Norway’s government presented the 2025 Budget Bill, on 7 October 2024, with the aim to enhance the financial well-being of Norwegians, strengthen Norway’s preparedness against war and crime, and reduce social and geographical disparities.
According to Norway’s Minister of Finance Trygve Slagsvold Vedum, the National Budget for 2025 prioritises extensive resources for defence and the fight against gangs and criminal networks. The Government is also implementing new measures to reduce hospital waiting times and to give people more financial security.
The Government’s goal is to enhance the financial well-being of its citizens by establishing a budget that ensures security for both the population and the nation, ultimately fostering the development of all of Norway.
As a result, the government prioritised fostering financial security and equitable growth nationwide by implementing measures such as energy assistance, tax reductions, and enhanced welfare programmes. The government is implementing targeted measures to reduce the living costs of both Norwegian households and those in society who are disadvantaged.
The tax measures include:
- Increase the lower threshold for personal National Insurance contributions to NOK 100,000;
- Lowering the VAT on water and sewage charges, this measure is expected to provide an average tax relief of NOK 1,000 per year for a 120 m² home;
- Maintain the maximum kindergarten fee at NOK 2,000 per month nationwide;
- A reduced fee of NOK 1,500 per month in the least central municipalities, and ree kindergarten in Nord-Troms and Finnmark;
- Income from wages and benefits below NOK 200,000 are tax-exempt;
- Uphold 12 hours of free wraparound care for pupils in Years 1-3.
