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92666
Increase in local government deficit
statistikk
2013-02-13T10:00:00.000Z
Public sector;Public sector
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offinnut, General government revenue and expenditure, central government, local government, taxes, duties, national insurance contributions, pension premiums, revenue by type (for example fines, fees, tolls), expenditure by type (for example disability pension, child benefit, subsidies), expenditure by function (for example health care, environmental protection, culture), public deficit, municipal accounts, municipal economy, municipal finances, net financial investments.Local government finances , General government , Central government finances , Public sector
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General government revenue and expenditure, 2012

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The statistics describe government revenue and expenditure. Together with financial assets and liabilities, they give a comprehensive overview of the sector’s finances.

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Increase in local government deficit

Preliminary figures for local government show an increase in the deficit from NOK 19 billion to NOK 23 billion.

Revenues are up 5.7 per cent compared to 2011. At the end of 2012, the total revenues for the local government amounted to NOK 410 billion. Taxes are a major source of income for the local government, with just under 40 per cent of the revenues. Government taxes on wealth and income to the municipalities and the county municipalities experienced a moderate growth compared to 2011, averaging 6.9 per cent and 8.4 per cent respectively. Grants from central government are estimated at NOK 187 billion; approximately 8 per cent more than in 2011.

Administration fees and charges account for about 12 per cent of the total revenues. Provisional accounts from the local government show administration fees and charges amounting to about NOK 50 billion; an increase of 5 per cent compared to 2011. 

Considerable increase in grants to central government

The total expenditure for local government is estimated at NOK 433 billion. This represents an increase of 6.5 per cent compared to 2011. Compensation of employees accounts for over 50 per cent of the total expenditure in 2012; NOK 227 of the NOK 433 billion. Compensation of employees also consists of costs related to pensions. The amounts included are early estimates and therefore uncertain. A substantial part of the compensation of employees is related to healthcare-related services.

About 18 per cent of total expenditure is directly related to the use of goods and services. This represents an estimate of approximately NOK 77 billion. The use of goods and services grew at a rate of about 3 per cent in 2012 as opposed to 4 per cent in 2011.

Grants to central government account for NOK 7 billion in total. Although they are small in size, they are estimated to be more than twice the amount reported in 2011. This is a considerable change, which is linked to the introduction of a nationwide reform in coordination within healthcare, as explained in more detail in the box below.

Gross investment in capital is estimated at NOK 52 billion; an increase of about 5 per cent compared to 2011. Investments rose in services related to road construction, cultural services and environmental protection. There were reductions in investment in areas such as education and social protection. Net acquisitions of non-financial assets are estimated at NOK 15 billion, which is about the same as in 2011.

The Coordination ReformOpen and readClose

The Coordination Reform is an incentive-based reform that was initiated in 2012. It has far-reaching goals of a more economically viable healthcare sector, with the aim of preventing illness rather than just repairing. The means of achieving this is by providing healthcare services closer to where people live. This is best achieved through better cooperation between the hospitals and the municipalities towards these goals. Municipalities have been given responsibility to a greater extent than before for taking care of their inhabitants through the reform. The reform is financed by transferring resources from the hospitals to the local authorities. For 2012, this amounts to approximately NOK 5 billion.

Data sources and uncertaintyOpen and readClose

The statistics are based on preliminary accounts for municipalities and county authorities. Considerable uncertainty is connected with some of the figures, for instance costs relating to pension, capital expenditure, property income and property expenditure. As in previous years, the figures may be revised when final figures are available. The 2012 figures must therefore be used with caution.