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The budgetary rule ( no, handlingsregelen) is a rule concerning the usage of
About the government pension fund
from the Norwegian government Energy economics Energy in Norway Public finance of Norway 2001 introductions 2001 establishments in Norway {{Norway-stub
The budgetary rule ( no, handlingsregelen) is a rule concerning the usage of capital gain
Capital gain is an economic concept defined as the profit earned on the sale of an asset which has increased in value over the holding period. An asset may include tangible property, a car, a business, or intangible property such as shares.
...
s from The Government Pension Fund - Global of Norway
Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and t ...
. The rule states that a maximum of 3% of the fund's value should be allocated to the yearly government budget
A government budget is a document prepared by the government and/or other political entity presenting its anticipated tax revenues (Inheritance tax, income tax, corporation tax, import taxes) and proposed spending/expenditure (Healthcare, Educa ...
. Its main stated justification is to avoid the Dutch disease
In economics, the Dutch disease is the apparent causal relationship between the increase in the economic development of a specific sector (for example natural resources) and a decline in other sectors (like the manufacturing sector or agricultur ...
in the Norwegian economy due to the large influx of oil-sourced revenue. It is believed that the fund will grow with more than 3% yearly over time, which makes it possible to allocate up to 3% to the yearly budget without decreasing the value of the fund.
The rule was introduced in 2001 during the First cabinet Stoltenberg, and has a broad cross-party support.
The rule was last changed from 4% to 3% February 2017. Every party in the parliament was in favour of the change, except the right wing Progress Party (Norway)
The Progress Party ( nb, Fremskrittspartiet; nn, Framstegspartiet; se, Ovddádusbellodat), commonly abbreviated as FrP, is a right-wing political party in Norway. The FrP has traditionally self-identified as classical-liberal and as a libertari ...
.
See also
*Golden Rule (fiscal policy)
The Golden Rule is a guideline for the operation of fiscal policy. The Golden Rule states that ''over the economic cycle, the Government will borrow only to invest and not to fund current spending''. In layman's terms this means that on average o ...
References
External links
About the government pension fund
from the Norwegian government Energy economics Energy in Norway Public finance of Norway 2001 introductions 2001 establishments in Norway {{Norway-stub