Economics
Norway Sees Budget Pressured by Welfare, Power Subsidies
- Areas including construction, energy price aid need more funds
- Authorities face risk of fueling inflation as economy booms
Commuters at Majorstuen railway station in Oslo.
Photographer: Fredrik Solstad/BloombergThis article is for subscribers only.
Norway is facing an increasing funding need of “tens of billions of kroner” in its state budget for next year just as it seeks to rein in spending of the nation’s oil wealth.
The growth in expenditure is coming in areas such as national insurance, the integration of Ukrainian refugees, ongoing construction projects and continued electricity subsidies for households, the finance ministry said in a statement on Sunday. Spending in these four areas alone is expected to increase by about 100 billion kroner ($9.8 billion) in 2023, compared to the balanced budget for 2022, it said.