OSLO (AFP) - Norway's center-right government presented a draft 2005 budget that contained a comfortable surplus thanks to the country's massive energy resources.
The budget surplus is expected to reach 130.2 billion kroner (19.3 billion dollars, 15.7 billion euros).
Excluding oil revenues however, Norway's proposed budget shows a structural deficit of 66.4 billion kroner, Finance Minister Per-Kristian Foss said.
As in previous years, the government balanced the budget by dipping into the Government Petroleum Fund, which consists of receipts from Norway's huge oil production and which is destined to finance future pensions of the country's aging population.
In 2005, net cash flow from petroleum activities in Norway, the world's third largest oil exporter after Saudi Arabia and Russia, is expected to reach 204.5 billion kroner.
Once the 74.3 billion kroner needed to balance the budget have been subtracted, the government expects the Petroleum Fund to grow by 169.7 billion kroner in 2005, including interest, to a total 1,244 billion kroner by the end of the year.
The government is basing its forecast on a predicted average oil price of 230 kroner (34 dollars) a barrel, down from 250 kroner (37 dollars) this year.
In 2008, the government predicts a barrel of oil will fetch 190 kroner.
"The Norwegian economy has recovered after several years of weak growth, loss of competitivity and rising unemployment," Foss said as he presented the budget bill.
The government based its budget on growth forecasts of 2.4 percent this year and 3.1 percent next year. Mainland gross domestic product, excluding oil, gas and shipping, is expected to rise by 3.2 percent this year and by 3.1 percent next year.
Norway's minority coalition government, which holds only 62 of 165 seats in parliament, will have to enter into negotiations with opposition parties to pass its budget proposal, and is expected to be forced to make a number of changes before it goes through.