Budget 2017: Norwegian Finance Minister shores up jobs / News / The Foreigner

Budget 2017: Norwegian Finance Minister shores up jobs. The draft national budget proposal is about employment, welfare, and security, Norway’s Siv Jensen says. Adopting an upbeat tone, Thursday, she proclaims that the Scandinavian country “will emerge stronger from the challenging restructuring the economy now experiences.” Targeted measures to fight unemployment regarding regions and industries that are hardest hit by oil price drop are contained in the state document, states the Minister of Finance.

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Budget 2017: Norwegian Finance Minister shores up jobs

Published on Thursday, 6th October, 2016 at 11:59 under the news category, by Michael Sandelson   .
Last Updated on 13th October 2016 at 21:17.

The draft national budget proposal is about employment, welfare, and security, Norway’s Siv Jensen says.

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Leather travel case
Photo: zibber/Shutterstock Images


Adopting an upbeat tone, Thursday, she proclaims that the Scandinavian country “will emerge stronger from the challenging restructuring the economy now experiences.”

Targeted measures to fight unemployment regarding regions and industries that are hardest hit by oil price drop are contained in the state document, states the Minister of Finance.

“The Budget for 2017 is a budget for more jobs, better welfare, and a safe life,” Ms Jensen declares.

Growth in the mainland economy, increased growth in household demand for goods and services, and a better outlook reported by consumers and business leaders are mentioned in her statement. According to her, it seems that “a turning point” was reached last winter.

Registered unemployment has fallen in the majority of regions, it is said – respective September figures for oil industry dependent Rogaland and Hordaland Counties were at 4.3 and 3.3 per cent of the workforce (NAV (Labour and Welfare Directorate)). The government also projects a further strengthening in mainland GDP growth for next year.

Norges Bank’s record-low key policy rate (currently at 0.5 per cent), and the last three years’ Norwegian krone forex (ROEs at time of publication are 1 USD = 8.03 NOK, 1 EUR = 8.99 NOK, and 1 GBP = 10.22 NOK) are cited in connection with Norway’s economic recovery.

At the same time, Finance Minister Siv Jensen comments that the gradual increase in the Norwegian economy's growth means that 2017’s draft national budget proposal “is less expansionary” than the ones for 2016 and 2015.

“In the 2017 budget, we prioritize measures that promote growth and restructuring. […] It will become more profitable to work, save and invest,” she says.

The government proposes spending 3 per cent of the value of the Government Pension Fund Global (GPFG) – the maximum permitted under the current fiscal rule in 4 per cent.

This equates to an estimated forecasted structural non-oil deficit of NOK 225.6bn, an increase of NOK 20bn on the revised 2016 draft national budget proposal, and up NOK 30.5bn in the first draft proposal submitted in October last year.

Today’s statement highlights the main features of the government’s fiscal policy for 2017 as being:

  • Petroleum revenue spending equates to 7.9 percent of the GDP for Mainland Norway, and is up from 7.5 per cent in 2016.
  • Projected non-oil deficit is NOK 259.5bn – covered by a transfer from the Government Pension Fund Global.
  • Estimated net cash flow from petroleum activities to the Fund from petroleum activities is NOK 138.3bn – a NOK 13.8bn increase from 2016 to 2017.
  • Petroleum revenue spending corresponds to 3 per cent of the estimated capital in the GPFG at the beginning of 2017, up 0.2 per cent from 2016’s.
  • A 1.7 per cent real underlying growth in fiscal budget expenditure from 2016 to 2017. Expenditure is projected to grow by 4.1 per cent in nominal terms
  • Estimated consolidated surplus on the Fiscal Budget and the Government Pension Fund, which includes NOK 207.5bn in interest and dividends, is NOK 86.3bn
  • A general government financial balance of NOK 97.5bn – equivalent to 3 per cent of the GDP
  • Forecasted Government Pension Fund Global value is NOK 7,420bn at the end of 2016, and NOK 7,671bn at the end of 2017



Published on Thursday, 6th October, 2016 at 11:59 under the news category, by Michael Sandelson   .
Last updated on 13th October 2016 at 21:17.

This post has the following tags: oil, budget, money, wealth, tax, pensions, paywall.





  
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