National Budget 2026: "Critical for local preparedness"

The Government is planning an increase of NOK 4.2 billion in the local government sector's free revenues next year in the national budget for 2026. However, adjusted for the expenditure on population changes, this only gives a total increase in room for manoeuvre of NOK 1.3 billion.  

Small change

"This is small change for the municipalities in a time of crisis. More than half of Norwegian municipalities are already struggling to make ends meet. The result is that investments in critical infrastructure cannot be prioritised. This is serious," says NITO President Kjetil Lein. 

The municipalities are responsible for some of the most important social tasks, including the operation, maintenance and development of water and wastewater systems and other physical infrastructure.   

"We need a national boost for critical infrastructure, and especially water and sewerage, and at a time when we are facing climate change with increased precipitation and extreme weather, this is absolutely necessary. Many municipalities already have a large maintenance backlog, while cost growth and skills shortages make it even more difficult to carry out necessary investments," says the NITO president.  

Risk to societal security

According to KS, 2024 marked a bottom year for Norwegian municipal finances with 58 percent of the country's municipalities in deficit. It has been almost 40 years since the result was as weak. 

"It is serious that the government does not see that municipal finances and social preparedness are connected. When the municipalities are not prioritized, it poses a risk to society's security and future preparedness. The municipalities are the first line of local preparedness, they are the ones who face the crises first, and without the necessary resources, the entire society's preparedness is weakened," says Kjetil Lein.