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UPDATE 1-Norway raises oil money spending in 2013 budget

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

The structural budget deficit, or the shortfall before the country's massive oil revenue is accounted for, is expected at 125.3 billion Norwegian crowns ($22.12 billion) next year.

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

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

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

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

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

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

It raised its forecast for 2012 mainland GDP growth to 3.7 percent from the May forecast of 2.7 percent, and said it saw next 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 by Victoria Klesty)

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

Keywords: NORWAY BUDGET/