The Norwegian Center Party has unveiled an alternative state budget proposing significant government cuts and reprioritizations totaling between 15 and 20 billion kroner. Party leader Trygve Slagsvold Vedum announced the plan alongside financial spokesperson Bjørn Arild Gram, emphasizing their goal to streamline government bureaucracy and redirect funds toward everyday services.
Vedum stated their approach focuses on trimming top-level government spending. He explained this would free up resources for schools, healthcare, and local welfare services. The proposal comes as budget negotiations approach with the Labor Party and three other government partners.
The Center Party's plan stands in contrast to last year's budget discussions. Then, the Socialist Left Party secured only 8 billion kroner in reprioritizations when Vedum himself served as finance minister.
A central element involves cutting 4 billion kroner from government bureaucracy and consultant use across all ministries. The Climate and Environment Department faces the heaviest reductions at nearly 3.5 billion kroner. Meanwhile, the Agriculture Department would see minimal cuts of just 21.6 million kroner.
When questioned about this disparity, Vedum defended the approach. He noted the Climate Department has nearly doubled in size over recent parliamentary terms. The Agriculture Department has already undergone substantial cuts during periods when the Center Party controlled that ministry.
The proposal includes controversial cuts to the Office of the Auditor General. This comes the same day that office released a report contributing to the NAV director's resignation. Vedum argues the auditor has taken on an increasingly political role and needs to become more efficient.
Tax reductions form another key component. The Center Party wants to cut food VAT from 15% to 10%, a measure that would cost about 9 billion kroner annually. They also propose lower fuel taxes, increased travel deductions, and income tax cuts for those earning under 1 million kroner yearly.
Additional spending priorities include 6.5 billion kroner for municipal economies, half a billion for police, and 1.2 billion extra for hospitals. The party also wants continued broadband expansion and reduced fast boat prices.
Financial markets express concern about the potential economic impact. DNB Carnegie chief economist Kjersti Haugland warned that increased government spending could keep interest rates at current elevated levels longer. She noted the obvious risk that the 2026 budget will exceed original October plans.
Gram remains unconcerned about interest rate implications. He acknowledged challenging negotiations with five different parties but emphasized the Center Party's commitment to responsible fiscal management.
The budget proposal reflects the Center Party's traditional focus on rural communities and agricultural interests. Their protection of agriculture funding while targeting environmental departments shows their political priorities clearly. This positioning matters as the party has struggled in recent polls.
Budget negotiations begin Friday, with all government partner parties presenting their alternative budgets this week. Combined demands from the four cooperation parties are expected to exceed 40 billion kroner in reprioritizations.
Political observers note the Center Party faces a difficult balancing act. They must demonstrate influence to their base while maintaining government stability. Their alternative budget serves as both a negotiation starting point and a statement of political identity ahead of future elections.