What the national budget means for you
This is what you should know about the proposal for the national budget for 2025: Here are some of the most important issues - and what NITO thinks.
"Downsizing and cuts when we need engineering and technology expertise the most, create a basis for great unrest," says NITO President Trond Markussen.
- Critical competence is not something society gets for free. There is a great need for investment and investment over time, especially if it is to be possible for the government to live up to its ambitions in digitalisation, health, transport and defence.
"There is a very great need for more engineers and technologists. We cannot afford these cuts if we are to create and develop the expertise that Norway needs.
Downsizing and cutbacks when we need engineering and technology expertise the most, create a basis for great unrest
NITO President Trond Markussen.
Digitalisation efforts are not sufficient
NITO believes that the government's digitalisation initiative in the national budget for 2025 is not sufficient to achieve the ambitions of becoming a world leader in digitalisation by 2030.
Although there are positive measures, such as broadband development and support for the Norwegian Digitalisation Agency, the funds are far from enough to ensure a competitive digital infrastructure and the necessary skills development.
- Doesn't take students seriously
"The national budget does not give students the financial security we need in a time of high living costs. We need an increase in student support to ensure equal rights to education for everyone," says leader of NITO students Sofie Strøm Olsen.
She wants to tie the student loan to the National Insurance basic amount (G), and that student support should amount to 1.5 G.
- This will give students an automatic adjustment of student support for times of high inflation.
This will give students an automatic adjustment of student support for times of high inflation
Sofie Strøm Olsen, leader of NITO students
A student grant of 1.5 G would give an annual student support of NOK 186,042. Today, the government proposes a basic loan of NOK 156,090. If student support had been tied to the National Insurance basic amount, students would have received NOK 29,952 more in the 2024/2025 academic year.
More NITO cases in the budget
NITO has provided input on these issues in the national budget.
Removal of employer's additional national insurance contributions
The increased employer's national insurance contributions on salaries above NOK 850,000 per year will be removed from the turn of the year. This had already been announced before the summer. The increased tax has been an extra tax for companies that need a high level of expertise, not least engineers. NITO has been critical of the tax and has worked actively to have it removed.
Increase in the trade union deduction
The trade union deduction is increased by NOK 250 from NOK 8000 to NOK 8250. The increase is in line with NITO's wishes for an annual adjustment of the rate. For NITO members, this will not make any difference, as NITO's membership fee is below both the current and the new proposed rate.
Increased commuter allowance
The Government proposes an increased commuter allowance in the national budget. More engineers commute, and NITO is positive to the fact that the commuter deduction and the kilometre rate for commuting will be increased. Commuting long distances is a burden in itself, so a reduction in the financial burden is positive, even if the adjustments are modest.
Higher exemption card limit
NITO is positive to the government's proposal to raise the limit for what you can earn completely without paying tax from NOK 70,000 to NOK 100,000 per year. This has a positive effect on many students who have small part-time jobs alongside their studies. For income between 100,000 and 200,000, there will also be no ordinary income tax, but here the national insurance contributions of 7.8% kick in.
Positive to increased investment in innovation
NITO is positive about the government's investment in more start-ups. The Entrepreneur Report in 2024 and increased support of NOK 52 million in 2025 will give entrepreneurs better opportunities to develop innovative companies that can contribute to new jobs and strengthened competitiveness. These are important measures to ensure future value creation in Norway, but not enough.
Positive to the continuation of the Green Platform
NITO is positive about the government's continuation of the Green Platform. This is an important tool for promoting a profitable and sustainable green transition in Norwegian industry. The call for proposals of NOK 823.5 million for new, three-year research and innovation projects will provide the industry with resources to develop technologies and solutions that contribute to a green industrial boost.
Too few study places in ICT
100 new study places in ICT is not enough. Norwegian working life needs at least 40,000 more workers with ICT education by 2030. To achieve this, there is a need for about 1700 more study places each year. ICT competence is a prerequisite for finding smarter, more efficient and greener solutions, using new technology and not least artificial intelligence, and at the same time ensuring high value creation to maintain and develop the welfare society.
Science education in primary and lower secondary school
The Government proposes to strengthen science education in primary and lower secondary school with a national investment in mathematics and science with NOK 15 million and NOK 10 million respectively. NITO is pleased that the government recognizes the need for a stronger focus on the natural sciences, but is at the same time concerned that this is not enough. The international surveys show a serious decline in science subjects. We need more hours in science in lower secondary school. NITO believes that the number of hours must be increased by 50% in order for us to be on a par with Sweden and Finland.
Industry program
The Ministry proposes NOK 15 million to continue the industry programme for the manufacturing and construction industry for three more years. The Ministry will establish two new industry programmes – one for the health and care sector and one for the solar power industry. The need for restructuring and competence development in the energy industry is great in both oil, gas and renewables. NITO believes that the focus on competence development in this sector must be strengthened beyond the solar power industry.
VAT cuts do not improve municipal finances
The government's cuts in VAT on water and sewage in the national budget for 2025 are good for consumers, but do not help municipal finances. There are many old pipes in the ground that need to be replaced. It will have a cost. NITO believes that the government must contribute to speeding up the work of replacing the old pipeline network, for example by providing the municipalities with interest-free loans.
Offshore wind
Succeeding with floating offshore wind will be crucial in the energy transition for both Norway and Europe. Floating offshore wind is also crucial for establishing offshore wind as a major Norwegian export industry It is therefore important to get started with larger projects, which can contribute to standardization and increased economies of scale in the supply chain, and thus help bring costs down.
It is important that the Government and the Storting contribute with predictability and secure funding for the first floating offshore wind projects, and that we are able to announce and award the first offshore wind areas on Utsira Nord as soon as possible. It is positive that the government will secure funding for the first large-scale floating offshore wind project.
However, the offshore wind development on Utsira Nord has been reduced from two to one project. NITO fears that this is not sufficient for the industrialization of floating offshore wind. Going forward, concrete steps must be taken to support the long-term investment in floating offshore wind. Future rounds should be concretized now – it is important to ensure predictability and industrial development. Conclusion: We need to focus more aggressively – "step-by-step and responsible" is positive, but not sufficient.
Sustainability in Health: Make Wise Choices campaign
NITO BFI is disappointed that the Make Wise Choices campaign has not been secured funding through a fixed annual allocation in the national budget for 2025. The campaign aims to reduce unnecessary sampling and analysis, overdiagnosis and overtreatment.
It is one of many measures to overcome waiting times in the health sector. The Government should have set aside funds to support initiatives that promote a scientifically justified reduction in medical overactivity. This would have contributed to better patient safety and more efficient use of health resources.
NITO BFI is one of several organizations that are affiliated with this campaign.