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11056
Substantial local government deficit
statistikk
2010-02-19T10:00:00.000Z
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, 2009

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Substantial local government deficit

Preliminary figures for local government showed a deficit of NOK 23 billion in 2009. This is the third successive year of substantial deficit in local government.

Total revenue is estimated at almost NOK 335 billion; a rise of about 8 per cent compared to 2008. The growth of tax income was 5.3 per cent, which is less than the previous year. Current transfers is the second largest income factor, and the growth was almost 15 per cent. This large growth is partially explained by transfers intended to lower the consequences of the financial crisis.

Compensation of employees, which represents approximately one half of total expenditure, is estimated at NOK 186 billion in 2009. This is almost NOK 14 billion more than the previous year, rising by around 8 per cent, which is less than the previous year.

Local government gross fixed capital formation has been soaring in recent years. The amount has risen from NOK 30 billion in 2006 to NOK 44 billion in 2009, and this explains a significant part of the deficits in recent years. Several objectives of local government have had large growths, especially education, child care and care of the elderly. In 2009 the most significant part of the growth of fixed capital formation benefited education.

Local government interest payments declined in 2009. This can be partly explained by low interest rates in 2009. Another important factor is the decline of the stock markets during the autumn of 2008, which imposed high interest costs that year.

Local government. Revenue and expenditure by type. Preliminary figures. 2007-2009. NOK million
  2007 2008* 2009* Change i per cent
2007-2008* 		Change i per cent
2008*-2009*
A. Revenue  289 453       310 222       334 500 7.2 7.8
Taxes on income, wealth etc.  114 758  121 501  128 000 5.9 5.3
Taxes on goods and services 7 792 8 417 8 600 8.0 2.2
Property income 15 280 14 925 12 000 -2.3 -19.6
Administrative fees and charges 36 874 39 319 41 500 6.6 5.5
Current transfers  114 749  126 059  144 300 9.9 14.5
           
B. Expense  288 529  322 095  339 900 11.6 5.5
Wages and salaries  155 977  172 288  186 100 10.5 8.0
Intermediate consumption 57 168 62 610 67 500 9.5 7.8
Consumption of fixed capital 20 941 23 659 25 200 13.0 6.5
Social benefits in kind 14 229 16 429 18 600 15.5 13.2
Property expenditure, interest 11 225 15 996 10 000 42.5 -37.5
Social benefits in cash 7 892 8 442 9 200 7.0 9.0
Subsidies 9 298 10 491 10 700 12.8 2.0
Current transfers 10 717 11 011 11 800 2.7 7.2
Capital transfers 1 082 1 170  800 8.0 -31.6
           
C. Change i net worth from transactions (A-B)  924 -11 873 -5 400    
           
D. Net acquisitions of non-financial assets 13 385 14 019 17 600 4.7 25.5
Gross fixed capital formation 35 861 38 844 44 300 8.3 14.0
Consumption of fixed capital (-) -20 941 -23 659 -25 200 13.0 6.5
Net aquisitions of land -1 535 -1 166 -1 500 -24.0 28.7
           
E. Total expenditure (B+D)  301 914  336 114  357 500 11.3 6.4
           
F. Net lending/borrowing (A-E) -12 461 -25 892 -23 000    
Surplus before financial transactions -12 461 -25 892 -23 000    

Data sources and uncertainty

The statistics are based on preliminary accounts for municipalities and county municipalities. Considerable uncertainty is connected with some of the figures, for instance capital expenditure, property income and property expenditure. According to experiences from previous years, the figures may be revised when final figures are available. The 2009 figures must therefore be used with caution.

New table

As is the case in tables of the statistics “General government revenue and expenditure”, the table in these statistics is presented in a new and updated form. Read more about the changes here