Public deficit for the first time in 25 years – E24

– The figures are uncertain and can be revised, but as they are now, we will probably see a quarter with a deficit in public administration. In that case, it is the first time since 1994, says Pål Sletten, manager of the national accounts section of Statistics Norway (SSB), in a press release.

Statistics show that Norway’s gross national income (GNI) fell by 9 percent from the first to the second quarter.

The general government deficit is measured by net financial investments. While these in the first quarter were NOK 22 billion plus, they fell to NOK 83 billion minus in the second quarter.

Both oil revenues and tax and duty revenues fell dramatically.

– Central government revenues have fallen and expenditures have increased. Thus, the public sector has protected the private sector from most of the decline in national income. The counterpart is that the state for the first time in a long time goes from saving to deficit, Sletten explains.

Norway has had an average general government surplus of 10.7% of gross national product (GDP) from 2002 to 2019.

In the second quarter of 2020, the figure was minus 10.3 percent.