Oct 8, 2010
| Last Updated
Norway’s government revealed its 2011 budget proposal on October 5, 2010. The change in the structural non-oil deficit as a share of mainland (excluding oil, gas and shipping) trend GDP—which is the commonly used indicator to measure the budget’s impact on the economy—implies fiscal tightening by 0.2 percentage points. The tighter budget follows three years of expansionary fiscal policy.
The government expects the 2012 budget will be in line with the fiscal rule, which has guided Norwegian budgets since 2001. The rule stipulates that only the expected long-run annual return of[...]
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