The Norwegian government receives substantial revenues from petroleum activities, both as revenues in NOK from oil taxes and revenues in foreign currency from the government's own petroleum activities via the State's Direct Financial Interest (SDFI). The government spends a portion of total petroleum revenues every year via the central government budget. The remainder is transferred to the Government Pension Fund Global (GPFG) and is invested in foreign securities.
In recent years, the government's net revenues from the petroleum sector have declined somewhat. At the same time, slightly more petroleum revenues have been spent each year over the central government budget in line with the fiscal rule. As a result, the transfers to the GPFG have shown a decline. As gas and oil resources are depleted, it must be expected that the government's revenues from petroleum activities will decline. The fiscal rule has been designed to allow the real return on the GPFG to finance the structural non-oil fiscal deficit when petroleum revenues are no longer sufficient to cover the fiscal deficit.
The SDFI s foreign currency revenues are transferred every day via a foreign exchange portfolio in
Most Popular Stories
- Paniagua Wins Grand Prize in Young Artists Program
- Cable TV Not Going Away, Says Cable TV
- Yaris Adds French Flair for US Market
- German Intelligence Blames Ukraine Rebels for MH17
- Sub Hunt Brings Cold War Chill Back to Baltic
- Turkey to Help Kurds Reach Fight in Kobani
- IBM to Pay Big to Unload Chip Division
- Perez Leads Push for Obama's Job Proposals
- ISIS Seeks to Expand Terror War
- Kerry Cites Moral Need in Weapons Air Drop