Announces Greater Crown Support in “Expansive” State Budget – E24

Nobody could predict what would happen to Norway and the world in 2020. When next year rolls around, Erna Solberg will give us something to look forward to.

On Wednesday, the government will present its state budget proposal for 2021.

– What we are doing now is lowering the measures because we are heading for a better situation. But we still maintain a whole range of measures that are important, says the Prime Minister from his office the last Friday before the budget proposal arrives.

Solberg informs VG that the government will spend approximately NOK 25 billion to handle the corona pandemic in the new year ahead.

– The last few months have shown us that the corona pandemic is not over yet. We will also do whatever it takes to keep Norway safe through the corona pandemic next year, he says.

Although the head of government has the cards close to his chest before Wednesday, Solberg admits that planning state spending for 2021 is a challenge.

– The creation of a state budget has been demanded in these times of crisis, adds Finance Minister Jan Tore Sanner (H).

In January, she took over from Siv Jensen when she removed the Progress Party from the Solberg government.

– In the budget for 2021, we will spend more money than we would have spent in a normal situation. It will be an expansive budget, and it is important that people get back to work and activity. But we still spend slightly less than we did in 2020, he reveals.

Solberg wants fewer state dependents

2020 will be a year of record use of public money. Even before the government’s proposed budget for 2021 ends, it is ready for new crisis packages, including for the tourism industry.

– The strategy is to create growth in the Norwegian mainland economy, stimulate growth so that we get other income, says the leader of Norway, the government and the Conservatives.

On a gray October day in Oslo, there are still some bright spots to see from the Prime Minister’s office.

– Retail is very much an industry that has done quite well. Not all, but many in this industry have it.

The Prime Minister announces that there will be a clearer priority. This may mean less direct financial support to industries that are Less affected by corona measures.

– Our primary focus is on the places where our infection control rules really do create market change. Our main message is to create more and include more, you will hear a lot about that, he says with a smile.

Instead of the virus, new businesses will flourish in the future.

– We must be good at phasing out some of the measures that have now been based on the crown, and which in time we must eliminate again when we get into a more normal situation. So it is important in the future to get more companies that contribute to the state budget and less depend on the support of the state budget.

Sanner: «Fragile development»

After a historically strong recession for our economy, Sanner now sees clear signs of improvement.

– Activity has recovered. People spend more money. We see that house prices have risen and not fallen as some predicted. The price of oil has also stabilized at around $ 40 a barrel, he says.

The rapid management of the pandemic with relatively good control of the infection is part of the explanation of the Minister of Finance and his boss, Erna Solberg.

They believe that the most important financial measure is that people actually follow the infection control rules.

– In 2021 we will also take away the corona pandemic, and the crisis is not over. Although we see a positive evolution in the decrease in the number of laid off and unemployed, it is a very fragile evolution.

Reset to oil lubricated state

The price of oil fell dramatically when the pandemic hit, and has barely stayed above 30 on several occasions in recent months.

Uncertainty about the large source of income has given politicians even more to think about in financing Norway’s welfare state.

Solberg mentions that aquaculture is on the rise, but emphasizes that it is generally the industries on the continent that must grow to make Norway less dependent on oil on the income side.

– There are many other interesting areas where we now see that, based on research environments, new companies are emerging. We need to get better at creating these growing companies.

The Prime Minister believes that too many macro and political experts underestimate what startups need to be profitable and create new jobs.

– It is often a bit of an easy attitude how difficult it is. And in a high-cost country like Norway, it’s even more difficult. As I often say: we should be smarter, not cheaper.