The government expects that municipalities will lose 1.3 billion in unrestricted revenue. Municipalities can not recover the full amount and must cut in services.
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The government will release its revised national budget about half weeks. The budget is used to correct for changes in the economy since the state budget was adopted.
This year, the municipal tax revenue fell sharply. The Norwegian Association (KS) has projected a decline in revenues of 1.9 billion. Mayors across the country require compensation when the revised National submitted on 12 May.
– We expect to lose 100-120 million a decrease in tax revenues in 2015. It’s tough for us, says the mayor of Stavanger Christine Sagen Helgø (H).
KS believes there is great danger of cuts in municipal services to the population.
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