Public purchases slightly over 15 per cent of GDP

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Public purchases of goods and services amounted to about NOK 480 billion in 2015. This is an increase of about NOK 19 billion compared to 2014. This is the highest in the last 5 years.

Written by: Francis Kwamena Acquah

Purchases made by the general government increased by NOK 11.4 billion or 6 per cent. Purchases in general government enterprises decreased by NOK 1.4 billion or approximately 3 per cent from 2014 to 2015. Whilst gross fixed capital formation increased in the general government, there was however a decrease in general government enterprises.

Increased military investments

The central government purchases were almost 4 per cent, which was a moderate increase compared to last year. There could be different reasons why the total growth was below 6 per cent. In the central government there was relatively homogeneous growth in most categories, and the increase from 2014 to 2015 was somewhat lower than 6 per cent. The exception is found in the military, where the delivery of two new F35 fighters pushed the growth in military investments up to roughly 13 per cent.

More than half of the central government investment was made in the transport sector, mostly in the construction of roads and railways. This sector has had the strongest growth in investment in recent years. There was a 6 per cent moderate increase from 2014 to 2015 compared to the previous year.

Strong growth in local government

The purchases made by the local government were drawn up by a strong growth in investments. Investments in the local government grew by about 12 per cent, or nearly NOK 6 billion from 2014 to 2015. The growth was due to the increased investment in school buildings, social housing and water and sewerage.

Decrease in oil sector

Purchases of goods and services in the oil sector increased from 2014 to 2015. Even though the goods and services purchases in the oil sector have grown compared to last year they are still not at the same level as in 2012 and 2013. Gross fixed capital formation in the oil sector experienced a decline of about 18 per cent from 2014 to 2015, which was equivalent to NOK 6.4 billion. The state-owned enterprises excluding the oil sector had an increase of about NOK 408 million in the purchase of goods and services from 2014 to 2015, or over 8 per cent. Government and county enterprises decreased by NOK 896 million in the purchase of goods and services from 2014 to 2015, or a decline of over 16 per cent.

Public purchases

Public purchasing covers expenditure on goods and services and on gross fixed capital formation in central and local government, and similar purchases undertaken by central government and municipal quasi corporations. Purchases made by the public corporations are excluded in the statistics.

Gross fixed capital formation for (SDFI)

In this publication, the principle of how gross fixed capital formation for the State's Direct Financial Interest (SDFI) is measured has changed; from having previously used accounting principle to cash basis. The table figures have been amended dating back to 2009 for this company in line with the new current principle.

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