Increase of more than NOK six billion for local governments in 2014

The Government proposes to allocate between NOK 6 and 6.5 billion in real income growth over the next year. “Every krone will help provide better services for citizens,” says Minister of Local Government Liv Signe Navarsete.

Between NOK 5 and 5.5 billion of these funds will not be earmarked. This means that the local governments (municipalities and county authorities) can prioritise the resources in an efficient manner in line with local needs. In other words, day-care for those who need it, dignified care for the elderly and good schools.

“Some local governments need more assisted living units, while others will prioritise a new school and more day-care centres. This is why we believe that municipal autonomy is so important; the local councils know the local needs,” says the Minister.

The income growth must be viewed e.g. in the context of population development. More citizens increases the need for local government services.

The county authorities will receive NOK 1 billion of the new non-earmarked income. Of this, NOK 500 million is linked to efforts to renew and upgrade county roads. This increase was signalled in the National Transport Plan 2014-23.

Between NOK 4 and 4.5 billion of the non-earmarked funds will go to municipalities. As follow-up of the Government’s Public Health Report, NOK 180 million of the new funds will be used to strengthen health centres and the school health service.

In April, the Government signed an agreement with the Norwegian Association of Local and Regional Authorities (KS) concerning settlement of refugees. In the 2014 National Budget, we will propose to increase the integration subsidy by NOK 250 million and the commitment quota for rental housing by NOK 66.7 million.

“This will improve the local governments’ framework conditions in settling refugees, and is in addition to the proposed NOK 33.3 million increase of the commitment quota in the revised National Budget,” says Navarsete.

• Local Government Proposition 2014 (norwegian)

The Ministry of Local Government and Regional Development’s media hotline: +47 22 24 25 00.