NOK 5.7 billion more for the local authorities

The Government proposes that the local authorities receive a NOK 5.7 billion increase in income next year.

“We will enable the local authorities to extend welfare services in line with population trends.  In this way we shall ensure that the local authorities are well prepared to extend school, kindergarten and nursing and care services to those who need them,” says Minister of Local Government and Regional Development Liv Signe Navarsete.

“There will also be specific initiatives in child welfare, renovation of schools, swimming pools, churches and county roads, investment support for nursing home places and residential care and money for interaction and measures to combat substance abuse. The local authorities will receive more money than was proposed in the local government proposition,” says Navarsete.

Of the NOK 5.7 billion increase, NOK 2.75 billion will be as unrestricted income. This will cover the added expenses the local authorities have as a result of population trends.

“A strong and healthy municipal economy is a prerequisite for good welfare programmes throughout the country. The Government has already given the local authorities a considerable economic boost in this period. Many European countries are now cutting their public budgets. I am delighted that in spite of more difficult economic times we can continue our initiatives for good welfare services,” says Navarsete.

She points out that there has been a major increase in employment in the local authorities under this government.

“Over the period from first half 2005 to first half 2010, Norwegian local authorities have employed about 70,000 more people. More willing heads and hands means better welfare services for the population,” says Navarsete.

The Government is also following up the proposal for a new income system for the local authorities that was presented in the local government proposition.

“The new income system means a fairer distribution of income between the local authorities,” says the minister.

• The fiscal budget
• Press releases with figures for each county.

For more information, contact the press centre at the Ministry of Local Government and Regional Development on tel. +47 22 24 25 00.