In this paper we will discuss about the Norway budget for the financial year 2008. The government mainly focused on the non oil deficit. Lot of stress had been given on improving the environment and education. The budget proposed several policies to reduce the unemployment rate.
The economy of Norway has been expanding over the last three or four years. It is maintaining an average annual growth over 4.5%. However, the Norway budget 2008 mainly focused on the non oil deficit.
The budget proposed several financial policies to advance the country’s economic growth further. These are listed below :
The government of Norway estimated a budget deficit worth 76.8 billion NOK in the non oil sectors.
The government gave a lot of emphasis on education and health care. A huge amount of money had been allocated in the budget for the child education programs.
The Norway budget 2008 allocated 24.6 billion NOK for the improvement of environment. The government also encouraged the young generations to go for environmental studies.
The tax rates , both direct and indirect, had not been changed in the budget 2008. The government introduced a new tax which favored the on going pension saving scheme. However, the tax base for the wealth tax would be broadened.
The special tax regime for the shipping companies would be revised by the government. Moreover, the budget proposed to minimize those government fees which were overpriced.
The 2008 Norway budget had given several proposals to reduce the rate of unemployment.
The budget promised to bring the oil prices down at 360 NOK per barrel within the end of 2008.
Almost 500 million NOK had been allocated in the Norway budget 2008 to buy Emission Reduction Units.
The Norwegian government allocated nearly NOK 31.5 billion in the 2008 budget for the defense sector.