Strong criticism of Government's revised budget proposal

The opposition in Parliament has come with strong criticism of the government's proposal for a revised budget for next year. The Labour government has announced large cuts totalling 3.5 billion Nkr in order to keep a balanced budget. There will be less for defence, foreign aid, hospital equipment and children's allowance. The proposal also calls for the employer to take on a larger share of employee's sick pay. The president of the Norwegian Federation for Trade and Industries, Frode Onarheim, says this is a set-back in the work to reduce sick leave. He figures the proposal will cost employers in the private sector an added 700 million Nkr a year. Former prime minister Kjell Magne Bondevik says the proposal is certainly not an invitation to the centrist coalition partners for cooperation. He reacts strongly to the proposed large cuts in the aid budget. The Conservative Party's spokesman Per Krisitian Foss is fearful that the budget proposal will result in an increase in the intererest rate. The Socialist Left says the municipalities will suffer under the proposed budget. The Government also proposes to postpone the purchase of 20 new jet fighters for the Norwegian Air Force, as part of the cut-back in military expenditure. The purchase has already been approved by Parliament at an earlier date. On the positive side, the proposal includes a cut in the tax on diesel fuel by 20 oere pr liter. (NRK) Rolleiv Solholm