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Key points: What to expect from Norway's state budget for 2024 

Frazer Norwell
Frazer Norwell - [email protected]
Key points: What to expect from Norway's state budget for 2024 
Later this week Norway will unveil its state budget for 2023. File photo: Jonas Gahr Støre, Prime Minister of Norway, speaks onstage at The New York Times Climate Forward Summit 2023 at The Times Center on September 21, 2023 in New York City. (Photo by Bennett Raglin / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

The Norwegian government will unveil its state budget for next year later this week. There are a number of proposals, such as defence spending, a tourist tax, and emission-cutting measures, which have already been leaked or made public. 

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Norway's state budget for 2024 will be unveiled by the government on Friday.

Before the official unveiling, a number of policy points have become public knowledge through the government or through leaks. 

Norway will increase its defence spending by 15 billion kroner in 2024, a 20 percent increase compared to 2023. 

"Russia's war of aggression in Europe is a very serious change in our security policy environment. Norway's insurance premium is membership in NATO, our relationship with close allies and the capacity in our own defence," Norwegian PM Jonas Gahr Støre told the Norwegian newspaper VG

Therefore, the defence budget for next year will be around 90.8 billion kroner. The government hopes this will meet the NATO country target of two percent of spending going on defence by member countries. 

Some 7.5 billion kroner of the budget will go to military support for Ukraine. Since the current government took over in 2021, the defence budget has increased by around \ 40 percent. 

The government has also previously announced a cut to kindergarten costs. From August next year, the maximum cost of a nursery place in Norway will be lowered to 2,000 kroner per month. This doesn't include the cost of food and other expenses. 

Health and care will also get a boost. An additional 300 million kroner will be allocated to try and create 1,500 new nursing home places. Total spending on nursing homes will therefore be 3 billion kroner. 

More money will be spent establishing more low-threshold mental health services. 

READ MORE: How to access mental healthcare in Norway

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Motorists can expect costs to increase from 2024 as the government will raise fuel taxes for petrol and diesel by 15 øre per litre. To offset this increased cost, the traffic insurance fee for fossil fuel cars will be reduced by 400 kroner per year. 

Increased spending on transport also features heavily in budget leaks. The government will construct a new stretch of the Oslofjord Tunnel. This project will cost 6.5 billion kroner.

A new tunnel will also be constructed on the E134 between Røldal and Seljestad in Ullensvang, western Norway. Some 4.9 billion kroner has been earmarked for the project. 

Furthermore, a proposed road project between Megården and Sommerset in Sørfold in Nordland, north Norway, will cost 4 billion kroner. 

Promises have also been made to the Socialist Left Party, which isn't a part of the government but offers parliamentary support on key policy issues. 

The government has previously committed to proposing a municipal and state tourist tax. 

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Local authorities in parts of Norway popular with foreign and domestic tourists often allocate a large chunk of local resources to maintain attractions. 

Money raised through a tourist tax would, in theory, allow local authorities to spend more on local services. 

Housing benefit changes are another area that the government will need to look at as part of its promises to the Socialist Left Party. A one-off fossil fuel tax on heavy vehicles has also been suggested. 

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