Municipalities across Norway face budget shortfall prompting cuts in healthcare services

Lene Lunde, a nursing assistant at Gimle Nursing Home in Vestre Toten Municipality, expressed her distress over the municipality’s decision to cut 5% from all budgets. “It’s completely terrible. We are frustrated. We feel we have already made cuts year after year and don’t know where to save anymore,” she stated. Lunde emphasized the growing pressures on healthcare workers, noting that promises of increased funding haven’t materialized, leaving them to manage increasingly difficult workloads.

A recent survey indicates that municipalities and counties across Norway are facing a budget shortfall of approximately 10 billion NOK for 2024, prompting significant cuts. Gunn Marit Helgesen, leader of the Association of Local Authorities in Norway (KS), stated that there isn’t enough funding to meet citizens’ expectations and the obligations set by the national parliament. She urged the government to take immediate action.

The survey, reflecting the financial situation as of September 1, 2024, revealed that 170 municipalities and 14 counties reported significant underfunding. These municipalities indicated an overspend of nearly 6 billion NOK, with an overall anticipated shortfall of around 8-9 billion NOK, not including Oslo’s figures or unaccounted tax losses and interest costs. Three-fourths of the municipalities reported overspending, particularly in healthcare and social services.

Bjørn Fauchald, director of Vestre Toten, lamented the ongoing budget leaks and the need for greater focus on funding essential services adequately. Meanwhile, Municipal Minister Erling Sande promised an additional 2.5 billion NOK for municipalities in 2025 and suggested that more funds would be allocated, with details to be disclosed in the upcoming state budget announcement.