Local government, revenue and expenditure by type, 2010

Total revenue is estimated at almost NOK 358.5 billion; a rise of about 6 per cent compared to 2009. Tax income has grown by about 7 per cent, a growth rate which is above the last growth from 2008 to 2009. Current transfers is the second largest income factor, and the growth was about 7.5 per cent, which is substantially lower than the growth in 2009. This stems from the fact that the growth rate in 2009 was significantly affected by current transfers intended to lower the consequences of the financial crisis.

Total expenditure grew by approximately 6 per cent to NOK 363 billion in 2010. Wages and salaries, which represents more than one half of total expenditure, is estimated to NOK 194.5 billion in 2010 - a growth of slightly less than 5 per cent.

As has been the case in recent years, local government fixed capital formation is still growing at a high rate; with growth of more than 18 per cent in 2010. This growth is influenced by an administrative change, as the responsibility for a substantial distance of roads has been transferred from national authorities to county authorities. This has also influenced the consumption of fixed capital, which increased by more than 22 per cent in 2010. Other areas in which there were substantial investment costs in 2010 were in building institutions for the elderly, building sport halls, swimming halls and arenas, and the sewer system.

Local government interest payments declined in both 2009 and 2010. This reduction was despite the deficits of recent years, which have imposed debt on municipalities and counties. Low interest rates have played a role in lowering the interest payments. In 2008 the interest costs were also higher than they would normally be. The reason is that in 2008 there was a significant loss on deposits and shares, and this was consequently included in the interest costs.