A cross-party budget agreement in Oslo has secured a parliamentary majority, delivering immediate financial relief to Norwegian households. The deal between the Labour Party, the Socialist Left, the Centre Party, the Red Party, and the Green Party reverses several proposed tax hikes and increases welfare spending. The agreement directly impacts family finances, energy costs, and key industries from fisheries to farming.
Planned increases in gasoline and diesel taxes have been scrapped. The government's proposed 80-øre per liter gasoline tax hike is dropped entirely. For diesel, a planned increase of 1.175 kroner per liter is offset by a cut to the road usage charge. The result is stable pump prices. A new subsidy will also reduce monthly public transport pass costs by approximately 100 kroner.
Electricity tax cuts will be smaller than initially planned. The reduction will be 2.95 øre per kWh less, setting the new rate at 7.13 øre/kWh. This change saves the coalition 1.45 billion kroner. The tax threshold for electric vehicles will also be lowered. The VAT exemption cap drops to 300,000 kroner next year, down from 500,000. Full VAT on electric cars is now delayed until 2028.
Family welfare sees notable boosts. Child benefit payments will be price-adjusted and increased from February. A proposed cut to the one-time birth grant, from 92,648 kroner to 60,000 kroner, has been reversed. Free after-school care for fourth graders in disadvantaged areas will continue, and staffing in kindergartens will be strengthened.
Healthcare costs are addressed. A planned 128-kroner increase to the patient co-payment ceiling has been dropped. Work on a dental health reform begins, with state reimbursement rates for treatments rising by 10 percent to reduce out-of-pocket costs.
Substantial tax relief targets key vocational sectors and commuters. The commuter travel deduction threshold is lowered to 12,000 kroner, with a rate of 1.90 kr/km and an upper limit of 120,000 kroner. The Centre Party claims this gives most commuters at least 800 kroner in tax relief. A commuter between Kristiansand and Arendal would save 981 kroner.
Fishermen see their special tax deduction raised to 160,000 kroner. The seafarer's deduction increases to 86,300 kroner. In agriculture, the independent deduction within the farming allowance rises to 99,600 kroner, with a maximum allowance of 208,900 kroner. Reindeer herding deductions follow the agricultural model.
Political leaders highlighted their priorities. Centre Party leader Trygve Slagsvold Vedum said the deal nullifies Labour's fuel tax increases and reduces taxes for commuters. He stated it is important for household budgets and for stimulating work. Socialist Left finance spokesperson Marthe Hammer emphasized strengthening welfare, including free after-school care and kindergarten staffing. Red Party finance spokesperson Mímir Kristjánsson expressed satisfaction with the impact on everyday household economics. Labour's parliamentary leader Tonje Brenna noted the delivery on promises for better household finances through secure economic management.
The budget's passage reflects the delicate balance of Norway's minority government. It leans on left-wing and centrist support to pass fiscal policy. The emphasis on reversing proposed cuts and boosting deductions for traditional industries like fishing and farming signals a political effort to address cost-of-living pressures across urban and rural Norway. The decisions on electric vehicle taxation also reveal the ongoing calibration of Norway's ambitious green transition against state revenue needs.