A mission from the International Monetary Fund (IMF) presented its views on the Norwegian economy and Norwegian economic policy. The mission’s report is supportive of the government’s fiscal policy and suggests that changes to the Norwegian tax system could further boost both productivity and economic growth.
The mission concludes that the government’s fiscal policy has been prudent, and that there is ample scope within the fiscal framework to support the growth should the economy soften significantly.
– I have noted the mission’s views, says Finance Minister Siv Jensen. At the same time I am also very concerned with how oil money is put to use. We should use it in a way that helps increase the productivity and growth potential of the economy.
The IMF’s mission team argues that a more neutral tax system can promote efficiency and growth and that a simpler tax system with fewer exemptions and preferences can create fiscal space for a reduction in overall tax rates.
– I agree with this, Ms. Jensen says. But I would like to add that the scope for tax reductions can be increased even further by also keeping expenditure in check.
To read the full press release, please visit regjeringen.no here.