UPDATE 1-Norway raises oil money spending in 2013 budget

(Adds detail)

OSLO, Oct 8 (Reuters) - The Norwegian government plans tospend more of its oil revenues in the election year 2013 than ithas earmarked for 2012, when it expects the economy to growfaster than earlier anticipated, according to a budget draft.

The structural budget deficit, or the shortfall before thecountry's massive oil revenue is accounted for, is expected at125.3 billion Norwegian crowns ($22.12 billion) next year.

That is above the 116.2 billion seen for 2012, according toa document seen by Reuters.

The structural deficit is seen at 5.3 percent of themainland gross domestic product trend, making the budgetslightly more expansive than the 5.2-percent seen for 2012.

But when the oil money is taken into consideration, theprojection turns to a 380 billion crown surplus.

Norway, the world's eighth-largest oil exporter and astandout economy in Europe, usually runs large budget surplusesand uses only a fraction of its oil revenues for budgetpurposes.

In a normal year, up to 4 percent of the $660 billion oilfund is used to plug the budget hole.

Norway is one of the richest countries in the world thanksto its massive oil wealth. Its economy grew by an annual 5percent in the second quarter, the fastest in Europe.

It raised its forecast for 2012 mainland GDP growth to 3.7percent from the May forecast of 2.7 percent, and said it sawnext year's growth at 2.9 percent.

The budget will be officially published at 0800 GMT.($1 = 5.6655 Norwegian crowns)

(Reporting by Joachim Dagenborg and Terje Solsvik, writing byVictoria Klesty)

((victoria.klesty@thomsonreuters.com)(+47 2293 6979)(ReutersMessaging: victoria.klesty.thomsonreuters.com@reuters.net))


Related Tags