Norway Producing More Tender

Norway has in 2020 experienced an economic setback without precedent since the war. Activity has been on the rebound in the last few months but the road ahead remains fraught with uncertainty. The fiscal budget for 2021 shall help Norway recover the coronavirus crisis.We will have to live with the coronavirus pandemic next year as well. The fiscal budget shall therefore ensure both effective infection control and maximum job creation. Some industries will still need additional help to get through the crisis. We shall at the same time facilitate economic growth and the green transition in order to meet the challenges facing us says Minister of Finance Jan Tore Sanner.The fiscal budget for 2021 is based on the Governments coronavirus crisis exit strategy Producing More and Making Working Life More Inclusive. Economic policy shall serve toGet people back to work We need to help businesses get going again all over the country and get as many people as possible back to work.Diversify the economy We need to create more jobs in more industries all over the country. This growth must come in the private sector. We invest in road and rail transport and improve operating conditions for business.Create a green future We need to enable businesses to create green jobs and a more sustainable future.Build skills We shall ensure that more people complete upper secondary education and acquire the skills needed to thrive in the labour market and the business sector of the future. We shall evolve the Education Initiative 2020.Make society more inclusive Everyone shall have the opportunity to participate in both working life and society in general.Preserve security and trust in Norwegian society and maintain a strong international involvement.The Government is in the fiscal budget 2021 continuing its long-term effort to strengthen the sustainability and resilience of the Norwegian economy. Although the economy is now doing better I need to emphasise that the crisis is not over. The budget we are presenting today provides for measures to keep the corona spread under control and serves to create economic growth and jobs says the Minister of Finance.It has in 2020 been necessary to launch extensive economic measures to reduce the negative impact of the pandemic. The Government has in line with the fiscal rule increased the structural non-oil deficit to support economic activity and jobs and to reduce unemployment.We will do everything in our power to ensure that Norway emerges from this crisis in the best possible position as well as to prevent the young from having to foot the bill says the Minister of Finance.Next years budget is based on the premise that there is still a need for an expansionary fiscal policy stance although on a smaller scale than this year. Many of the temporary emergency measures introduced in immediate response to the outbreak are phased out with the structural non-oil deficit being reverted to the long-term guideline of three percent of fund value. Spending is nonetheless significantly higher than before the pandemic started and the budgets for 2020 and 2021 will all in all boost economic activity and job creation next year.These are the key measuresGet people back to workExpansionary fiscal policy stance to be maintained in 2021 to stimulate economic growth nationwideBroad income tax reductions7000 new labour market programme placesDiversify the economyTax changes to boost businessFurther reduction of the tax on operating assetsIncrease the tax-exempted benefit on employee purchases of shares of the employing companyRestructuring of power generation taxation provides companies with liquidity when they invest15-percent withholding tax on the payment of interest and royaltiesSimpler rulesNOK 45 billion for research and developmentMajor road and railway investmentsContinued high priority to innovation and export promotion measuresCreate a green futureIncrease CO2 taxNOK 2.7 billion for CO2 capture transport and storageGreen platformClimate-friendly transport solutionsContinue measures to promote green shipping and fleet renewalBuild skills5000 additional university and university college places2100 additional higher vocational education places including the Industrial Trade SchoolFacilitate an increase in upper secondary education completion ratesNOK 900 million for the Lifelong Learning skills reformMake it easier to combine education and workExtend the scope for combining unemployment benefit with skill-enhancing training programmes until 1 JulyMake society more inclusiveLabour market programmes Prioritise youth and vulnerable groupsThe Inclusion InitiativeJob supportMentor scheme and wage supportOn-the-job trainingTraining coordinatorIntegrationThe Job Opportunity SchemeLanguage trainingFreedom from negative social controlInterpretation servicesPreserve security and trust in Norwegian society and maintain a strong international involvementIncrease child benefit and lump-sum maternity benefitExpand trial project on leisure activity cards for childrenIncrease grants for participating in holiday and leisure activitiesExpand discount schemes under the after-school leisure activity programmePrioritise strong hospital funding and high-quality health servicesNOK 3.5 billion increase in defence sector appropriationsKeep the 400 new police jobsMaintain development assistance at 1 percent of GNI