Norway Cuts Oil-Money Spending Estimate in 2010 on Higher Taxes

Norway will spend less of its oil wealth this year to cover the budget deficit than previously indicated after tax revenue was higher than estimated, the Finance Ministry said.

The structural non-oil deficit, adjusted for petroleum revenue and swings in economic output, will be 119.6 billion kroner ($19.8 billion), or 5.2 billion kroner smaller than estimated, the Oslo-based ministry said in an e-mailed statement. The deficit was revised after calculations in connection with the 2011 budget showed higher revenue for 2010.

Norway, the world’s seventh-largest oil exporter and second- largest natural gas exporter, puts most of its petroleum revenue in a pension fund that invests abroad to avoid stoking inflation in the domestic economy.

To contact the reporter on this story: Josiane Kremer in Oslo at Jkremer4@bloomberg.net.

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

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