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How the changes to Norway’s 2024 state budget will affect you

The Norwegian government has agreed a deal for the 2024 state budget with the Socialist Left Party, which will see more money for families, students and healthcare.

Published: 4 December 2023 12:23 CET
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During the budget negotiations, the parties came together to allocate over 22 billion kroner for various initiatives in order to reach an agreement that worked for all parties involved. Photo by Matthew Whall on Unsplash

The Norwegian government has reached an agreement with the left-wing Socialist Left Party (SV) on the 2024 state budget. The negotiations have led to a number of policy tweaks and changes.

The centre-left Labour Party (AP), and the centrist Centre Party (SP) are a minority governemnt and rely on the Socialist Left Party to form a parlaimentary majority for key policies. 

With a focus on healthcare, education, banking transparency, and environmental initiatives, the budget revisions are expected to impact the lives of people in Norway in various ways.

READ ALSO: Everything that changes in Norway in 2024

Child benefit increase and expanded after-school programs

The budget agreement between the government and the Socialist Left Party included an increase of 2,400 kroner per year in child benefits for children over the age of six, compared to the initial proposals.

Furthermore, the budget agreement includes provisions for free half-day placements in after-school programs for 3rd graders.

An allocation of 880 million kroner in 2024 has been made to fund this initiative.

The Socialist Left Party leader, Kirsti Bergstø, emphasised the importance of this change, stating, “When more than one in ten children grow up in poverty, and the financial crisis hits families with children hard, it was important for us to ensure that we help even more people even more.”

Healthcare user fee ceiling increased – and health investments in the north

Starting in 2024, the healthcare user fee ceiling will rise to 3,165 kroner. The 125-kroner hike in the ceiling represents a 4.1 percent increase, surpassing the projected 3.8 percent price growth for the year.

Additionally, user fees for services such as doctor visits, psychological consultations, and physiotherapy sessions will see a 4.35 percent increase from next year.

The budget will also include a grant of 40 million kroner for the Northern Norway Regional Health Authority (Helse Nord), aimed at boosting the healthcare sector in the north of Norway. 

Boost in student aid, banking transparency initiative, and green initiatives

The Norwegian Student Organization (NSO) has reason to celebrate as student aid is set to increase by 10 percent in 2024. This translates to an additional 14,000 kroner per year for students.

NSO’s leader, Oline Sæther, expressed appreciation, stating that Norwegian students’ concerns have been heard.

At the same time, the three budget partners (Labour, Centre Party and Socialist Left Party) have introduced new measures in the budget agreement to enhance transparency in the banking sector.

By July 1st, 2024, banks will be required to report average mortgage interest rates and disclose the data influencing loan pricing decisions on finansportalen.no.

Banks will also need to reveal the geographical areas where they offer loans. Furthermore, an investigation will be launched to explore how the Financial Supervisory Authority of Norway (Finanstilsynet) can strengthen consumers’ rights in financial markets, potentially consolidating consumer protection efforts under the said authority.

Approximately 10 billion kroner has also been allocated to climate, nature preservation, and related efforts.

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POLITICS

Everything we know so far about Norway’s revised state budget

The Local has rounded up all the important proposals already revealed to be in Norway's revised budget for 2024, from more money for health and defence to a reversed cut to private schools.

Published: 13 May 2024 12:13 CEST
Everything we know so far about Norway’s revised state budget

Money to reduce hospital waiting times 

Some 2 billion kroner will be spent on trying to reduce waiting times in hospitals, health minister Jan Christian Vestre revealed at a press conference on Monday. 

The money will be spent on long- and short-term measures to combat waiting times in the health sector. 

“The welfare state must be our very best health insurance, and then regardless of whether it is in a city or a village, north or south or east or west, people must be confident that our health services are good,” Vestre said. 

Norway to increase defence spending 

The Norwegian Armed Forces will receive around 7 billion kroner more in defence spending as part of the revised national budget.

Over the past few months, the government has said that defence would be an increased priority. The spending will help Norway achieve the “NATO two percent target”. 

The two percent refers to member countries allocating at least two percent of their GDP to defence spending. 

Of the extra money, 2 billion would be spent on increasing immediate operational capability, while 5 billion would be spent on a long-term defence plan. 

Support for Ukraine will be increased

An additional 7 billion kroner will be given to Ukraine. Of this, 6 billion kroner will be increased military support while 1 billion kroner will be distributed as civilian aid through the Nansen programme.

Norway eyes fourfold increase in aid to Gaza

The Norwegian Broadcasting Corporation (NRK) reports that the government has proposed significantly increasing its humanitarian aid to Gaza, raising the allocation from 250 million to 1 billion kroner.

Development minister Anne Beathe Tvinnereim stated that this increase is intended to provide life-saving emergency aid, including food, water, fuel, and medicines.

Private and international school cuts to be reversed

Norway’s government has reversed the proposed cuts to around 150 private schools offering both primary and secondary school education.

Private schools previously told The Local that the initial cuts threatened their existence. 

Since then, the government has said a new model would be adopted. Private and international schools in Norway will now receive 484 million kroner compared to the 515 million kroner the government planned to save by cutting subsidies. 

The reversal has been met with a mixed reception by some schools. 

READ ALSO: Norway’s government reverses cuts to private and international schools

More money for local authorities

A couple of measures have been announced to try to funnel money into the country’s municipalities. 

Firstly, the government wants to move tax money from rich local authorities to poorer ones. 

Furthermore, local authorities that refuse to merge with their neighbours will also benefit from increased funding. This hasn’t been the case in recent years, and authorities that refused mergers have claimed they have missed out financially as a result.

However, while 215 areas will benefit from the proposed change, 141 municipalities may end up worse off.

Police to receive money to fight gang crime

Police across the country will benefit from increased funding to combat gang crime, while customs officials will be allocated more money to stop the smuggling of drugs into Norway. 

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