– Again the government chooses the path of least resistance and allocates more money. But more money is the wrong answer to the challenges, says chief economist Øystein Dørum at NHO.
He believes that the problems that the country’s municipalities are currently facing must be solved through redistribution between the municipalities in order not to affect Norway’s economy. Dørum writes that the increased allocations to the municipalities will increase the budget impulse for mainland GDP from 0.7 to 0.8 per cent.
– Viewed in isolation, this means high interest rates for longer than previously estimated, says Dørum.
He points to a number of conditions, such as the fact that in recent years the municipalities have had more money to deal with than planned which was not confiscated. Then it will be wrong to be supportive when things are going a little worse than expected, he believes.
Dørum also criticizes the government for the promised extra allocation to the municipalities and counties for 2025. He points out that it is only four weeks since the government presented the state budget for next year, and that the scheme for financing in the municipalities was then estimated to be satisfactory.
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