Norway Proposes 2027 Budget With 2.33 Trillion Kroner in Revenue
Norway’s government presented its 2027 state budget proposal in the Storting on October 7, 2026, outlining plans for total revenues of 2,328.5 billion kroner. Finance Minister Jens Stoltenberg detailed a spending framework that draws 608.4 billion kroner from the Government Pension Fund Global, commonly known as the oil fund. That withdrawal represents 2.7 percent of the fund’s capital at the start of the year, which is an increase of 4.9 billion kroner from the 2026 budget in 2027 prices, though its share of the gross domestic product remains unchanged from the previous year.
The proposed budget targets real expenditure growth of 0.2 percent compared to 2026. Because the government must negotiate the proposal with SP, SV, Rødt, and MDG before final adoption, the figures remain subject to change. Stoltenberg stated during his presentation that the fiscal plan aims to strengthen the everyday economy of citizens while prioritizing defense, education, and healthcare.
Government proposes 6.4 billion kroner in tax reductions
The government intends to keep the overall level of taxes and fees flat while delivering tax cuts primarily aimed at the broad population through lower social security contributions and higher tax-free allowances. Total tax reductions are estimated at approximately 6.4 billion kroner, marking the fourth year of income tax cuts. A two-earner family with a combined income of 750,000 kroner will pay 15,000 kroner less in taxes next year than they did in 2021, with 3,500 kroner of that relief originating in the new budget.
Following recommendations from the tax commission, the government proposes lowering the value-added tax exemption threshold for electric vehicles from 300,000 kroner to 150,000 kroner. With nearly 98 percent of all newly registered passenger cars now electric, the objective of achieving a zero-emission new car fleet is practically complete. Meanwhile, climate taxes will continue to rise according to a prior agreement in the Storting to ensure cost-effective emission reductions.
To help households manage volatile energy expenses, the electricity subsidy program will continue through next year. It covers 90 percent of household electricity costs exceeding 79 øre per kilowatt-hour before taxes, while the benchmark electricity price, Norgespris, remains unchanged.
Defense Funding and Municipal Welfare Services
Defense spending will receive an additional 6.5 billion kroner, bringing total military outlays to an estimated 3.4 percent of gross domestic product in 2027. The budget maintains financial backing for Ukraine through the Nansen Program at 85 billion kroner, alongside increased resources for police and security agencies.
Municipalities will receive an increase of 3.2 billion kroner in free revenues to support local social services, elderly care facilities, and nursing homes. To address student performance following recent PISA results, the plan introduces targeted funding for schools to expand small-group instruction. Hospitals will receive an extra 3.1 billion kroner alongside a new financing model designed to reduce patient wait times and expand mental health care services.
When the 2027 state budget must be finalized?
When must the 2027 state budget be finalized?
The government presented the draft on October 7, 2026, and it requires negotiation with SP, SV, Rødt, and MDG in the Storting before final adoption.
How much money will the government withdraw from the oil fund?
The state plans to withdraw 608.4 billion kroner from the Government Pension Fund Global, which equals 2.7 percent of the fund’s asset value at the start of the year.
What changes are proposed for electric vehicle taxation?
The value-added tax exemption limit for new electric passenger cars will drop from 300,000 kroner to 150,000 kroner under recommendations from the tax commission.