Norway is emerging from the pandemic with economic growth and low unemployment. This means that the government will hold back on spending in the state budget 2023 to avoid a too rapid rise in the key policy rate.
– When we use public money, we must use it in a way that they create activity, and not just create higher prices. And then Norges Bank is responsible for interest rates, said Minister of Finance Trygve Slagsvold Vedum (Sp) when he met the press outside the hotel where the government is meeting for a budget conference in the next few days.
Prime Minister Jonas Gahr Støre (Labor Party) also thinks it is gratifying that the Norwegian economy is doing well, but he warns against overheating in the economy.
– It is the spiral with low unemployment, higher wages, higher prices, higher interest rates and a stronger krone that we call overheating of the economy, which we must avoid, he said.
Unrest will affect the budget conference
At the same time, the war in Ukraine has led to higher raw material prices and high prices for electricity, gas and fuel in Europe. This will also make its mark on the budget conference, said the Prime Minister.
– What is happening in Europe will have an impact on what is going to happen here. In such a situation, it becomes an overriding theme for us when we are to create a state budget, is to think about security for the country and security for people’s finances.
The Minister of Finance believes that the situation means that it will be important to look at emergency preparedness both militarily and civilly in the future.
– We must strengthen the defense. At this budget conference, we will look at 2023, but we must also look at measures in the short term. When it comes to civil preparedness, we must look at everything from the police to civil defense and food preparedness that becomes important.
Take care of Ukrainian refugees
The war has also led to many people fleeing Europe. And many of them will also come to Norway, says Vedum. It will therefore be important for the government to find ways for Norway to do this in a good way.
– We do not know how many will come. In the short term, we must look at how we can equip Norway to receive refugees here and now. But we must also see how we in 2023 can ensure that people get into local communities, into school and work.
Vedum emphasizes that the refugees who now come are resourceful people who can contribute a lot to the local communities, and that it is important to ensure that they get on well in Norway, whether they stay here for a short or long time.
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