| Norway cut its growth forecast on Wednesday, citing lower oil prices and investments, and said it may lift a cap on how much of the country's $850 billion sovereign wealth fund it can spend each year. In its first budget since taking power last year, the centre-right government of Prime Minister Erna Solberg said it will spend 3 percent of the fund's value in 2015, up from 2.8 percent in 2014, using the money to pay for tax cuts.
That is still below the 4 percent cap on spending from the fund, into which revenues from oil, Norway's biggest industry, are routed. But Finance Minister Siv Jensen said she was appointing a commission to examine whether the rule, for long a sacred cow of fiscal policy, needs to be changed...............................................Full Article: Source
|