Decrease in government revenue

petroleumRig:Photo: Pixabay.com

The central government’s fiscal account for the first quarter of 2016 shows a decrease in revenue of NOK 15 billion. Expenditure has increased by NOK 5 billion.

The central government’s total revenue was NOK 308 billion in the first quarter. Total expenditure was almost as high as revenue, and the surplus before net transfers to the Government Pension Fund Global was less than NOK 500 million.

The decrease in total revenue is mainly due to reduced income from petroleum taxes and reduced surplus from the State’s Direct Financial Interest in petroleum activities (SDFI). Tax revenue from petroleum has been reduced by NOK 12 billion, leading to a decrease of almost 5 per cent in total tax revenue from the first quarter of last year. At the same time, net cash flow from the SDFI has been reduced by about NOK 8 billion.

The increase in expenditure is mainly due to higher operating costs. These expenses have grown by NOK 3.5 billion, to NOK 38 billion in the first quarter of this year. Wages and salaries account for NOK 19 billion of this sum and NOK 11 billion was spent on goods and services. Transfers, which account for about 80 per cent of total expenditure in the first quarter, have increased by 0.1 per cent since the first quarter of 2015.

The quarterly figures are subject to random fluctuations, and must be interpreted with caution.

 

Source: SSB / Norway Today

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