General government revenue and expenditure, 2006

General government’s total revenue amounted to NOK 1231 billion in 2006. This corresponds to an increase of NOK 167 billion, or 15.7 per cent, compared with the previous year. Tax revenues amounted to NOK 959 billion in 2006, an increase of 13.1 per cent compared with 2005. High revenue from taxes on extraction of petroleum constitutes the major part of the increase in tax revenue. In addition, increased revenue from VAT (value added tax) and several other taxes on production and imports contributed to the large increase. Employer’s contributions to the National Insurance Scheme had a considerable increase in 2006.

Wage expenses grew

General government's total expenditure came to NOK 817 billion in 2006. This is an increase of NOK 49 billion, or 6.4 per cent, compared with 2005. Wage expenses grew by 6.3 per cent in 2006 and constituted the major part of the increase in expenditure. Pensions grew from NOK 156 billion in 2005 to NOK 165 billion in 2006. Sickness and maternity benefits etc. amounted to NOK 37 billion in 2006, an increase of 8.4 percent compared with the previous year. Unemployment benefits came to NOK 6.1 billion in 2006, a reduction of NOK 3.5 billion compared with 2005.

Growth in central government revenues

Central government’s total revenue amounted to NOK 1051 billion in 2006. This is an increase of 16.5 per cent compared with the previous year. The large increase in revenue is mainly due to high oil prices that allocate a high income from petroleum activities. Central government’s total expenditure amounted to NOK 680 billion in 2006. Central government surplus, measured by net lending, came to NOK 371 billion in 2006, an increase of NOK 106 billion compared with the previous year.

The important petroleum activities

The central government receives tax revenue from all the subsoil extractors operating on the Norwegian continental shelf. The central government fiscal account show that the recorded numbers for taxes on income and wealth from the extraction of petroleum amounted to NOK 212 billion in 2006. This is a growth of NOK 47 billion compared with 2005. In addition to the petroleum taxes, the central government receives the surplus from State’s Direct Financial Interest (SDFI)'s shares on the Norwegian continental shelf. The surplus is shown as withdrawals of income from central government enterprises in the central government fiscal account. The operating surplus at SDFI came to NOK 125 billion in 2006. This corresponds to a 25.5 per cent increase compared with 2005.

The petroleum activity seen as a separate unit generated a surplus close to NOK 390 billion. This calculation contains accrued taxes, withdrawals, interest and dividend plus other income and expenditure due to the petroleum sector.

Increase in local government revenues

Preliminary figures for local government revenue and expenditure 2006 show a surplus of NOK 3.1 billion. This is a significant improvement compared with 2005, when the accounts showed a deficit of NOK 3.3 billion. The improvement is mainly due to higher tax revenue and transfers from central government.

Total revenue is estimated to nearly NOK 241 billion in 2006. This is an increase of more than NOK 22.5 billion, or approximately 10 per cent, compared with the previous year.