Norway’s revised national budget faces criticism for lack of welfare support

Norway’s revised national budget for 2027, presented Tuesday by Finance Minister Jens Stoltenberg, has been met with opposition from multiple parties, with critics calling it “grey and dull” and failing to address rising living costs, Dagbladet reports.

Stoltenberg defended the proposal as “neutral,” arguing it would not increase economic pressure or inflation. The government plans to reduce oil revenue spending by 4.9 billion kroner compared to the original budget, with a 2.7 percent withdrawal from the sovereign wealth fund—below the fiscal rule’s limit.

“The most important thing we do in this budget is maintain responsible economic policy, which is the best way to safeguard people’s finances,” Stoltenberg said at a press conference. He acknowledged confusion over the budget’s impulse increase—from 0.6 to 0.9 percent—attributing it to a smaller-than-expected deficit in 2025.

Opposition parties condemned the proposal. The Red Party’s leader, Marie Sneve Martinussen, called it “grey and dull,” while the Conservative Party’s Nicolai Astrup warned of potential concessions to coalition partners that could raise interest rates. The Progress Party’s Hans Andreas Limi accused the government of failing to curb inflation or ease household costs, proposing instead to halve food VAT and extend fuel tax cuts.

Key figures include a projected 3.5 percent consumer price index rise, 3.2 percent core inflation, and 2.1 percent unemployment. The government also confirmed the cancellation of the controversial Stad Ship Tunnel project, citing low utility.

Budget negotiations with supporting parties (SV, Centre Party, Red Party, and Green Party) are set to begin next week.