How Norway’s budget masks a 17% decline in real fiscal spending on aid

Norfund is the main winner in the Norwegian aid budget proposal for next year, where an increasing share is reallocation of capital at a minor fiscal cost. Overall aid drops to 0.93 per cent of GNI next year. A Development Today analysis shows that the fiscal cost of aid next year will be NOK 10 billion lower than it was in 2023. In the government’s internal budget fight, the Finance Ministry achieves a win-win, while Development Minister Åsmund Aukrust takes a hit.