Oct 16, 2025
Norway Plans to Increase Expenditure from Its $2 Trillion Oil Fund in the 2026 Budget.
On Wednesday, the Norwegian government proposed increased spending from the country's oil fund, the largest sovereign wealth fund globally, in its budget for next year, as outlined in the draft budget by the Labor Party, which recently secured a second term.
Jonas Gahr Støre's Labor government will need support from coalition partners to pass the bill in Parliament.
The 2026 budget plans to allocate $57.4 billion (579 billion Norwegian crowns) from the Government Pension Fund Global (GPFG), known as Norway’s oil fund due to its origins in oil and gas revenues.
This amount is higher than last year's $54.6 billion (550.6 billion crowns) expenditure and represents 2.8% of the fund's value.
Withdrawals from Norway’s fund are governed by a fiscal rule, which states that spending must average the expected real return on the fund, currently estimated at 3%.
Norway’s fund, with assets worth $2 trillion, holds about 1.5% of all publicly listed companies worldwide. Established in the 1990s, it supports Norway's generous welfare policies while reducing direct reliance on oil and gas revenues. State income from the substantial petroleum industry is directed into the fund, which is invested in equities, property, and fixed-income markets globally.
In the draft for Norway’s 2026 budget, the government estimates a net cash flow of $65.8 billion (664 billion crowns) from petroleum activities this year, with a projection of about $51.6 billion (521 billion crowns) for 2026.
Energy Minister Terje Aasland remarked that revenues from the petroleum sector are crucial for funding the welfare state, emphasizing the ongoing global and European demand for oil and gas for decades. He stressed the importance of Norway continuing to develop its continental shelf to remain a stable energy supplier and called for a stable regulatory framework and high levels of exploration activity.
Jonas Gahr Støre's Labor government will need support from coalition partners to pass the bill in Parliament.
The 2026 budget plans to allocate $57.4 billion (579 billion Norwegian crowns) from the Government Pension Fund Global (GPFG), known as Norway’s oil fund due to its origins in oil and gas revenues.
This amount is higher than last year's $54.6 billion (550.6 billion crowns) expenditure and represents 2.8% of the fund's value.
Withdrawals from Norway’s fund are governed by a fiscal rule, which states that spending must average the expected real return on the fund, currently estimated at 3%.
Norway’s fund, with assets worth $2 trillion, holds about 1.5% of all publicly listed companies worldwide. Established in the 1990s, it supports Norway's generous welfare policies while reducing direct reliance on oil and gas revenues. State income from the substantial petroleum industry is directed into the fund, which is invested in equities, property, and fixed-income markets globally.
In the draft for Norway’s 2026 budget, the government estimates a net cash flow of $65.8 billion (664 billion crowns) from petroleum activities this year, with a projection of about $51.6 billion (521 billion crowns) for 2026.
Energy Minister Terje Aasland remarked that revenues from the petroleum sector are crucial for funding the welfare state, emphasizing the ongoing global and European demand for oil and gas for decades. He stressed the importance of Norway continuing to develop its continental shelf to remain a stable energy supplier and called for a stable regulatory framework and high levels of exploration activity.