General government revenue and expenditure, 2006

General government total revenue amounted to NOK 1210 billion in 2006. This is an increase of 14 per cent compared with the previous year. Tax revenues amounted to NOK 936 billion in 2006, an increase of 10 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 several other taxes on production and imports contributed to the large tax increase. Employer contributions to the National Insurance Scheme increased considerably in 2006.

Increase in wage expenses

General government total expenditure came to NOK 823 billion in 2006, an increase of 7 per cent compared with 2005. Wage expenses rose by 6 per cent in 2006 and came to NOK 256 billion.

Growth in central government revenues

Central government total revenue amounted to NOK 1052 billion in 2006. This is an increase of 17 per cent compared with the previous year. The large increase in revenue is mainly due to high oil prices. Central government total expenditure amounted to NOK 681 billion in 2006. The central government surplus, measured by net lending, came to NOK 370 billion in 2006, an increase of NOK 106 billion compared with the previous year.

Increase in revenues from petroleum activities

The central government receives tax revenue from all subsoil extractors operating on the Norwegian continental shelf. The central government fiscal account shows that the recorded tax on income and wealth from extraction of petroleum amounted to NOK 212 billion in 2006. This is a growth of NOK 47 billion compared with 2005. In addition to petroleum taxes, the central government receives the surplus from the State’s Direct Financial Interest (SDFI) 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 of the SDFI came to NOK 125 billion in 2006. This corresponds to an increase of approximately 25 per cent 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 from the petroleum sector.

Local government surplus

Local government total revenue amounted to NOK 242 billion in 2006. This is an increase of NOK 24 billion compared with 2005. The increase in revenue is mainly due to high tax revenue and transfers from central government. Total expenditure amounted to NOK 241 billion, an increase of NOK 19 billion compared with 2005. The surplus for local government, measured by net lending, came to NOK 1.5 billion. This is a significant improvement from 2005, when the accounts showed a deficit of NOK 3.3 billion.

General government expenditure by function

The classification of general government expenditure by function shows that social protection, health and education were the largest categories in 2006. Social protection came to NOK 329 billion and accounted for 40 per cent of total expenditure. Health and education accounted for 17 and 14 per cent respectively. In the period 2000 to 2006 there have been changes in the categories’ share of total expenditure. Social protection and health have increased their share of total expenditure, while economic affairs, defence and environmental protection have decreased their share.