NOK 6.8 billion more to the municipal sector

“The municipalities will have NOK 400 billion available in 2013, more than NOK 300 billion of which are not earmarked. This will provide citizens with even more safe and sound day-to-day services,” says Minister Liv Signe Navarsete.

The Government has proposed that the municipalities be given a real income growth of NOK 6.8 billion in 2013. NOK 5 billion of this will not be earmarked. The growth in freely disposable income is intended to cover e.g. the higher costs for the municipalities as a result of the growing population.

"The Government has a high degree of confidence in the municipalities, which is why we are raising their freely disposable income by NOK 5 billion in 2013. At the same time, we must remember that Norway’s economic success is not preordained. The uncertainty in the world economy and the Eurozone has not diminished, requiring the municipalities to husband their resources and prepare for harder times,” says Navarsete.

This is the first time the municipalities’ income exceeds NOK 400 billion.

“Since the red-green Government came to power, local welfare has been one of our most important focus areas. We have reversed a long-standing trend of municipal poverty, allowing ample development of local communities. Year by year, we have ensured more teachers, nurses and other providers of good day-to-day welfare services,» says Navarsete.

The Government has facilitated particular reinforcement of several municipal service areas. In addition to the growth in freely disposable income, the Government proposals include higher allocations to:

• Nominal continuation of maximum day-care prices
• Raising the minimum subsidy for non-municipal day-care centres
• Municipal child welfare services
• Culture school services in after-school care
• Optional school subjects for age groups 13-15
• Interest rate compensation scheme for construction and upgrades of school and swimming pool facilities
• Day-care services for people with dementia
• Investment subsidies for nursing homes and assisted living homes
• School bus safety measures
• Award scheme for improved public transport and less car traffic in city areas
• Interest rate compensation scheme for transport measures in the counties (road and public transport investments)

The details concerning these programmes and schemes can be found under the budgets of the various responsible ministries.