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11040
Lower local government deficit
statistikk
2005-02-18T10:00:00.000Z
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, 2004

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Lower local government deficit

Preliminary figures show that the local government sector had a significant deficit before financial transactions in 2004. The deficit - a key indicator in assessing the state of local government finances - amounted to NOK 11.6 billion.

Increased revenue contributed to a reduction in the deficit before financial transactions of NOK 4.3 billion compared with 2003. There is some uncertainty attached to the variables fixed capital formation and property income and expenditure. Experience from previous years show that these variables can change when the final figures are published.

Increased revenue

Local government revenue is estimated to NOK 200.5 billion in 2004. This is an increase of more than 5 billion, or 2.7 per cent, and is mainly due to higher tax revenue and transfers from central government.

Total expenditure only up 0.4 per cent

There are several reasons for the modest increase in total expenditure. The responsibility of areas such as child welfare and family counselling has been transferred to central government. This contributes to low consumption and a reduction in transfers to the private sector. At the same time, gross fixed capital formation is down by more than 5 per cent from 2003.

Operating result

Some key figures according to the municipalities' own accounting definitions have also been estimated. All key figures are in per cent of total operating revenues. They show that the municipalities attained a gross operating result (depreciation excluded) of 2.7 per cent in 2004. Net operating result is estimated to 0.4 per cent. For the county municipalities the figures are 5.2 per cent and 3.7 per cent respectively. For the municipal sector as a whole the figures are 3.0 per cent and 0.9 per cent. The key figures indicate a significant improvement in the operating result of the county municipalities, while the operating result of the municipalities is on level with the previous year.

Data sources and estimation

The figures presented here are based on preliminary accounts from 223 municipalities and all 18 county municipalities. The municipalities are divided into groups according to similarity. The estimation technique builds on the assumption that, within each group, there is a correlation between the variables and the number of inhabitants in the municipality. The model gives estimates for the correlation between each variable and the number of people. Variables for municipalities that have not submitted their accounts are then estimated.

Local government. Revenue and expenditure, by type. Preliminary figures. 2004.
NOK million
        2002       2003*       2004*       Change in
per cent
2002/2003* 		      Change in
per cent
2003*/2004*
A. CURRENT REVENUE       205 236       195 278       200 500      -4.9      2.7
1. Property income, interest 9 580 9 276 7 100 -3.2 -23.5
2. Tax revenue 90 881 96 934  101 500 6.7 4.7
3. Other current transfers  100 297 84 844 88 000 -15.4 3.7
Transfers between government sectors 97 341 82 096 85 400 -15.7 4.0
Other transfers 2 956 2 748 2 600 -7.0 -5.4
4. Operating surplus1 4 478 4 224 3 900 -5.7 -7.7
           
C. TOTAL REVENUE (=A)  205 236  195 278  200 500 -4.9 2.7
           
D. CURRENT EXPENDITURE  189 509  200 330  203 500 5.7 1.6
1. Property expenditure, interest 9 547 8 426 6 400 -11.7 -24.0
2. Transfers to the private sector 20 988 22 552 21 300 7.5 -5.6
3. Other current transfers 1 195 1 141 2 200 -4.5 92.8
Transfers between government sectors 1 665 2 259 2 200 35.7 -2.6
Transfers to municipal enterprises -470 -1 118 0  137.9 -100.0
4. Final consumption expenditure  157 779  168 211  173 600 6.6 3.2
Wages and salaries  120 084  127 100  130 700 5.8 2.8
Intermediate consumption 41 161 43 722 44 600 6.2 2.0
Consumption of fixed capital 14 744 16 116 16 600 9.3 3.0
Social benefits in kind 7 095 8 334 9 700 17.5 16.4
Correction for operating surplus1 4 478 4 224 3 900 -5.7 -7.7
Administrative fees and charges (-) -29 783 -31 285 -31 900 5.0 2.0
           
E. SAVING (A-D) 15 727 -5 052 -3 000 -132.1 40.6
           
F. CAPITAL EXPENDITURE 8 762 10 840 8 600 23.7 -20.7
1. Net fixed capital formation 9 780 11 192 9 300 14.4 -16.9
Gross fixed capital formation2 24 524 27 308 25 900 11.4 -5.2
Consumption of fixed capital (-) -14 744 -16 116 -16 600 9.3 3.0
2. Net purchase of land -1 370 -671 -1 100 -51.0 63.9
3. Capital transfers  352  319  400 -9.4 25.4
           
G. TOTAL EXPENDITURE (D+F)  198 271  211 170  212 100 6.5 0.4
           
H. NET LENDING/BORROWING (C-G) 6 965 -15 892 -11 600 -328.2 27.0
2. Surplus before financial transactions2 , 3 6 965 -15 892 -11 600 -328.2 27.0
1  Operating surplus in municipal water supply, sewage disposal and refuse collection activities.
2  Extraordinary expenditures in the municipality of Kristiansand contribute to a decrease in surplus before financial transactions of NOK 1.9 billion in 2002.
3  Extraordinary transfers in connection with the central government takeover of all hospitals contribute to an increase in surplus before financial transactions of NOK 21.6 billion in 2002.