The municipalities will receive more income next year

The municipalities will receive between four and five billion kroner more in total income next year. “In spite of the tighter economic climate, the Government is prioritising more money to the municipalities to ensure good welfare services,” says Minister of Local Government and Regional Development Liv Signe Navarsete.

Between 2.5 and 3.0 billion kroner of the growth is in the form of unrestricted funding.

“The Government is concerned to make it possible for the municipalities to offer good, safe day nurseries, schools that give young people a sound basis for their whole lives and good nursing and care for the elderly,” says the minister.

The total financial reserves for the local government sector in 2011 allow for continued development of municipal services. The local government sector’s costs increase because of population growth and the changing composition of the population. These extra expenses will be covered by the overall growth in income.

The increased income for 2011 is on top of the increased income to the municipalities of 41 billion kroner that the red-green government has secured over the period 2006 to 2010.

With effect from next year, the Government will include the funding earmarked for day nurseries in the grant framework to the municipalities.

“This means that about 80 per cent of the municipalities’ income is unrestricted and only four per cent of the funding is earmarked. In this way we are strengthening local self-government by keeping the earmarked funding to a historically low level. This provides a good basis for local adaptation of welfare services and gives the municipalities more freedom to prioritise what they believe is most important for the local population,” says Navarsete.

The rest of the municipalities’ income is from local taxes, fees and charges.

• Local government proposition 2011.

For more information, call the Ministry of Local Government and Regional Development at +47  22 24 25 00