NOK 1.7 billion deficit for local government

Accounting figures for municipalities (local governments) and counties show that local government ended up with a deficit before loan transactions of about NOK 1.7 billion in 1997. This is, however, just over NOK 1.1 billion better than previous estimates, based on preliminary accounting figures for a sampling of municipalities.

Total (corrected) revenues of local government increased by NOK 10.6 billion to NOK 168.4 billion from 1996 to 1997, a growth rate of 6.7 per cent. The largest contributions to this growth in revenues come from higher tax revenues and increased transfers from central government. Overall tax revenues of municipalities and counties increased by NOK 4.4 billion.

Some of the increased tax revenues are inter alia a factor of higher employment and higher wages in 1997. The higher transfers from the state are inter alia the result of enlarging the former nine-year primary and lower secondary school to a 10-year system by lowering the school age to six. Fees and charges also increased by 9.1 per cent or NOK 2.3 billion.

NOK 6.6 billion in increased expenditure

The correct expenditure figures show a growth of 4.4 per cent or an increase of around NOK 6.6. billion. The growth in expenditures is mostly due to a NOK 6.1 billion increase in wages.

The health sector has had the greatest increase in wages. Wages in this sector have increased by nine per cent or NOK 3.2 billion. The education sector has seen a 5.1 per cent or NOK 1.5 billion increase in wages, with the basic school accounting for the largest growth. Some of the growth in wages is attributed to the addition of the extra grade.

Lower interest rates resulted in a 15.1 per cent decrease in interest costs for local government in 1997.

New Statistics
Local government. Revenue and expenditure, by type, 1997. Final figures.
The statistics are published annually in the Weekly Bulletin of Statistics. For more information, contact: Rune.Bye@ssb.no, tel. +47 21 09 45 14, or Camilla.B.Strand@ssb.no, tel. +47 21 09 47 18.

Weekly Bulletin issue no. 47, 1998