The professors asked for new operational rules for the oil fund – Vedum said no
Two economics professors believe that the oil fund’s current operating rules have major flaws, and want new operating rules.
– These funds now cover more than 20 percent of state budget expenditures. If the value of the fund falls sharply, we will be in a very vulnerable situation, Professor Steinar Holden of the University of Oslo (UiO) told NRK.
He recently chaired an advisory committee that recommended politicians change the act’s rules. Currently, the rule is that the government can only use real profits from the fund each year. It is estimated to be around 3 percent.
The new rules should use income from interest-bearing securities and dividends from limited liability companies owned by the fund. Holden believes that such cash flows are more stable than a percentage of the overall fund.
Professor emeritus Knut Anton Mork at NTNU fears the funds will run out within decades under current regulations.
However, Finance Minister Trygve Slagsvold Vedum (Sp) will not carry out a review of the measures at this time.
– I think it’s great that they’re providing input like that because the bottom line is how to finance basic welfare benefits for you and me now without raising taxes, he said.
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