Norway Increases Oil Wealth Spending to Ward Off Recession
- Fiscal stimulus impulse rises to 1.1ppt from 0.7ppt: Budget
- Withdrawals from oil fund to rise to NOK84 billion in 2016
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Norway’s government boosted the amount of oil money it will spend this year to a record, dipping deeper into its sovereign wealth fund to ward off a recession.
The government will use 205.6 billion kroner ($25 billion) of its oil wealth, up from the 195.2 billion kroner it estimated in October, according to the budget released in Oslo Wednesday. The spending will have a stimulus effect of 1.1 percentage point, which is the most since 2009 and up from 0.7 percentage point in the initial budget.