President,
Norway is a good country to live. Compared with most other countries, we have better opportunities to shape a good future for our children and grandchildren. At the same time we are able to make life easier for people living today.
We have no guarantee that the positive trend continues. Therefore, we must not only ensure that next year will be better for citizens, but also to facilitate the proper development in the years to come.
The proposed budget for 2015 is about solving important challenges in the community and to allow for future Norway.
President
Next year’s budget reflects that we have a new government with new political priorities. The government provides for increased growth in the economy so that it can create new, good jobs. At the same time we are strengthening the key welfare areas. We propose to increase investment significantly, as we said in Sundvolden platform. We take policy choices to build the country for the future. At the same time we also solve the challenges of our everyday lives now. Therefore, the Government found the room to focus on the transport, health, knowledge, municipalities, justice and emergency preparedness. We also strengthening the social safety net for people who do not have it as good as most of us, including substance abuse and mental health.
We prioritize so because we have big ambitions on behalf of its citizens. An ambition to increase the safety, security net, giving citizens greater freedom and improve the welfare of society.
People do not live their lives in tables, graphs or calculations. We live our lives with family, friends and colleagues, with our own dreams, our own goals and our own challenges. A4-man does not exist. We are all different. Government policy is therefore not about controlling people’s lives from cradle to grave, but to give people opportunities to make their own choices for themselves and their family. The Government and Parliament should create a framework that helps to create good jobs, creating security for life, health and property and freedom for people to make their own choices. The community created by all individuals who every day live their unique life.
This budget helps to create a strong and solid frame with a financially responsible policies. We ensure to enhance the welfare and growth. It is the way we as politicians can help give people the freedom and security in everyday life.
President
Although Norway is doing well, there are some clouds on the horizon. We have had low growth in productivity over the past eight years. There are signs that demand from the oil sector will decline. Therefore, it is important to give Norwegian companies better conditions so that they can compete with foreign firms. To contribute to good jobs is both good social policy and a prerequisite for building the welfare of our society on.
President
The weak trend in the global economy in recent years shows that it takes a long time to recover after a financial crisis. In the euro area, economic activity is still lower than before the financial crisis. While interest rates are very low, banks in many countries little capacity to increase their lending. Most places are investments remain low.
The growth among our trading partners are still trying to pick something up and approaching normal levels. Unemployment out can then go down slightly.
But the uncertainty is still large. Developments in the Middle East and Ukraine has been the source of new unrest. The restrictive measures against Russia, and responses may dampen growth somewhat. Should there be a marked slowdown in China and other emerging economies, would affect global growth and pushing down the prices of oil and other commodities.
Compared with other countries, Norway has been fortunate in recent years. Several factors have contributed:
The prices of oil and other exports have remained high, while the price of our imports have been low. High oil prices have led to increased activity on the Norwegian Continental Shelf has provided growth in industries that supply oljesektoren.Husholdningenes consumption and investment are pushed up by strong growth in revenues and borrowing surge supported by low interest rates. House prices have risen rapidly. Increased use of oil revenues in the national budget and big borrowing in local government has also lifted economic activity.
The good growth has meant that unemployment in Norway has remained low – at less than a third of the level in Europe.
The counterpart to the high activity and low unemployment is that the cost since the millennium has risen 30 percent more with us than with our trading partners. The situation has become more difficult for businesses that are fighting hard against international competition. The high cost makes it difficult to reap the fruits of economic development has been a little better in the countries around us.
Many companies have turned towards the oil sector. But downwind oil sector has given Norwegian economy now appears to be slowing. Information from companies indicates that oil investment will fall next year. As costs have been driven up, besides the oil companies increasingly moved behalf of Norway. Many have been notified that the company they work for, must downsize. The development of the Johan Sverdrup and other developments can contribute to that activity increases slightly after 2015, we must still prepare for the activity on the shelf over time will be lower. The decline in oil prices in recent months underscores this. Eventually, many of the companies that currently provide this sector, to find new markets or to switch production to other goods and services.
High productivity growth and adaptability go hand in hand. Therefore, it is serious that productivity growth has fallen back from 2006 Some of the weaker growth must be viewed in the context of the business cycle, but not all. Conditions of more permanent nature also seems to have helped. Investments in companies on the mainland have been low for several years. Meanwhile, the service sector with low productivity grew by labor from the new EU countries.
Since 2004, two of the three new employees come from immigration. Immigration has strengthened private sector’s ability to produce, but also increased pressure on infrastructure and public services, from homes via transport and municipal services to the legal sector. The experience of Ireland, Iceland and Spain show that such labor is cyclical and can quickly turn. Something similar could happen with us. Nevertheless, it is uncertain whether migrant workers with rights in the Norwegian social security system will return to their home country.
The strong revenue growth in the new millennium and low interest rates have contributed to the debt of households and municipalities reached high levels. Debt continues to grow faster than revenue. Along with high house prices constitutes a risk to financial stability. Higher equity in banks reduce this risk.
The growth of the Norwegian mainland economy in 2015 is estimated to be around 2 per cent. This is broadly in line with last year and projections for this year, but slightly lower than the average for the last four decades. Employment growth remains high, and unemployment is expected to remain low. There is little spare capacity in parts of the Norwegian labor market.
Population aging will slow economic growth in the years ahead. The same can be productivity gains do if the weak trend in recent years continues. The Government will facilitate stable and favorable environment for the oil and gas industry. We must be prepared for lower activity on the NCS will ask our ability to adapt to the test.
President
Norwegian economy must be well prepared to lower activity in the oil business. Then productivity growth again. It is a central objective of the Government’s economic policy.
The Government’s strategy for achieving this is growth-enhancing tax cuts that will make it more profitable to work and invest, a boost for knowledge, research and innovation and investment in infrastructure . We took significant steps already in the budget for this year. We continue in the proposed budget for next year.
These three areas – tax, knowledge and infrastructure – are precisely the three growth-enhancing areas such as overall financial committee believed that the increased use of oil revenues should be directed to when the guidelines were introduced in 2001 this government follows this up to a greater extent than the previous government.
The government’s proposed budget provides an oil spending equivalent to 3 percent of assets in the pension fund. The budget helps to increase demand in the mainland from this year to next year by half a percent, the same as we envisaged for this year in addition proposition. At the same time we turn a greater share of oil spending over investment and growth-enhancing measures such as tax cuts, knowledge, innovation and infrastructure. Our budget proposals contribute to economic stability – both in the short and long term – and to facilitate further growth.
assets in the pension fund has increased very rapidly in recent years. The increase was particularly marked in 2013, partly because the krone depreciated. Higher fund capital implies that the expected fund returns have increased. This has raised the so-called 4 per cent path significantly.
The strong growth in pension fund gives Norway opportunities few other countries, but has also made the management of fiscal policy more difficult. There is a gap to 4 per cent path, and the level can change a lot from one year to the next. The Government will therefore appoint a committee of experts to consider how the guidelines should be practiced in such a situation, and the need for additional guidelines. The committee will also consider how the framework of policies increasingly take into account the need to promote the growth potential of the mainland economy.
In a comprehensive budget process where different measures weighed against each other, there is a need for predictable funding of investment, so that they can be completed in a satisfactory manner. Therefore, the government in line with Sundvolden platform also appoint a committee to consider the need for multi-year budgets in selected areas and a clearer distinction between the costs of investment and operating budget.
Oil Money consumption in 2015 will equal 164 billion, or nearly 32 000 per capita. Every ninth dollar spent through government budgets, obtained now from the pension fund. Although the use of oil revenues provide a welcome additional contributions determined leeway in the budget primarily by tax revenue from households and businesses in the mainland economy.
President
The expenditure in public budgets equivalent to almost six ten crowns each year is created in the mainland economy. State and local government funds should be managed carefully to ensure citizens the best possible performance, and in a way that shows respect for taxpayers’ money. Government will renew, simplify and improve the public. Reforms in the public sector will help improve services to citizens, greater choice and the most efficient use of community resources.
A successful municipalities form will provide excellent and more equitable services to citizens, a comprehensive and coordinated community development and strengthen local democracy. Sustainable and financially robust municipalities will facilitate a more efficient use of resources. Bigger and more efficient communities that are better adapted to natural living and labor market regions will enhance the growth potential of the economy. It will also reduce the costs of managing and remove unnecessary bureaucracy.
Structural reforms in tax administration, police and higher education is also important to achieve a more efficient public sector. The goal is better tax administration, larger police force and higher education quality.
Politics is not about giving a little more of everything. It’s about prioritizing what is most important. The Government therefore proposes a reform to reduce bureaucracy and make more efficient use of public funds. It will allow to reduce taxes and to strengthen key areas such as knowledge, police, health and care. As a permanent arrangement the government will propose efficiency and reduced bureaucracy equivalent to 0.5 percent of operating records in the state every year. Although this is only fifty cents per hundred kroner is equivalent to 1.4 billion for 2015, Sweden and Denmark have similar arrangements, and the OECD has recommended Norway to go in this direction. This reform means that we gradually reduce bureaucracy. The efficiency of the public sector increases. The released funds that can be used for priority initiatives that make Norway better equipped to tackle the future and to better services for citizens.
President, the bureaucratisation of our society has been going on long enough. I am therefore proud to add this proposal to the Storting on behalf of the government.
The digitization of the public sector will continue. Altinn Expansion of services. New electronic registration system is also in the works from 2016, with 1.5 million official registrations annually, this is one of the largest government services have not yet been fully digitized. Business communities are reaping the benefits of the various services has become digital. Since the Register was established in 1997 now uses the business 40 percent fewer FTEs for statutory submission of information to the management. The government wants a further decline through more digitization, and fewer and simpler forms.
President
Better infrastructure is one of the Government’s main priorities, and a cornerstone of a modern regional policy. The budget for next year we are stepping up what we started this year. We must prioritize better and execute projects more effectively. It will increase the economic profitability in the transport sector. Effective communication will strengthen Norway’s competitiveness, facilitate well-functioning labor markets and create an easier life for residents.
Through a strong focus on infrastructure, we solve the challenges of today and build the country for the future. Our companies will get faster with their goods, and most people come home safely to their loved ones.
The government will increase funding for the construction of roads and public transport more than was envisaged in the National Transport Plan. We propose an allocation for transport of about 55 billion, which is 5 billion more than last year’s budget. For the road sector, the increase is 12.4 percent full. It comes on top of that we have increased funding for transport for the current year by 1.7 billion compared with the Stoltenberg government’s proposals. Government proposes 40 billion new capital infrastructure fund. The fund will thus be a total of 70 billion. The government is thus well ahead of schedule in order to increase the fund to 100 billion over four years. It provides more predictable financing of transport.
We will also take better care of existing roads and railway lines. We propose more to operation and maintenance. For the first time in decades the maintenance backlog on roads be reduced.
County roads get a significant boost, both through increased funding and an increase in the borrowing limit in the interest compensation scheme to 3 billion. In addition, we focus on avalanche and tunnel safety.
With this budget proposal is the better offer on Trønder path and Sørlandsbanen, full progress on the Follo Line and planning further expansion of intercity routes.
Government To create a development company for roads during 2015, the Company intends to develop more integrated than today, provide more efficient use of resources and greater emphasis on projects that are most profitable for society. It will be easier, cheaper and better road building.
The Government has identified three road projects for which we shall consider implementing development through the use of public-private partnership (PPP). The current projects are Harstad-Langvassbukt in Nordland and Troms, Ommangsvollen-Grundset in Hedmark and Sotra Association of Hordaland.
The collection of tolls should be smarter. The goal is that more of the money being paid the toll, go to the projects and less to pay for the financing of loans and administration. The Government is therefore underway to reform the toll system. As Parliament is already familiar with, several projects had reduced toll collection.
The Government will also provide rail sector a more commercial organization and clearer goals.
President
The government has put down a green tax commission to propose a green tax shift. The goal is to achieve both lower greenhouse gas emissions, improving the environment and sound economic development. In the budget we propose initiatives both nationally and internationally, by stimulating the Norwegian wind power production, increase investment in climate technology and preservation of the rainforest. In addition, we propose to extend Enova scheme for energy efficiency support to private households. We aim that the scheme will later become a deduction in the tax scheme with Enova as approving authority.
Climate change is global and are best solved globally. Norway should be a driving force in efforts to put an international price on CO2 and establish effective functioning international carbon markets. Since the costs of reducing emissions vary widely between countries, the international carbon markets help to reduce emissions where it costs the least. It is essential to achieve sufficient reductions in emissions.
President
safety is important for the fundamental freedom for most people. The individual should be able to feel safe there and in his own home. Everyday crime must be combated. Society must respond clearly on offense and take the threat from organized crime seriously. Through a modern and effective police, the Government will strengthen the preparedness and the operational capacity to fight crime.
The Government therefore proposes to strengthen law enforcement and emergency response significantly. It is possible for graduates from the Police Academy to get a job in the police. This will contribute to a more operational and visible neighborhood police capacity to prevent, investigate and prosecute criminal acts. There will be employed more prosecuting attorneys, staff in the higher prosecutors should be increased, and the establishment of several positions in the courts. Overall, the measures contribute to greater capacity and better balance throughout the criminal process.
When the police, prosecutors and courts become more efficient, while incarcerated capacity must be sufficiently large. We will expand this capacity and establish new closed prison places in Kongsvinger, Hustad, Bergen and Bodø. To improve children and young people under detention conditions, we propose to establish a new youth unit in eastern Norway. The government will also cooperate with the Netherlands on a temporary lease of prison capacity. Offenders should not go free because of the lack of atonement capacity.
Persons without legal residence in Norway will quickly out of the country. Therefore, we propose to increase the number of forced returns and assisted returns, expand police Immigration Detention Centre on Trandum and put into operation a new departure center at Oslo Airport. Individuals with legal residence in Norway to be settled faster and better integrated in the Norwegian society.
The Government is planning a reform of the police to get more police force out of resources. Subsidies for reforms in the police increased by 150 million. Respectively.
The Government will ensure that the country is prepared to deal with future crises. The response time for emergency helicopters at Rygge and Bardufoss are reduced, allowing faster helicopters can assist police when it needs it.
The threats against Norway is sharpened. The Government therefore proposes to increase the capacity of PST and bodyguard service. Planning and design of a new emergency center for police national resources continues in 2015 proposed funding to develop Nødnett so that the whole country is covered.
President
Safety for help and care is a cornerstone of our welfare society. There is a public responsibility to provide good medical care to all.
One of the things that concern me greatly, is meeting with people who have fallen off. People who struggle with substance abuse and mental disorders. Here, the community made a very poor job at all for many years. This is about people who are full of hope, dreams, and not the least resources that society needs. To meet these people and look them in the eyes, or talking to desperate parents and relatives, makes an impression. I am therefore pleased that we in this budget proposes a significant investment in just substance abuse and psychiatry. We have no one to lose, and the road to a good enough offer for these people is long, but it should be done, and we will begin next year.
Long waiting times and bad care services can exacerbate disease and cause Some drop out of the labor market. Through increased funding, clear priorities and solutions shows that the government invests in the healthcare sector. It’s about making health care better. Patients and elderly people with care needs can be confident that the help comes quickly on the day the need arises.
Many good in Norwegian health care. There are good results in a number of areas. Competent employees contribute to good quality. Meanwhile needed renewal. Better organization, efficiency and communication needed for increased resources will also give better results. The Government is now a large part of the sector. In 2015 starts the introduction of free treatment choices. The reform will reduce waiting times, increase freedom of choice for patients and help ensure that the public hospitals become more efficient.
The government does not want patients to wait unnecessarily long for treatment. We therefore propose over 2 billion in increased funding to hospitals so that more people can be treated. Compared with previous years, this is a high growth. Growth involves treatment in general medicine, mental health, substance abuse and rehabilitation. In addition, the Government proposes to provide loans for hospital construction in Tønsberg and further development of new child and youth center at Haukeland University Hospital.
The government will improve services for addicts and people with mental disorders. The hospitals receive greater funding, and health regions have been asked to prioritize these groups. Many of the offers to people with addictions and mental illness is provided in municipalities. Government forces therefore municipal finances and facilitates better municipal services. Of the growth in municipalities exempt income are a total of 400 million reasons to focus on substance abuse, mental health, health clinics and school health. Government takes prevention seriously and facilitates people to get good help before small problems grow big.
The Government wants more older people to live longer at home. They can live active and independent lives with customized services. Government to facilitate the build out several places to dagaktivitetstilbud for dementia and multiple care spaces. The Government also proposes funding to study a pilot scheme with state funding of elderly care and funding for the development of an overall health register for the municipal healthcare system.
Health rescues ever more lives, but we also have a responsibility to give people the ability to cope with life and to be active after treatment. Strengthening rehabilitation services will provide more opportunities to participate in society and in the workplace. Government will better ensure that disabled people can participate in work and daily life. We suggest that users with large needs receive an entitlement to help with personal assistance.
Government forces sports and culture. Ramp-up to new distribution formula for Norsk Tipping completed. The state will no longer receive a share of the profits from the Norwegian Tipping. Instead, it is more to sports and culture. In sports, this will provide increased allocations outside the state budget at 332 million. Kroner compared to this year, an increase of 18 percent. This will enhance recreational sports throughout the country.
There will be no increase in NRK license from this year to next year. NRK’s economic situation has in recent years been considerably improved with increases in the license fee and by the number of license payers have increased. The media industry is characterized by rapid and extensive changes. The requirements for efficiency in public administration should also apply to NRK.
President
The government will raise the competitiveness of businesses in the country. We will facilitate productivity growth may recover from the low levels in recent years. Increased competitiveness and productivity will create viable jobs and help secure the financing of the welfare system.
After a few months of work, the government set down a Productivity Commission. The Commission will submit its first report in early February. We look forward to this report and will study carefully the advice we get. In many areas we have already put into action, and the new proposed budget for 2015.
Tax and duties are an important part of the government’s work for a more productive economy. Taxes make up to 1 300 billion to finance extensive public services and welfare programs. The tax system has a lot to say about how people and Norwegian businesses use resources. The Government will make the tax system simpler and more growth-enhancing. It should pay more to work, save and invest, while most people will get to keep more of their own money.
A tax policy that emphasizes the efficient use of resources, will have good dynamic effects and provide greater economic growth. This will help ensure that tax increases. In 2014, the government reduced the income tax for everyone from 28 to 27 percent and simultaneously took the first step in winding down the wealth tax. This is good, growth-enhancing tax cuts.
Also in the 2015 budget, the Government proposes significant cuts that could contribute to higher economic growth. We propose accrued tax facilitate the further 8.3 billion. There are reductions in the taxation of income for large groups, and we reduce many special taxes.
The Government believes that the capital tax is still too high. Today’s wealth makes it less profitable to save and are detrimental to the private Norwegian ownership. A number of small and medium enterprises conveys that lower capital tax is crucial if they are to develop jobs and invest in their business.
The Government proposes 280,000 seniors receive reduced property tax.
The Government proposes to reduce the capital tax by almost a third. We will reduce the rate to 0.75 percent. The personal allowance increased to 1.2 million, and 2.4 million for married couples. The proposal makes it more profitable to save, can make it easier to finance investments and can have a positive effect on entrepreneurship. This is good news for businesses with projects that are difficult to find funding to the ordinary capital. Easing the wealth tax is about having solidarity with Norwegian jobs.
At the same time reduced the valuation discount for commercial and some secondary housing to 20 percent. It will reduce the tax favoring investment in such property rather than private equities and bank deposits. It can increase the overall return of savings in Norway. People will still be able to own one secondary residence at current valuation discount of 40 percent. The valuation of the primary residence and holiday home are also not changed. Frequently homeowners will therefore not be affected by increased assessment values, but only a few cuts as a result of reduced rate and increased basic allowance.
Government proposes lower tax revenue for broad groups of the population. It granted relief for at least a deduction for wages, benefits and pensions totaling 1 billion. The contribution of wages, social security and self-employment decreases, and the threshold in the top tax increases. It makes work more profitable. Total relief in the top tax and social security contributions account for over two billion. 37,000 fewer have to pay surtax in 2015, the Government will complete the phasing out of tax class 2 for married couples in 2015 will motivate work, promote integration and equality and lead to married couples and cohabiting treated more equally. Students and others with low income will enjoy the free card limit increased to 50 000.
The new disability insurance scheme, which was passed by Parliament in 2011, to be introduced from 2015, will be taxed as earned income. It then becomes easier and more straightforward to combine work and disability. For the transition will not be too abrupt, we propose a transitional arrangement for disability pensioners with interest payments.
Government proposes cuts in taxes, duties and fees totaling NOK 1.2 billion. It is given significant cuts in taxes on vehicles. Re-registration fee is reduced by over a third. Weight annual fee for heavy vehicles more than halved to strengthen the transport industry’s competitiveness. In addition, removing the annual fee for campers, and even the fee for motorcycles and snowmobiles reduced by 30 percent.
The VAT is simplified. Turnover limit to be subject to VAT increased from 50 000 to 150 000. It reduces the administrative burden for many small businesses. We also propose to increase the limit for tax-free consignments from abroad, often called e-commerce, from 200 to 500. Meanwhile include freight and insurance costs limit.
