Municipal accounts, 2015

Municipalities’ pension obligations have seen a relatively strong increase over the last 10 years. The increase from 2014 to 2015 was about 2 per cent, which is small compared with the increase in the period from 2005 to 2014. The yearly increase in pension obligations for this period was between 6 and 16 per cent.

The relatively small increase from 2014 to 2015 led to a decrease in the pension obligations as a share of gross operating revenues from 2014 to 2015, see figure 1. Notwithstanding, the pension obligations amounted to as much as 117 per cent of the total gross operating revenues in 2015. This is a remarkable amount compared with earlier years, such as 2010 when the pension obligations amounted to 110 per cent of the total gross operating revenues, and 2005 when they were “only” 91 per cent of the total gross operating revenues.

Solid operating surplus for the municipalities

Municipalities’ net operating surplus increased by NOK 7 billion from 2014 to 2015. This corresponds to 3.0 per cent of the gross operating revenues, while in 2014 the result was 1.3 per cent of the gross operating revenues. The recommended level over time should be at least 1.75 per cent. This means that the net operating surplus for municipalities in 2015 was very solid.

Gross operating revenues increased by about NOK 17 billion or 4.5 per cent from 2014 to 2015, mainly because of increased taxation revenues and government subsidies.

Municipalities’ gross operating expenditures increased by almost NOK 10 billion, or 2.6 per cent from 2014 to 2015. This is a relatively small increase compared with the increase in the period 2012-2014. The yearly increase in expenditures for this period was between 4 and 6 per cent.

Decrease in operating expenditures for health and care services

The relatively small increase in the municipalities’ gross operating expenditures from 2014 to 2015 reflects the development of the operating expenditures for the service areas, see figure 2.

Health and care services, primary and lower secondary education and kindergarten represent the main service areas related to gross operating expenditures. Gross operating expenditures in these three areas amounted to 30, 19 and 12 per cent of the municipalities’ total gross operating expenditures in 2015 respectively.

The gross operating expenditures of health and care services decreased 3 per cent from 2014 to 2015, mainly due to the phasing out of a co-funding scheme for specialist health care services.

The gross operating expenditures of primary and lower secondary education continue to increase and increased by 3 per cent from 2014 to 2015, see figure 2. Gross operating expenditures of kindergartens were about the same level in 2015 as in 2014.

Increase in investments and debt, reduced deficit

Municipalities’ gross investment expenditures increased by NOK 6 billion, or about 12 per cent from 2014 to 2015. This increase is roughly in line with the development over the last three years, when gross investment expenditures increased yearly by between 10 and 13 per cent.

Municipalities’ long-term debts excluding pension obligations amounted to almost NOK 392 billion in 2015. This corresponds to an increase of 8 per cent from 2014, and is about the same as the increase from 2013 to 2014.

Long-term debts remain at a high level, and amounted to 98 per cent of the total gross operating revenues in 2015. 

The deficit before loans and allocations amounted to NOK 13 billion in 2015, which is a reduction compared to the NOK 20 billion in 2014. This improvement in the municipalities’ economy in 2015 was mainly due to the improved gross operating surplus in 2015.