Norwegian government proposes extra NOK 7.3 billion of support to municipalities

Nikolai AstrupPhoto: Jil Yngland / NTB

Norwegian Minister of Local Government Nikolai Astrup (H) is allocating an extra NOK 7.3 billion to the municipalities in the 2021 budget to cover extraordinary corona expenses in the first half of the year.

A working group with representatives from the Norwegian Association of Local and Regional Authorities (KS) and several ministries recently presented an interim report on the municipalities’ finances in the wake of the pandemic.

“The proposals are based on the working group’s calculations and will cover additional expenses and lower income related to the corona pandemic in the first half of 2021,” Astrup said at a press conference on Thursday.

The extra allocations to the municipalities will be formally presented in the form of a supplement to next year’s state budget on November 6.

Allocation breakdown

Out of the NOK 7.3 billion, NOK 5.9 billion will go to the municipalities.

Out of the NOK 5.9 billion, NOK 4.4 billion is earmarked as an increased population subsidy, while NOK 1.5 billion is distributed as discretionary funds.

The municipalities will also receive NOK 321 million from the framework grant for positions related to compliance with the rules for events, restaurants, and employees.

Furthermore, NOK 950 million will go to the county municipalities through increased discretionary subsidies to cover lost ticket revenues in public transport, reduced user payments in the dental health service, and additional upper secondary education expenses.

The government is also proposing a NOK 100 million allocation so that more people can use the adult right to upper secondary education.

© NTB Scanpix / #Norway Today

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