Central and local government purchasing totals NOK 206 billion in 1997

The public sector purchased NOK 206.3 billion worth of goods and services in 1997. This is an increase of NOK 20.2 billion or 10.9 per cent compared to 1996. General government increased its purchases by eight per cent, while public enterprise purchasing was up 15.5 per cent from 1996. Measured as a share of the gross domestic product (GDP), public purchases amounted to 19.0 percent compared to 18.2 per cent in 1996.

Public purchasing statistics include all general government, i.e. central, county and municipal (local) government, as well as state, county and municipal enterprises. Public limited companies and companies operating under special laws which compete in a commercial or industrial market are, however, not included in the figures.

Sharp increase in gross fixed capital formation

The increase in public purchasing has several reasons. Both intermediate consumption and social benefits in kind grew five per cent from 1996 to 1997. Gross fixed capital formation grew the most, at 14.6 per cent from 1996 to 1997. Gross fixed capital formation can be divided between central and local government. Local government in particular has contributed to the overall sharp growth in gross capital formation. From 1996 to 1997 gross capital formation in local government grew 31.1 per cent. One of the main reasons for this is the preparations for expanding the former nine-year primary and lower secondary school to a 10-year system by lowering the school age to six.

New Statistics
Public expenditure on purchases, 1997.
The statistics are published annually in the Weekly Bulletin of Statistics. For more information, contact: Thomas.Olsen@ssb.no, tel. +47 21 09 48 56, or Jon.Petter.Nossen@ssb.no, tel. +47 21 09 45 01.

Weekly Bulletin issue no. 43, 1998