According to Norwegian daily, Aftenposten, the increase means that each citizen in Norway have around 590,000 kroner sharing in the fund.
– It's kind of a dream, “said Finance Minister Sigbjørn Johnsen (Ap) to the newspaper and he maintained Oil Fund has provided Norway with additional opportunities and a faster expansion of welfare.
Ministry of Finance noted the Pension Fund's value has doubled in ten years. -Adjusted for inflation, it will mean that each of us have inherited an oil fortune of 920,000 Kroner in 2010-value. Yet, Johnson warned it is not appropriate to hand out money to people.
– This money is used to fund the day care and elderly care. This gives people a share of the money. Wealth belongs to the Norwegian people, and there is a common agreement that the community's political bodies are to distribute it, ” said Johnson.
What is Norwegian Pension Fund?
Government Pension Fund was established in 1990 as a fiscal instrument to ensure long-term considerations in the use of petroleum revenues.
NBIM manages the fund on behalf of the Finance Ministry, which stands as the formal owner of the fund on behalf of the Norwegian people. The Ministry determines the fund's investment strategy on the advice of NBIM and discussions in the Parliament.
The Ministry regularly transfer capital from the government petroleum revenues to the fund. The funds are invested exclusively abroad, to prevent the mainland economy from overheating and to protect it from the effects of fluctuating oil prices. The fund invests in international equities and fixed income instruments. It also has a mandate to invest in real estate. The goal is to have diversified investments that ensure a good spread of risk and highest possible return.