OSLO: A dip oil tax revenue has led to Norway’s first budget deficit in 20 years. Tax receipts from the industry fell by 50% in the second quarter to NOK23billion ($2.8billion), according to Statistics Norway.
The decrease was part of an overall tax revenue dip of 8.3%. Statistics Norway said: “Reduced income from petroleum activities in the form of tax and withdrawals from the State’s Direct Financial Interest (SDFI) continues to explain the reduction in overall income.”
The country’s overall income fell 2% to NOK328billion, however total spend was up 8% to NOK333billion. The NOK5billion shortfall is Norway’s first deficit in 20 years.
Despite the budget hole, Norway’s house prices made a comeback in August. Norges Bank had forecast annual house price growth of 7.3 percent for the third quarter.
