Norwegian municipalities are grappling with a severe financial crisis, prompting a crisis meeting called by Municipal and District Minister Erling Sande.

The meeting follows warnings from the Norwegian Association of Local and Regional Authorities (KS) about critical municipal finances, exacerbated by the recent state budget proposal.

Despite proposed increases in municipal income, KS argues that the funds are insufficient to cover essential services.

The economic strain is attributed to rising costs in health and social care, an aging population, and unexpected expenses such as refugee resettlement.

Many municipalities report significant budget overruns, with a projected overspend of 10 billion kroner in 2024. This financial strain threatens the provision of basic services, leaving local leaders and citizens deeply concerned about the future.