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11038
Decreased local government deficit
statistikk
2006-02-17T10:00:00.000Z
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, 2005

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Decreased local government deficit

Preliminary figures show that the local government deficit before financial transactions decreased in 2005, compared to the previous year. The deficit - a key indicator in assessing the state of local government finances - amounted to NOK 7.4 billion, a reduction of almost 3 billion.

Local government revenue is estimated to nearly NOK 215 billion in 2005. This is an increase of 14 billion, or 7 per cent, and is mainly due to higher tax revenue and transfers from central government. Total expenditure amounts to 222 billion. This is approximately 11 billion, or 5.3 per cent, higher than the previous year, and is a result of a modest increase in both transfers to the private sector and final consumption expenditure. Capital expenditure showed a slight reduction. Gross fixed capital formation, the main component in capital expenditure, was on the same level in 2005 as 2004. Capital expenditure is however among the more uncertain variables in the preliminary accounts for local governments. Experiences from previous years show that this can be revised when final figures are published.

Data sources and estimation

The report is based on preliminary accounts from 295 municipalities and 16 county municipalities. The municipalities are divided into groups according to similarity and this is exploited in the estimation. The estimation technique builds on the assumption that there within each group is a correlation between the variables and the number of inhabitants in the municipality. The model gives estimates for the relation between each variable and the number of people. Next, variables for municipalities that have not reported accounts are estimated.

Local government. Revenue and expenditure, by type. 2003-2005. NOK million
  2003 2004* 2005* Change in
per cent
2003-2004* 		Change in
per cent
2004*-2005*
A. Current revenue  195 387        200 629        214 700 2.7 7.0
1. Property income, interest 9 269 7 123 7 800 -23.2 9.5
2. Tax revenue 96 943  101 240  107 600 4.4 6.3
3. Other current transfers 84 910 88 975 95 900 4.8 7.8
Transfers between government sectors 82 141 85 832 92 400 4.5 7.7
Other transfers 2 769 3 143 3 500 13.5 11.4
4. Operating surplus1 4 265 3 291 3 400 -22.8 3.3
           
C. Total revenue (=A)  195 387  200 629  214 700 2.7 7.0
           
D. Current expenditure  199 334  200 891  212 400 0.8 5.7
1. Property expenditure, interest 8 434 6 801 6 800 -19.4 0.0
2. Transfers to the private sector 22 564 21 483 22 500 -4.8 4.7
3. Other current transfers 1 149 -647  200 -156.3  130.9
Transfers between government sectors 2 259 1 944 1 700 -13.9 -12.6
Transfers to municipal enterprises -1 110 -2 591 -1 500 -133.4 42.1
4. Final consumption expenditure  167 187  173 254  182 900 3.6 5.6
Wages and salaries  127 074  130 843  138 000 3.0 5.5
Intermediate consumption 43 748 46 070 47 400 5.3 2.9
Consumption of fixed capital 15 024 16 408 17 000 9.2 3.6
Social benefits in kind 8 347 9 728 11 300 16.5 16.2
Correction for operating surplus1 4 265 3 291 3 400 -22.8 3.3
Administrative fees and charges (-) -31 271 -33 086 -34 200 -5.8 -3.4
           
E. Saving (A-D) -3 947 -262 2 300 . .
           
F. Capital expenditure 11 850 9 945 9 700 -16.1 -2.5
1. Net fixed capital formation 12 317 10 867 10 200 -11.8 -6.1
Gross fixed capital formation 27 341 27 275 27 200 -0.2 -0.3
Consumption of fixed capital (-) -15 024 -16 408 -17 000 -9.2 -3.6
2. Net purchase of land -783 -1 329 -800 -69.7 39.8
3. Capital transfers  316  407  300 28.8 -26.3
           
G. Total expenditure (D+F)  211 184  210 836  222 100 -0.2 5.3
           
H. Net lending/borrowing (C-G) -15 797 -10 207 -7 400 . .
2. Surplus before financial transactions -15 797 -10 207 -7 400 . .
1  Operating surplus in municipal water supply, sewage disposal and refuse collection activities.