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What would happen if the norwegian government spent the whole fund?
by onesandofgrain 8mo ago
What would happen if the norwegian government spent the whole fund?
- magicalhippo 8mo agoIf they spent it abroad on say Dutch tulips, so it didn't affect the Norwegian economy directly then short term we'd have to significantly cut spending. While there's a rule in place to withdraw less than 3% of the value to ensure long-term survival of the fund, due to its size that now constitutes a significant part of the national budget. For 2026 they'll be withdrawing 2.9%, which translates to about 580B NOK, or $58B USD. However the total spending in the 2026 national budget is 2200B NOK, or $220B USD. So the fund covers about 26% of the budget for 2026. Lets just say it would be very painful if we suddenly did not have that fund. If they liquidated it today and put it all in a bank account and wanted to spend it all inside the country, they could fund over 10 years worth of 2026 national budgets in its entirety.