The costs associated with the coronavirus pandemic incurred by the municipal sector this year are estimated at 9,3 billion.
He estimates that the coronavirus outbreak cost municipalities and provinces a total of NOK 9,3 billion in the first half of 2021. This is equal to the compensation the state has awarded in the past six months.
- Throughout the crisis, the government made it clear that we would defend the municipal sector. The working group's estimates are in line with the allocations allocated to the first half of the state budget to compensate municipalities and provinces for the costs of the pandemic, says Local Government and Modernization Minister Nikolai Astrup.
The municipal sector (SC) stresses the need for full compensationy
The working group estimates the financial implications at around NOK 6,7 billion for municipalities and NOK 2,6 billion for provinces.
- The municipal sector (SC) stresses the need for full compensation for municipalities and provinces to avoid large cuts in the service offer for residents. So far this year it has come true and we are happy about it. It is very important that further losses are guaranteed to be compensated both until the end of the year and possibly beyond when it becomes necessary - says the president of the management board of KS, Bjørn Arild Gram.
In communes, the highest expenses were incurred by health and care services. About two-thirds of the expenditure went on salaries, testing, infection tracking, infection control equipment, and immunization. They also faced heavy isolation and quarantine costs. Primary school and kindergarten cover 20 percent. expenses. The rest is broken down into culture, sports, and some other services as well.
In the case of poviat municipalities, the economic consequences of the virus epidemic are mainly related to reduced revenues from tickets in public transport.
The municipal sector can be sure that we will continue to defend ourselvesć
- The municipalities have done a great job. They are at the forefront of testing, infection detection and vaccination while providing good services to people and businesses. So far, the government has committed an additional NOK 18 billion to the municipal sector in 2020 and NOK 23 billion to compensation and support measures in 2021. The municipal sector can be sure that we will continue to defend ourselves, says Astrup.
By 1 April 2022, the Working Party will submit a final report on the situation in 2021.
While vaccination has gained momentum, we don't know how the pandemic will continue to develop. Recent weeks have shown that the uncertainty is still high. That is why we extended the mandate of the working group until spring 2022, says Astrup.
