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OSLO - Norway's minority government said on Monday it plans to raise spending in 2025 from the country's $1.8 trillion sovereign wealth fund to pay for public expenses, with elections for parliament due in September of next year.
The government of Labour and the Centre Party proposed withdrawing 460.1 billion Norwegian crowns ($43.1 billion) from the fund in 2025, up from a revised 416.5 billion in 2024, and must now negotiate with the Socialist Left to pass the budget.
Gross domestic product for the non-oil economy is now expected to grow by 0.7% this year, down from 0.9% growth seen in May, rising to 2.3% expansion in 2025 and 2.1% in 2026, the finance ministry predicted.
"The backdrop for the budget is an economy with prospects for stronger growth and continued low unemployment," the government said in a statement.
Core inflation for 2025 was seen at 3.2%, declining to 2.7% in 2026.
The structural non-oil deficit for 2025, a key measure of how much money the government will spend from the wealth fund, was set to 2.5% of the fund's expected value at the end of 2024, the finance ministry said.
($1 = 10.6719 Norwegian crowns)
(Reporting by Terje Solsvik, editing by Nora Buli)