Exceptionally demanding budget – VG

Rarely has a Norwegian government faced more demanding budgetary work than that of Jonas Gahr Store, which is now meeting in Klikken. after the pandemic. With the energy crisis and high inflation in large parts of the world. And with the war in Europe.

This is a captain. The leader expresses the position of VG. VG’s political editor is responsible for the leader.

Norway is in a very fortunate position, as it has a very strong economy. But forecasts for the Norwegian economy through annual forecast reports have long indicated that politicians will have less money available going forward. We’ve gotten older and older, and we’re getting less and less of working age.

Over the years, we’ve been given three different options to meet this: Taxes have to go up. Expenses should be reduced. Or we need more work, more working hours, and more efficiency.

All governments know this. They talked a lot about what awaits us. But the temptation became too great. The use of the funds increased year by year – long before the outbreak of the epidemic.

crowns and pennies

When the coronavirus arrived in Norway, oil money and broad public budgets meant we could spend more money to address the economic effects of the shutdown of society. It was absolutely necessary.

After the country reopened, we saw that many wanted to stick with many compensation plans.

This in itself was a challenge to the new government, which was to draw up the first state budget from scratch.

Finance Minister Trygiv Slagsvold Widom and the rest of the government knew it had to be tightened – and that it would affect ordinary people.

Then came the energy crisis. It was brutal, but still evident. The dispute was about Kroner and Urey, about how much the state should bring in and cover the electricity bills of residents and businesses.

We are now seeing the same controversy when it comes to gasoline prices. These are classic political debates, where the opposition always has more money, and the current government should back down, to the best of its ability.

anonymous room

With the Russian invasion of Ukraine, and the economic consequences of this, it is different. The most powerful economic sanctions in human memory will affect the economy for a long time, both in Norway and in the rest of the world. No one can fully anticipate the consequences. All we know is that the world is entering an economic and political rocky terrain.

The state budget for next year should take this into account.

What is clear and known in this new situation, such as that it is now necessary to strengthen the defense budget, ensure food security and other preparations. Anonymous will create space in the budget to correct what may come.

Basulm and Barth Eddy

At the same time, the use of funds should remain within responsible limits. Increased credits for good causes may seem generous in the first place, but they can backfire sharply. If the economy is too hot, with high inflation and high interest rates, it will also affect ordinary people.

Some politicians, such as Millennium Development Goals leader Un Basholm and Climate Minister Espen Barth Eide, have rejected suggestions that Norway should give it up, or use it suddenly to go green, all of Norway earning more oil and gas for the time being.

This is undesirable and irresponsible. Norway, of course, should help what we can.

With our extraordinarily large revenues from oil and gas due to the war, we have a special responsibility. But it must be done in an orderly manner, with well-thought-out solutions, in a responsible framework.

This is not the time for frivolity. The government has a great responsibility to resolve Norway safely during a difficult time. The economy must be healthy. It also gives us more room to help. In the short and long term.

Hear more in today’s episode of the podcast Giæver og Gjengen: