Revised Fiscal Budget: Increased spending from oil revenues
revised National Budget, the government wants to use an additinal NOK 1,9 billion from oil revenues for the budget in 2014.
The revised National budget will include NOK 140,9 billlion from the Oil Fund. That is an increase of NOK 1,9 billion from what was estimated when this year’s budget was approved last fall.
“Since we presented the added proposition for a budget last fall we have received new information. We will spend NOK 1,9 billion more from the Oil Fund than what was estimated then,” Jensen explains.
Other changes in the revised budget include an increase of NOK 2,1 billion to the government, an increase in government spending of NOK 1,1 billion, and changes in taxes and fees that will result in a total reduction of NOK 165 million for the State Treasury.
“Let me remind you that we do not present a completely new National budget today, we present a revised version of the current year’s budget,” Minister of Finanse Siv Jensen pointed out during Wednesday’s press conference.
She added that the government is in favour of budgets that run over several years, and that they are working on a long-term plan where they want to view things in perspective rather than making larger, sudden changes to the budget every six months, Jensen described.
One of the reasons why the government’s expenses have increased is the high number of people who buy electric cars. Because there is a reduction in fees and taxes for those who buy electric cars, the government makes less money when people choose to buy them.
“From January to April electric cars have accounted for 13 percent of the sale of new cars. These numbers are very high. No other countries have the same proportion of electric cars as Norway does, and that is because of the favorable regulations for electric cars,” Jensen says.
The government is committed to keeping the favourable tax rates and fees for electric car owners until 2017. “What happens after this we will have to set down in Parliament and discuss,” Jensen says.