Improved results in 2009

Preliminary figures for 2009 show a strengthening of the municipalities’ finances compared to 2008. Net operating surplus for the municipalities is estimated at 2.8 percent in 2009 compared to 0 percent in 2008.

Preliminary figures for 2009 estimate that gross operating surplus was about NOK 3.4 billion for all the municipalities combined. The estimations show that the municipalities’ gross operating revenue was approximately NOK 287 billion in 2009, whereas the gross operating expenditure was about NOK 284 billion. The gross surplus is estimated at 1.2 percent of the gross revenues in 2009 compared to 0.4 percent in 2008. This growth is an indication that the gross revenue has increased more than the gross expenditure.

The net operating surplus for the Norwegian municipalities increased from minus NOK 0.1 billion in 2008 to about NOK 8 billion in 2009. The net operating surplus is estimated at 2.8 per cent of the gross operating revenues, compared with 0 percent in 2008.

Investing and financing

The estimates for the gross investment expenditures for 2009 indicate that the municipalities in total invested NOK 37.3 billion, compared with NOK 34.1 billion in 2008. The preliminary figures show that the deficit before loans and allocations decreased from NOK 20.3 billion in 2008 to NOK 13.6 billion in 2009.

Estimations also indicate that the municipalities’ investments have been financed by the use of applied loans, which have also increased by nearly NOK 4 billion. Financing of investments by applied loans as a percentage of the gross capital expenditure was approximately 63.5 percent in 2009, compared with 58 percent in 2008. The municipalities withdrew NOK 8 billion of existing funds in 2008, compared to NOK 2 billion allocated to funds in 2009.

Huge increase in net interest

The municipalities’ net finance revenue has increased significantly in 2009. This is as a result of the profit incurred from the financial investments and the lower interest levels. Municipalities must register all realized and unrealized losses or profit resulting from financial investments in the operational accounts. The preliminary figures for 2009 show net finance revenue of about NOK 2.5 billion, compared with net interest expenditure of NOK 3 billion in 2008. The net finance revenue has thus increased by approximately NOK 5.5 billion since 2008. The rise in the stock markets has affected the municipalities’ net surplus in a clear positive direction.

Production of services

Administration, kindergartens, primary schools and nursing and care services are the main service areas in the municipalities. The municipalities’ expenditure on administration was NOK 19.6 billion in 2009, while expenditure for kindergartens, primary schools and care services amounted to a total of NOK 32.9, NOK 60.1 and NOK 74.7 billion respectively.

Source: Statistics Norway

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