Norway raises 2022 spending from wealth fund to $41 billion

view original post

General view of the hall during the opening of the Storting, Norway’s parliament, in Oslo, Norway October 11, 2021. NTB/Torstein Boe

Register now for FREE unlimited access to Reuters.com

OSLO, Jan 14 (Reuters) – The Norwegian government said on Friday it has raised its projected fiscal spending for 2022 as it seeks to compensate businesses affected by coronavirus lockdown measures and subsidise households hit by a surge in electricity prices.

The centre-left minority coalition now plans to spend 355.1 billion Norwegian crowns ($40.9 billion) from the country’s $1.4 trillion sovereign wealth fund, up from 322.4 billion originally planned. read more

Of the increased spending, 22.4 billion crowns comes from pandemic-related measures while 10.2 billion stems from the power price subsidy, the finance ministry said.

Register now for FREE unlimited access to Reuters.com

The government meanwhile cut its expectations for economic growth this year to 3.4% from 3.8% seen in October.

“It is 0.4 percentage points lower than assumed in the national budget, but still means that the activity in the Norwegian economy will be back on track already this spring,” the finance ministry said in a statement.

“Without powerful economic measures, the impact on the economy would have been greater,” it added.

($1 = 8.6826 Norwegian crowns)

Register now for FREE unlimited access to Reuters.com

Reporting by Terje Solsvik and Nora Buli, editing by Victoria Klesty

Our Standards: The Thomson Reuters Trust Principles.

Related Posts