Oireachtas Joint and Select Committees

Wednesday, 31 May 2023

Committee on Budgetary Oversight

Sovereign Wealth Funds: Discussion (Resumed)

Mr. Svein Gjedrem:

I guess so. In real terms, it has had a major impact on economic development and stability in the domestic economy. If the fiscal budget had been adjusted along with fluctuating oil incomes, as to some degree did happen in the 1970s and 1980s, we would not have had the kind of stability in our economy that we actually have had. Of course, we have a strong fiscal position. The government is in a position where there is not a great need to issue government bonds. This is because we have all these assets, so we do not have to borrow so much. We are financing the fiscal deficit with the general transfer from the fund. The interest rates on Norwegian government bonds are very low. The most important part is the stabilising of the real economy because of this fund.