KEY POINTS: What the changes to the revised national budget mean for you
After weeks of negotiations, the government and Socialist Left Party have agreed upon a revised national budget which includes several significant changes. Here are the revisions which could affect you.
On Tuesday morning, the Norwegian government announced that it had agreed with the Socialist Left Party on the revised national budget.
Labour and the Centre Party, who are in a minority coalition, had been locked in talks with the Socialist Left Party, which the government relies on for parliamentary support, for a few weeks.
The agreement has led to a number of tweaks and changes to the national budget, some of which could have an impact on your day-to-day life in Norway.
More money for public transport
Half a billion kroner has been set aside for public transport. The extra 500 million kroner will be spent on ensuring routes aren’t cut and that transport is restructured.
Government support for public transport was set to end in July. When the cut was first announced, Ruter warned that it would axe routes from July 4th as passenger numbers had not yet returned to pre-pandemic levels. Lines in Oslo and Viken were also facing the chopping board.
Public transport firms have yet to announce whether the funding will be enough to prevent route cuts or reverse them entirely.
No fuel cuts
Despite record prices and Norway have some of the most expensive fuel in the world, there will be no cuts to petrol and diesel duty. Current prices are around 27 kroner per litre.
Last week, Finance Minister Trygve Slagsvold Vedum said that the government would look at its policy on fuel tax and duties in the autumn when it puts together its budget for 2023.
Electric cars under 500,000 kroner to remain VAT free
To ensure that electric cars remain an attractive proposition, EVs that cost less than 500,000 kroner will remain VAT free.
VAT exemption will remain on cars that cost less than 500,000 until 2025 at the earliest under the revised proposal.
However, cars that cost more than this will still be subject to VAT from the beginning of next year. Currently, all EV purchases are VAT exempt.
Social support increase
Social support will be increased from July. The government initially proposed raising social support by 1.3 percent. After negotiations, this will now rise to 3.4 percent.
Housing benefits will also be increased as temporary regulations introduced last year will be adopted permanently.
Highway projects face the axe
Several proposed highway projects could face the axe next year. The government and Socialist Left Party have agreed to scale down large motorway projects in its review of transport infrastructure up to 2023.
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On Tuesday morning, the Norwegian government announced that it had agreed with the Socialist Left Party on the revised national budget.
Labour and the Centre Party, who are in a minority coalition, had been locked in talks with the Socialist Left Party, which the government relies on for parliamentary support, for a few weeks.
The agreement has led to a number of tweaks and changes to the national budget, some of which could have an impact on your day-to-day life in Norway.
More money for public transport
Half a billion kroner has been set aside for public transport. The extra 500 million kroner will be spent on ensuring routes aren’t cut and that transport is restructured.
Government support for public transport was set to end in July. When the cut was first announced, Ruter warned that it would axe routes from July 4th as passenger numbers had not yet returned to pre-pandemic levels. Lines in Oslo and Viken were also facing the chopping board.
Public transport firms have yet to announce whether the funding will be enough to prevent route cuts or reverse them entirely.
No fuel cuts
Despite record prices and Norway have some of the most expensive fuel in the world, there will be no cuts to petrol and diesel duty. Current prices are around 27 kroner per litre.
Last week, Finance Minister Trygve Slagsvold Vedum said that the government would look at its policy on fuel tax and duties in the autumn when it puts together its budget for 2023.
Electric cars under 500,000 kroner to remain VAT free
To ensure that electric cars remain an attractive proposition, EVs that cost less than 500,000 kroner will remain VAT free.
VAT exemption will remain on cars that cost less than 500,000 until 2025 at the earliest under the revised proposal.
However, cars that cost more than this will still be subject to VAT from the beginning of next year. Currently, all EV purchases are VAT exempt.
Social support increase
Social support will be increased from July. The government initially proposed raising social support by 1.3 percent. After negotiations, this will now rise to 3.4 percent.
Housing benefits will also be increased as temporary regulations introduced last year will be adopted permanently.
Highway projects face the axe
Several proposed highway projects could face the axe next year. The government and Socialist Left Party have agreed to scale down large motorway projects in its review of transport infrastructure up to 2023.
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