Norwegian Finance Minister Jens Stoltenberg defended his first state budget proposal in nearly 30 years, describing it as a “responsible budget” designed to secure Norway’s economy during global uncertainty. Despite facing criticism from both opposition parties and traditional allies, Stoltenberg maintained that his plan strikes the right balance between fiscal discipline and economic growth.
The proposal includes a continued increase in defense spending, reflecting Stoltenberg’s decade of experience as NATO Secretary-General. He projected 2.2% inflation and stable 2.1% unemployment for next year, predicting moderate economic expansion and real wage growth. To fund state programs, the government will withdraw 2.8% of the nation’s Oil Fund—around NOK 580 billion (USD 58 billion)—remaining below the legal ceiling while keeping long-term sustainability in view.
Critics argue that such large withdrawals signal a growing structural deficit and excessive reliance on oil revenue. Stoltenberg countered that strong economic activity, rising household incomes, and low unemployment justify the spending. Still, the budget has drawn fire from coalition partners over proposed cuts to rural incentives, ferry fare reintroductions, and student loan benefits, sparking political tension ahead of parliamentary negotiations.
The Greens and Socialist Left Party also criticized the lack of clear climate and energy transition goals, calling for greater investment in renewable infrastructure and environmental preservation. Stoltenberg acknowledged that tough negotiations lie ahead but insisted the budget “puts stability and security first” as Norway navigates both domestic and international challenges.