Larger fiscal deficit
The central government’s fiscal account for Q3 2016 shows a decrease in total revenue of NOK 14.7 billion and an expenditure increase of NOK 20 billion.
|3rd quarter 2015||3rd quarter 2016||Change in per cent|
|A. TOTAL REVENUE||286 731||272 071||-5.1|
|Operating surplus extraction of petroleum||17 251||13 652||-20.9|
|Tax revenue||144 816||139 563||-3.6|
|Members' and employers' contribution to the National Insurance Scheme||96 092||98 716||2.7|
|Interest and dividends||15 257||7 634||-50.0|
|Other revenue||13 315||12 506||-6.1|
|B. TOTAL EXPENDITURE||270 616||290 991||7.5|
|Operating costs||37 347||40 025||7.2|
|Total fixed capital formation||17 527||19 305||10.1|
|Total transfers||215 742||231 661||7.4|
|C. SURPLUS BEFORE NET TRANSFERS TO THE GOVERNMENT PENSION FUND - GLOBAL||16 115||-18 920|
In the third quarter of 2016, the central government’s total revenue amounted to NOK 272 billion, which equals a reduction of 5.1 per cent compared to the same period last year. A corresponding comparison of total expenditure shows a 7.5 per cent increase, to NOK 291 billion. The fiscal account thus shows a deficit of NOK 19 billion. This is the second consecutive quarter in 2016 that the central government has recorded a deficit.
The reduction in the central government’s total revenue is largely explained by a decrease in revenue from the extraction of petroleum. Operating surplus from petroleum extraction has declined by NOK 3.6 billion compared to Q3 2015. Accumulated tax revenues stemming from oil extraction have been reduced by half from NOK 17.4 billion last year. Total revenue from taxes and fees has declined by NOK 5.3 billion, and interest and dividends have been reduced by NOK 7.6 billion.
The central government’s operating costs have increased by NOK 2.7 billion from last year. Wages and salaries, accounting for about half of these operating costs, have increased by 4.8 per cent. Total fixed capital formation has risen by 10 per cent.
Total transfers have increased by NOK 16 billion from NOK 216 billion last year. Pension benefits etc. under the National Insurance Scheme, which make up half of total transfers, have increased by 4 per cent. The item «Other transfers», accounting for a further 30 per cent of total transfers, has risen from NOK 59 billion by almost NOK 9 billion.
The quarterly figures are subject to random fluctuations, and must be interpreted with caution.
The proposed National Budget for fiscal year 2017 was submitted on 6 October 2016 to Stortinget. The budget shows a central government deficit of NOK 121 billion.