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On Wednesday the state budget proposal for next year was presented.
One of the most surprising things is that the government already in 2021 aims to return to the rule of thumb for the use of oil money, despite the fact that Finance Minister Jan Tore Sanner emphasizes that we are experiencing the most setback. depth of the Norwegian economy in the post-war period.
In 2021, the government proposes to use 313 billion crowns of oil.
This is a sharp decline from this year’s oil money use of NOK 404 billion, but still much more than the normal year 2019 when NOK 252 billion was spent.
NRK
Explain
Why is the state budget important?
for answers
We’ll see how much Norway has to deal with
The state budget shows how much money the government thinks will go in and out of the state’s wallet. Then we will see how much the government will spend on, for example, the sick, schoolchildren and aid to companies.
How long do we really have to go?
Norway receives so many billions in taxes, fees, and oil money that the state can spend nearly three times more money on each inhabitant than Sweden and Finland.
But why do politicians say we have to save then?
Although Norway is in a privileged position in a global context, there will be less money to extract from oil in the future. We are also less at work and more of us who receive money from the state.
What does that mean for me?
In the long run, politicians must cut the deals we appreciate today or get more money from taxes and fees. It can spark important political debates.
How much of the oil wealth will the government intend to spend?
The Petroleum Fund is worth 10.5 billion. The government plans to spend NOK 313 billion in 2021. Politicians aim for the state budget to spend no more than 3 percent of the return on wealth.
How can politicians plan for 2021, if no one knows when the crown crisis is over?
The government and the Storting are required to plan how much money enters and leaves the state next year. The government will present how much more it assumes the pandemic will cost us.
Who decides what the budget will be like?
For a year, the government is working to create a state budget. But it is the majority of our elected representatives in the Storting who have the power to pass the budget.
How powerful are the ruling parties in the Storting?
Krf, Høyre and Venstre only have 61 of the 169 seats in the Storting. This means that if the other parties are not satisfied, the budget must be changed to be adopted.
Can my county or my municipality decide something?
When the government prepares the budget, all counties and municipalities can say what they need. But it is the representatives of their region who must fight in the Storting.
When do we know what will be in the government’s proposal for the state budget?
On Wednesday at 08.00, the government will publish the most important key figures of the state budget on regjeringen.no. At 10.00 am the entire budget will be available.
Why do parties also come with their own budget?
The parties’ alternative budgets show how they would manage the Norwegian economy if they could decide for themselves. Then the voters will see what the parties will fight for in the budget negotiations.
When must the budget be approved?
The Storting must agree on the budget before the new year begins. If the parties do not agree, Norway will end in a budget crisis.
What happens after the state budget is approved?
The state budget authorizes the Storting government to manage the country’s economy. The government has a duty to follow the budget, even if the government does not agree with everything that was approved.
Do politicians spend too much oil money during the crown crisis?
3. 4%
66%
708 votes
I don’t want to let money go crazy
That it is lowered back to the three percent oil money usage guideline next year, even though the corona pandemic is not over, is a clear signal from the government that they don’t want to let the money drain. go crazy, even if it’s a crisis.
Fiscal policy is characterized by a dilemma between things going better compared to what was thought; Unemployment has dropped a lot and Norway has done much better than many other countries, while we are still not out of the crisis.
Truth difficult between the lines
A key message in this year’s budget is that the state will not pay for everything to be exactly as it was before the crown:
– Some industries will continue to need additional help to overcome the crisis. At the same time, we will facilitate value creation and green transformation, to meet the challenges that lie ahead, says Sanner today.
Between the lines lies a difficult truth:
Businesses go bankrupt. Jobs will be lost forever. Some industries will never return to normal.
The word change means that something must change.
Unemployment
Completely unemployed in Norway
116 761
total
5 468
less
March 3 chart
Updated September 1
Unemployment benefits in case of dismissal
Submitted Applications
March 9 chart
Updated September 7
Won’t throw good money after bad
In other words, Sanner doesn’t want to make it too easy for industries that may not have the right to life as they are run today.
You will not throw good money after the worst.
History has several examples of how bad things can turn out, such as the current crisis for offshore shipping companies, which has been compounded by overly generous funding from the industry during the previous crisis.
The wondering parent
“All” economists agree that it is important and correct to spend money now, and that it is cheaper to help companies overcome the crisis than to let them fail. It takes a long time to create new jobs.
But the looming danger is that the Norwegian economy’s ability to grow may be hampered by excessive measures against industries that do not have the right to life.
This can lead to Norway being less strong than other countries in a few years. If we use too much of our oil wealth to counter change, it can make us less equipped to face the wave of aging, for example.
Industries must carry out restructuring
Sanner doesn’t delve into exactly which parts of the industries need to adapt.
Nor does it present concrete proposals on how it should be done and where we are going. As he indicates; It will facilitate this, but it is the industries themselves that must carry out the restructuring.
For people who have now been laid off, it is not easy to know exactly what to do. If you are laid off or laid off from your job, for example as a hotel clerk or ground crew, you are no doubt wondering whether to invest in recycling right now, or you should wait and wait for the industry you work in to return.
Stretch out on the team
Although the government firmly believes that the Norwegian economy will come back strong next year, the gaps between workers in this country may continue to widen.
An A team that is still at work and a B team that has worked in industries that may never get back to where they were.
The leg on the team is amplified by the fact that Team A receives even more money with record low interest rates, allowing the purchase of bigger houses, cabins and cars.
