke Frida Synnøve Høyås In the 189 most sparsely built municipalities, the maximum price was set at NOK 1,500 a month. At the same time, from 1 August stricter rules for cash support came into effect. Before 1 August, you received support from the child was between 13 and 23 months. In August, this was changed until the child is between 13 and 19 months. VAT cut for water and drainage Fees related to water and drainage have skyrocketed recently, which affects all home owners. In Oslo, prices are expected to rise by over 60 per cent until 2027. Last week, it was leaked from the budget proposal that the government will reduce the VAT on water and sewage by 4 billion on an annual basis. With a cut in VAT from 25 to 15 per cent, access to water and sewage will be somewhat less expensive. More job opportunities The government is increasing its efforts to get more people into work with NOK 690 million for those who are out of work. Among other things, the money will go to general labor market initiatives, a new youth program and “job opportunities” for immigrant women. More for disabled pensioners The government will increase the pension for around 150,000 disabled old-age pensioners. The government proposes to give a shielding supplement in the old-age pension also to those born between 1954 and 1962, corresponding to what was given to those born before 1953. This will cost NOK 393 million. More money for national insurance Expenditures for old-age pensions, employment verification benefits, disability benefits, sickness benefits and unemployment benefits are increasing. The total expenditure on the national insurance is estimated to be NOK 626 billion next year. This is an increase of NOK 44 billion. Tax relief for “ordinary people” Finance Minister Trygve Slagsvold Vedum (Sp) started the budget day by revealing how big a tax cut Norwegians can expect, compared to 2021. While everyone who earns over NOK 1 million will have to pay more tax, most Norwegians with an income below this limit get tax relief. The tax relief figures therefore apply for the entire parliamentary period. Savings and debt for young students Students who live out of town can have NOK 25,000 of their student loan written off per year. Then you must live in an outlying municipality for at least one year and be in work. The student grant is increased by 2.9 per cent. The increase is less than the increase in prices, which means that students will have a little less to worry about next year. The BSU scheme remains unchanged. This means that those under 34 can still save NOK 27,500 a year, and NOK 300,000 in total. In addition to favorable interest rates, savings in BSU also provide a tax deduction of 10 per cent. Published 07.10.2024, at 10.05 Updated 07.10.2024, at 11.25
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This is what the state budget means for you – news Norway – Overview of news from different parts of the country
