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The government proposes to allocate NOK 7.3 billion in crown compensation to Norwegian municipalities in the first half of 2021.
During a press conference on Thursday, the Minister of Local Government and Modernization, Nikolai Astrup, will present proposals for measures aimed at the municipal sector.
– We will defend the municipalities. It will be offset by additional expenses and lower revenues as a result of the crown, says Minister of Local Government and Modernization Nikolai Astrup.
A working group with representatives from KS and various ministries recently presented an interim report on municipal finances in the wake of the pandemic.
– The proposals are based on the calculations of the working group, says Astrup.
The government proposes to allocate NOK 7.3 billion in crown compensation to Norwegian municipalities in the first half of 2021. Additional allocations to municipalities will be formally presented in the form of a so-called supplement to next year’s state budget on November 6.
The money is distributed as follows:
- NOK 5.9 billion to municipalities.
- 4.4 billion is awarded as a population grant increase.
- NOK 1.5 billion are distributed as discretionary funds.
- In addition, municipalities receive NOK 321 million from the framework grant for compliance-related positions for events, restaurants and employees.
- NOK 950 million goes to county municipalities through increased discretionary grants to cover lost ticket revenue on public transportation, reduced user fees for dental health service, and additional expenses on upper secondary education.
- The government also proposes NOK 100 million so that more people can use the right of adults to upper secondary education.
According to the Minister of Local Government, so far this year more than 20 billion have been added in extra transfers and financial measures.
In the last year, city councils have combined routine tasks with strict infection control requirements and great pressure on health services. It has been demanding and expensive for many municipalities. That is why it is important for the government to stand up, says the minister in a press release.
The appropriation proposals in the supplementary number are in addition to the proposals that are already included in the Government’s proposal for the state budget.
At the same time, Astrup says it has been difficult to get an overview of what the corona pandemic has cost municipalities. The working group will examine this until August next year.
