In 2012, Norway economy is expected to grow with increased investments in the oil and gas sector and low interest rates. It is estimated that the growth will be equivalent to the historical average growth rate of the Norwegian economy.
Highlights of Norway National Budget 2012:
The GDP of mainland Norway is expected to grow by 3.1 percent in 2012 fiscal compared to the 2011 growth rate of 2.8%.
In 2012 fiscal unemployment will remain at 3.25 percent.
As per Norway budget 2012, the Ministry of Education and Research will look to maintain the day care rates applicable for 2011, student places, elective subjects at the lower secondary level and reinforce primary level research.
The Ministry of Local Government and Regional Development will provide regional authorities a minimum financial assistance of NOK 2.68 billion. This amount will be used to determine policies at regional and rural levels.
Approximately 18 billion Norwegian krone will be provided for development in the regions and rural sectors.
The Ministry of Local Government and Regional Development will also make available NOK 5.6 billion to the local officials for introducing the interaction reform.
Liv Signe Navarsete, the Minister of Local Government and Regional Development, has stated that these funds will be useful in executing important tasks.
As per the Norway National Budget 2012, the High North region is the most important one for the national government with regards to foreign policies.
The Ministry of Foreign Affairs has stated that in the High North the main areas of emphasis will be petroleum exploration, setting up a technology building at University of Tromso, and simplifying border related processes with Russia.
The government has added NOK 45 million to its budgetary allotment for promotion of human rights and democracy. Jonas Gahr Store, the foreign minister, has stated that the latest events in the Middle East have shown that human rights and democracy are important components of good governance.
In 2012 fiscal the Norwegian government will help people who are facing problems in the housing market. Through the Norwegian State Housing Bank the government will be providing starting loans, helpful programs and related housing support. Liv Signe Navarsete has stated that the government will be giving top priority to social housing policies.
At present the housing sector in Norway is experiencing a paucity of homes especially at the municipalities. So the government will be aiming to provide a subsidy of NOK 20 million to address this problem.
As part of Norway budget 2012 the government has also proposed that the Rent Disputes Tribunals offices at Trondheim and Bergen cater to people living in Trondelag and Hordaland counties.
In 2012 fiscal the Norway government has proposed that Trondheim and Bergen be provided 7.5 million Norwegian kroner. This money will be used to deal with regional and environmental challenges through area initiatives.
In 2012 the real income of local authorities is expected to grow by NOK 5 billion. Navarsete has stated that the 2012 Norway Budget has given a lot of priority to the local authority sector.
Jonas Gahr Store has stated that in 2012 the national government will be adding 183 million Norwegian kroner to its humanitarian contributions.
The new amount will be NOK 2.2 billion. As per Gahr Store this money will help in protecting Norwegian people from the effects of the ongoing global financial problems.
Norway has set aside 27.8 billion Norwegian krone for assisting economically underprivileged countries in 2012. This record amount will focus on climate change, agriculture and renewable energy and make up 1.1 percent of the Gross National Income.
In 2012 individual tax payers with minimum net wealth of NOK 750,000 will be subjected to income taxes. In case of spouses who are paying taxes jointly, this amount will go up to 1,500,000 Norwegian krone. In 2011 fiscal this amount stands at NOK 700,000.
In Norway tax payers are eligible to receive personal allowances for paying municipal taxes. It has been proposed that this amount be increased to NOK 45,350 in 2012 from NOK 43,600 in 2011. In case of spouses filling their taxes together the proposed amount is NOK 90,700; the same amount for 2011 fiscal is NOK 87,200.
The proposed minimum allowance for dealing with employment related expenses in 2012 is NOK 78,150. In 2011 this amount stands at NOK 75,150.
The upper limit of deductible amount for contributions to be made by trade unions is expected to be increased in 2012 to 3,750 Norwegian kroner from 3,660 Norwegian kroner in 2011.
Norway Budget 2012 – Deficit:
Experts opine that in 2012 the Norway national budget can see structural non-oil deficit amounting to 122.2 billion crowns but the deficit could be reduced by the government who are permitted to spend a maximum of 4 percent from a sovereign wealth oil fund.
It is being said that the structural non-oil deficit in 2012 fiscal will amount to 3.9% of the oil fund, which is more than the 3.5 percent the government is supposed to spend in 2011 fiscal. According to earlier forecasts the government would have spent 3.7 percent of the oil fund in 2011.
Norway Budget 2011 – Information:
It is estimated by the Ministry of Local Government and Regional Development that in 2011 fiscal the municipal sector will earn additional tax revenues of NOK 1 billion. National ministers are expecting that this additional income will be used for purposes like payment of debt and overall improvement of economic situation.