SSB presented its calculations for the Norwegian economy yesterday. It was assumed that fiscal policy is still based on the guidelines, but personal taxation is slightly reduced compared with the level in 2013.
According to Dagens Næringsliv, SSB predicts that there will not be any influence on the fiscal policy that limits the annual use of the oil money to 4 percent, even if there are tax cuts of around 15 billion NOK over the next four years with a change of government.
The rationale behind the prediction is the oil fund’s faster growwith a substantially more money to spend in the state budget.
Researcher Torbjørn Eika in SSB says, however, a tax cut may have effects on household disposable income and the housing market. Tax cuts will provide households 1.6 percent more money and 4.3 percent higher housing prices in 2020.