GAPP Principle 4

There should be clear and publicly disclosed policies, rules, procedures, or arrangements in relation to the SWF’s general approach to funding, withdrawal, and spending operations.

• GAPP 4.1 Subprinciple The source of SWF funding should be publicly disclosed.
• GAPP 4.2 Subprinciple The general approach to withdrawals from the SWF and spending on behalf of the government should be publicly disclosed.

Status: Implemented

The capital base of the GPFN originates primarily from surpluses in the national insurance accounts after the introduction of the National Insurance Scheme in 1967 and until the late 1970s. The Government Pension Fund Act, which is publicly available, legislates the funding of and withdrawal from the GPFN. The legislation is consistent with the macroeconomic purpose of the Fund to support government savings to finance pension expenditures of the Norwegian National Insurance Scheme. The income to the GPFN is the return generated by the Fund net of costs incurred by the operational manager (Folketrygdfondet). The return is added to the Fund on an ongoing basis. The capital in the Fund may only be used for transfers to the central government budget pursuant to a resolution by the Norwegian Parliament.

Sources: Government Pension Fund Act, GPFN mandate, Ministry of Finance’s website.