NOK five billion more to local authorities in 2012

The Government proposes that local authorities receive a real income growth of NOK five billion in 2012. "The local authority sector has been prioritised in a down-to-earth budget," says Minister of Local Government and Regional Development Liv Signe Navarsete.

NOK 3.75 billion of the extra income will be unrestricted. The growth in unrestricted income is intended, among other things, to help cover the additional expenses the local authorities face as a result of an increasing population.

"The budget proposals will help enable a continuation of good municipal services in 2012. More people will be employed by local authorities next year, because we have more children who need day nursery places and good schools and we have more elderly people who need care," says Navarsete.

The Government has put forward a budget that shall ensure jobs and good order in the local economy.

"A strong, healthy municipal economy is a precondition for good welfare services throughout the country. Many European countries have already warned of large cuts in public budgets. I am glad that we in Norway can continue to concentrate on good welfare services," says Navarsete.

"It is important that the local authorities continue the work of reorganisation and efficiency, so that every krone is used to provide the best possible services for residents. Local and county authorities must exercise good economic management and tailor their activity levels to the level of their incomes," says Navarsete.

In addition to the increase in unrestricted income, the Government also proposes specific initiatives aimed at day nurseries, child welfare, schools, health, care and transport.

The interest compensation scheme for school and swimming pool buildings is intended to stimulate local and county authorities into new building and renovation of existing ones. The Government proposes that in 2012 local and county authorities will be able to receive compensation for interest expenses corresponding to an investment ceiling of up to NOK two billion.

NOK 400 million of the increased income for county authorities is earmarked for improving the operation and maintenance of county roads. The Government also proposes that in 2012 county authorities will be able to receive compensation for interest expenses corresponding to an investment ceiling of up to NOK two billion.

The Government proposes investment support for a further 1,500 nursing home and in-home care places in 2012. The Government also proposes a new subsidy for the establishment of day care for those suffering from dementia.

Interaction reform will be started in 2012. This reform will enable people to receive better health services closer to where they live. Local authorities will have new tasks within the health service, including co financing responsibility for specialist health services and greater responsibility for patients who are discharged from hospital. The Government proposes to transfer NOK 5.6 billion to local authorities to finance these tasks. In order that no local authorities will lose from the reorganisation, the Government is allocating NOK 305 million of the rise in unrestricted income to compensation to individual authorities.

 

For more information, contact the press centre at the Ministry of Local Government and Regional Development on tel. 22 24 25 00