The Norwegian government has proposed a significant increase in funding for municipalities in its latest state budget, aiming to address financial challenges faced by local governments.

The budget, presented by Finance Minister Trygve Slagsvold Vedum, includes an additional billion kroner for municipalities, compared to earlier projections.

This move is expected to benefit regions like Vestfold and Telemark, where free income for municipalities is set to rise by over a billion kroner and nearly 800 million kroner, respectively.

Despite the increased funding, State Administrator Trond Rønningen emphasizes the need for municipalities to prioritize restructuring to ensure long-term financial stability.

He warns that even those with current reserves must manage expenses carefully to avoid future financial constraints.

The budget reflects the government's commitment to supporting local communities while encouraging prudent financial management.