OECD Economic Surveys: Norway 2012

Table of contents
Basic statistics of Norway (2010)
Executive summary
Key recommendations
Assessment and recommendations
	Protected from the worst of the crisis by petroleum wealth and a sound macroeconomic policy framework, Norway continues to enjoy high levels of income and well-being
		Figure 1. Gini coefficients before and after taxes and transfers
	I. Macroeconomic policies to support sustainable growth
		The economy has been resilient despite the high level of uncertainty in the euro area
			Table 1. Main macroeconomic and financial indicators
			Box 1. The Norwegian macroeconomic policy framework
		Fiscal policy continues to benefit from prudent management of petroleum revenues
			Table 2. Budget deficits 2001-12
			Figure 2. Value of the Government Pension Fund Global
			Figure 3. Immigration, wages and unemployment
		Public accountability in fiscal policy
		Monetary policy credibility allows interest rates to be kept low
			Figure 4. Cyclical developments
		Real estate prices have continued to grow strongly
			Figure 5. House prices and household debt in selected OECD countries
			Figure 6. Vulnerabilities in the Norwegian banking sector
			Box 2. Summary of recommendations on macroeconomic policy
	II. Labour market policies
		Public sector employment helped to sustain the labour market through the recession
			Figure 7. Employment in the private and public sector
			Figure 8. Labour force participation rates1 in 2010: an international comparison
		Reforms in the sickness and disability schemes, and in public sector pensions, still fall short of what is needed
			Figure 9. Population structure, 2010
			Box 3. Summary of recommendations on labour-market policy
	III. Raising public spending efficiency
		Petroleum wealth allows high public expenditure
			Figure 10. General government total outlays1 in 2010 or latest year available
		The budgetary planning horizon
		Monitoring of public expenditure “output” has improved
		Regional policy is popular, but output is hard to measure, although its cost is becoming easier to identify
			Table 3. Budgeting for regional policy
		An array of good public expenditure assessment tools could be used more coherently
			Box 4. Summary of recommendations on value for money and public spending
	IV. Reform of capital taxation
		Progressive, broadly-based labour income taxation is a feature of Norway’s dual income tax system
		Taxation of savings and wealth pursues many aims, often ineffectively
			Figure 11. Household wealth and debt, second quarter 2009
			Table 4. Effective tax rates on the real income from different assets
		Re-alignment of effective tax rates is feasible
		Norway’s wealth tax raises little revenue, but imposes very high marginal effective tax rates on capital income
		The tax base of the gift and inheritance tax should be broadened
			Figure 12. Revenue from gift and inheritance taxation, 20101
			Box 5. Summary of recommendations on the taxation of savings and wealth
	Bibliography
	Annex A1. Taking stock of structural reforms
Chapter 1. Value for money and public spending
	Figure 1.1. General government expenditures1 as a percentage of GDP
	Figure 1.2. Production costs of public spending as a percentage of GDP, 20101
	Figure 1.3. Employment in general government and public corporations as percentage of the labour force
	Overall budgeting and expenditure planning
		Multi-annual budgeting could improve expenditure planning
	Aiming at value for money
		A need for greater transparency? The case of regional policy
			Table 1.1. Budgeting for regional policy
		Incentives for efficiency
			Figure 1.4. Inter-municipality comparisons of social welfare indicators, 2009
			Figure 1.5. Ratio of aggregate tax administration costs per 100 units of net revenue collection
		Incentives for efficiency: using the private sector as a benchmark
			Figure 1.6. Expenditure on general government outsourcing
		Expenditure assessment tools
			Figure 1.7. Increasing use of a regulatory oversight body at the central government level (1998, 2005 and 2008)
			Table 1.2. Aspects of government regulatory oversight authority (2008)
		Overall analysis of public spending
			Box 1.1. Recommendations on value for money in public spending
	Notes
	Bibliography
Chapter 2. Tax reform in Norway: A focus on capital taxation
	Figure 2.1. Government tax receipts
	Box 2.1. Main characteristics of the Norwegian tax system
		Table 2.1. Tax revenue by main tax category, 2010
	Main features of the dual income tax system
		Figure 2.2. Average taxable gross financial capital per household, 2009
		Box 2.2. Why the design of capital taxation matters for efficiency and growth
		Figure 2.3. Mainland revenue from capital taxation, 2008
		Table 2.2. Categories of capital taxation
	The taxation of capital income and wealth
		Investments in housing are heavily favoured by the tax system
			Table 2.3. Tax treatment of asset classes
			Table 2.4. Effective tax rates on the real income from different assets
			Figure 2.4. Household wealth and debt, second quarter 2009
			Figure 2.5. Valuation in the base of the wealth tax
		Effective tax rates on people paying the wealth tax are very high, sometimes exceeding 100%
			Figure 2.6. Total tax wedge on deferred consumption (for labour income earned in year 0)
			Figure 2.7. Recurrent taxes on net wealth, 20101
	Gift and inheritance taxation
		Figure 2.8. Revenue from gift and inheritance taxation, 2010
	Corporate income taxation
		Table 2.5. Marginal labour income tax rates
		Table 2.6. Statutory tax rates for a Norwegian resident investing in Norwegian equity
		Figure 2.9. Non-oil business investment in international comparison
		Figure 2.10. Statutory corporate income tax rate, 2011
		Table 2.7. Statutory tax rates on the normal return of investing in Norway
	Local property taxation
		Table 2.8. Use of the local property tax, 2010
	The stamp duty on property transactions
	The economic consequences of the recommended reform measures
		The tax policy recommendations are conducive to enhanced economic growth and efficiency
			Box 2.3. Summary of recommendations on capital taxation
			Table 2.9. Budgetary and redistributive consequences of possible reform measures
		Higher taxation of housing is likely to reduce household debt but also housing affordability
	Notes
	Bibliography
	Annex 2.A1. Effective tax rates on savings in different asset classes
		Table 2.A1.1. Effective tax rates on the real income from different assets under alternative assumptions