~ Budgets give freedom within a decided cash limit · Partsradet

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Budgets give freedom within a decided cash limit

Since 1994, the Government (ruling parties) has been providing each agency with an annual appropriation that normally cannot be exceeded. In practice, the money is delivered as a lump sum and is not divided into specified line items for staff, facilities, etc.

When recalculating the annual appropriations, the Government compensates the agencies for general price increases for labour costs, premises, and other administrative costs. But labour cost increases, which are calculated from the index for white-collar workers in the private sector, are reduced by private sector productivity increases.

Thus, parliament and the Government carry full responsibility for the budget and press for raised productivity, but leave the social partners responsible for wage formation.

Published: 2015-04-15

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