The anticipation for next year’s state budget is high, with Finance Minister Trygve Slagsvold Vedum (Sp) highlighting a strong economic outlook and continued low unemployment in a press release. As the state budget for 2025 is set to be unveiled on Monday, the government has outlined plans for tax cuts for the general population.
Individuals earning 200,000 kroner can expect a reduction of around 10,000 kroner in income tax. Those with a 700,000 kroner income may see a decrease of approximately 4,800 kroner in income tax, while those earning close to a million will receive a slight tax cut. Additionally, the threshold for tax-free income is being raised from 70,000 to 100,000 kroner, allowing individuals to earn up to 100,000 kroner without paying taxes.
„We are working to bridge the gaps,“ stated Vedum on Monday morning, emphasizing the government’s efforts to reduce income disparities.
The impact of the state budget also extends to Bergen, with specific allocations and initiatives aimed at the city. Furthermore, a significant portion of the budget, amounting to 2.8 billion kroner, has been earmarked to combat crime in the upcoming year, with 2.4 billion allocated to bolster the police force.
Residents of the 212 smallest municipalities will have 25,000 kroner of their student loans forgiven starting in January 2026. Additionally, there is a substantial investment in the defense sector over the coming years, with a total of 135 billion kroner allocated to support Ukraine until 2030.
In a bid to address the financial challenges faced by several municipalities, including Bergen, the government plans to increase transfers to the municipal sector by 6.8 billion kroner. This move aims to provide much-needed relief to local governments grappling with economic difficulties.
The state budget, which encompasses the state’s expenses, estimated revenues, and tax rates for the upcoming year, plays a crucial role in shaping the country’s financial landscape. In 2024, the state’s total revenues were projected at 2.378.3 billion kroner, with total expenses amounting to 1.882.6 billion kroner. The government’s proposal for the state budget and national budget for 2025 will be presented on Monday, October 7th, with the Parliament set to deliberate on the budget proposal until December.
As details continue to unfold, stay tuned for further updates on this evolving story.