Oil fund spending limit up for negotiation before next state budget

Siv JensenThe Liberal Left Party and the Christian Democrats may demand that the spending limit for the oil fund is lowered to 3 percent before they support government's budget proposal for 2015. (Photo: Finance Minister Siv Jensen) How much of the nation's oil wealth that can be funneled straight into the economy will be a hot topic in the negotiations on next year's state budget. Both the Liberal Left Party (Venstre) and the Christian Democrats (KrF) want the limit to be lowered from today's maximum of 4 percent down to 3 percent. 

 

"When the limit was set at 4 percent, no one imagined that the oil fund would become as big as it is today. The limit should be adjusted down to 3 percent," says The Liberal Left Party's fiscal spokesperson Terje Brevik. 

According to Brevik it would be fiscally irresponsible and selfish towards future generations to spend as much as up to 4 percent. The fiscal spokesperson for the Christian Democrats, Hans Olav Syversen, also says that he wants the current limit reevaluated. 

Several professors stated in an interview with Dagens Næringsliv earlier this week that the current spending limit is too generous and should be changed. The current rule is that the government may spend up to 4 percent, which is the fund's estimated return. The past few years the government has spent amounts that have been well under the limit. 

(E24)

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