Norway is likely to slash the ratio of oil revenue it uses in the 2013 budget, its finance minister said on Sunday, as prospects for the Norwegian economy outshine Europe's and the country's currency reaches multi-year highs against the euro.
Oil-rich Norway, largely sheltered from the global economic crisis, has a spending rule that recommends limiting oil-revenue spending in most years to 4 percent of the value of its $604-billion sovereign wealth fund.
"In 2013, if little happens we will use significantly less than 4 percent from the oil fund," Sigbjoern Johnsen told reporters ahead of government budget negotiations for next year.
"It is important that we hold back on the use of oil money because prospects for the Norwegian economy are good."
Cutting the ratio of oil money Norway spends does not necessarily mean it will spend less oil money in absolute terms, however, as the size of the fund may grow.
Johnsen said the precise figure would be given in October.
"What we can do from the Norwegian government side is to use significantly less than 4 percent of the oil money. And it looks like we will do that in 2012 and 2013."
The relative strength of the Norwegian crown against the euro, which makes larges swathes of the country's industry less competitive than foreign manufacturers, was also a significant factor in the setting of next year's state budget, he added.
"We have seen a strengthening of the crown over a long time. It is an important consideration when we set the parameters for the budget in 2013."
Norway's safe-haven crown currency hit a nine-year high against the euro on Monday, helped by a strong economy, high oil prices and the low risk of central bank intervention.
Johnsen repeated the growth of Norway's mainland economy, which excludes activity from the energy and shipping sectors, would be somewhat lower than the 3.1 percent the government had anticipated, due to lower expected growth in the rest of Europe. An updated estimate for growth will be given in the revised budget in May, he said.