The Standing Committee on Finance and Economic Affairs has reviewed the government's national and state budget proposals for 2026. Negotiations between the governing Labour Party and its supporting parties—the Socialist Left Party, Centre Party, Red Party, and Green Party—broke down, leaving no majority behind any spending framework in the committee's recommendation. The Labour Party, Centre Party, and Red Party have instead submitted their own budget proposal as the committee's recommendation.
AI-generated summary · Model: Claude Haiku 4.5 · Generated: 14 May 2026
These are the proposals in the document, not decisions. See the votes for the outcome.
The government proposes drawing 579 billion kroner from the sovereign wealth fund in the 2026 state budget, equal to 13.1 percent of trend mainland GDP
Defence spending is proposed to increase by 4.2 billion kroner, bringing total defence expenditure to 3.4 percent of GDP in 2026
85 billion kroner is proposed for aid to Ukraine in 2026: 15 billion in civilian support and 70 billion in military support
A Norway price scheme is proposed at 40 øre per kilowatt-hour excluding taxes, with 11.5 billion kroner total for the scheme and electricity and district heating support measures
Income tax is proposed to be cut by more than 4 billion kroner through increased personal deductions and reduced national insurance contributions
Electricity tax is proposed to be reduced by 4 billion kroner
Maximum childcare fees are held at 1,200 kroner per month, with 700 kroner in zones 5 and 6, and free childcare in the prioritised zone in Finnmark and North Troms
Twelve hours of free after-school care for first, second, and third-grade pupils continues
Funding for the agricultural agreement is proposed to increase by just under 1.2 billion kroner to 30.1 billion kroner
Municipal sector free revenues are proposed to increase by 4.2 billion kroner
One billion kroner is proposed over four years to improve students' reading skills
Hospital funding is proposed to increase by 3.4 billion kroner, with funding for investment loans in five new hospital buildings
A new subsidy scheme is proposed to help older people adapt their homes so they can remain living independently longer
The mental health escalation plan is proposed to be followed up with stronger low-threshold services in municipalities
Funding for the state child welfare system is proposed to increase
Labour market policy is proposed to be stepped up through increased use of labour market measures, a pilot youth employment programme, and recruitment initiatives for health and care sectors
National insurance spending outside unemployment benefits is proposed to increase by 39.3 billion kroner in current prices
The climate levy is announced to be phased in to approximately 2,400 kroner (2025-value) by 2030, with the same pace continuing after 2030 to reach 3,400 kroner by 2035
Funding for Innovation Norway and regional and district policy grants is proposed to be cut by approximately 400 million kroner
The loan limit for green industrial financing is proposed to be reduced from 5,000 to 4,100 million kroner
The loan scheme for building environmentally friendly ships is proposed to be discontinued
The transfer to the Climate and Energy Fund is proposed to be reduced by approximately 1.9 billion kroner to 7.2 billion kroner
The National Transport Plan allocation is given a nominal increase of 1.5 billion kroner from the 2025 balanced budget
Work on the Stad Ship Tunnel is proposed to be halted, saving approximately 140 million kroner in 2026
Funding for the broadband development subsidy scheme is proposed to be cut by 370 million kroner
Funding for telecommunications security and preparedness is proposed to increase significantly
Support for single parents is proposed to be phased out for new recipients, except for single parents with sole custody of children requiring special supervision and those with children under 14 months
The debt relief scheme for districts is proposed to be more targeted by limiting it to at least central municipalities and setting the period for educational debt cancellation at three years
Cash support and child benefits are proposed to continue at nominal levels
The increased child benefit supplement for residents of North Troms, Finnmark, and Svalbard continues
A pilot scheme with work deductions for young people is proposed
The VAT threshold for electric car purchases is proposed to be reduced to 300,000 kroner in 2026, and VAT benefits for new electric car purchases are proposed to be removed entirely from 2027
The one-time car registration tax is proposed to be adjusted to simplify the system while maintaining incentives for electric vehicle purchases
Electricity tax is proposed to be reduced to 4.18 øre per kilowatt-hour year-round
Several tax loopholes are proposed to be closed, including double interest deductions for financial enterprises with foreign operations, capital gains taxation in the real estate sector, and VAT rules for international trade in services