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11042
Considerable local government deficit
statistikk
2004-02-17T10:00:00.000Z
Public sector
en
komminnut, Local government, revenue and expenditure by type, municipal accounts, municipal economy, municipal finances, net financial investmentsLocal government finances , Public sector
false

Local government, revenue and expenditure by type, 2003

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Considerable local government deficit

Preliminary figures show that local government had a significant deficit before financial transactions in 2003. The deficit - a key indicator in assessing the state of local government finances - amounted to NOK 13 billion.

The 2003 deficit follows a surplus of NOK 7 billion in 2002. Revenues and expenditure in 2002 were, however, influenced by the takeover of responsibility for all Norwegian hospitals by the central government from 1 January 2002. If earmarked grants connected with hospital-debt are excluded, the data show a deficit of approximately NOK 14 billion in 2002.

Local government expenditure up 4 per cent

The increase in total local government expenditure in 2003 may be attributed to a growth in local government consumption. Consumption totalled NOK 168.4 billion in 2003, up more than 8 billion from 2002 according to the preliminary figures.

Revised figures for 2001

Revision of local government revenues and expenditure in 2001 involves a sizeable adjustment of local government consumption. Certain expenditures that were previously considered transfers to the private sector are now classified as social benefits in kind. As a result, local government consumption in 2001 is adjusted upwards by approximately NOK 3 billion.

Local government. Revenue and expenditure, by type. 2001-2003. NOK million.
Preliminary figures
  2001 2002* 2003* Change in
per cent
   2001/2002* 		Change in
per cent
   2002/2003*
A. CURRENT REVENUE       223 976       205 291       193 100 -8.3 -5.9
1. Property income, interest 9 953 9 579 8 000 -3.8 -16.5
2. Tax revenue  107 644 90 881 97 100 -15.6 6.8
3. Other current transfers  102 100  100 470 83 300 -1.6 -17.1
Transfers between government sectors 99 198 97 514 80 300 -1.7 -17.7
Other transfers 2 902 2 956 3 000 1.9 1.5
4. Operating surplus1 4 279 4 361 4 700 1.9 7.8
           
C. TOTAL REVENUE (=A)  223 976  205 291  193 100 -8.3 -5.9
           
D. CURRENT EXPENDITURE  223 289  191 696  198 900 -14.1 3.8
1. Property expenditure, interest 9 271 9 546 7 700 3.0 -19.3
2. Transfers to the private sector 21 215 20 912 22 200 -1.4 6.2
3. Other current transfers  224 1 081  600 382.6 -44.5
Transfers between government sectors 2 078 1 550 1 100 -25.4 -29.0
Transfers to municipal enterprises -1 854 -469 -500 74.7 -6.6
4. Final consumption expenditure  192 579  160 157  168 400 -16.8 5.1
Wages and salaries  144 775  120 266  127 400 -16.9 5.9
Intermediate consumption 50 039 40 632 42 000 -18.8 3.4
Consumption of fixed capital 16 527 16 795 16 900 1.6 0.6
Social benefits in kind 8 723 7 887 8 200 -9.6 4.0
Correction for operating surplus1 4 279 4 361 4 700 1.9 7.8
Administrative fees and charges (-) -31 764 -29 784 -30 800 -6.2 3.4
           
E. SAVING (A-D)  687 13 595 -5 800 1878.9 -142.7
           
F. CAPITAL EXPENDITURE 9 342 6 556 7 200 -29.8 9.8
1. Net fixed capital formation 10 515 7 707 8 500 -26.7 10.3
Gross fixed capital formation 27 042 24 502 25 400 -9.4 3.7
Consumption of fixed capital (-) -16 527 -16 795 -16 900 1.6 0.6
2. Net purchase of land -1 369 -1 428 -1 400 4.3 -2.0
3. Capital transfers         196  277  100 41.3 -63.9
           
G. TOTAL EXPENDITURE (D+F)  232 631  198 252  206 100 -14.8 4.0
           
H. NET LENDING/BORROWING (C-G) -8 655 7 039 -13 000 181.3 -284.7
2. Surplus before financial transactions2 -8 655 7 039 -13 000 181.3 -284.7
1  Operating surplus in municipal water supply, sewage disposal and refuse collection activities.
2  In 2002 exceptional circumstances in the municipality of Kristiansand contribute to a NOK 1.9 billion
decrease in surplus before financial transactions (capital injection in the Cultiva foundation).