Norges Idrettshøgskole (Norway) A tight budget for the NIH
In 2022, NIH budgeted more than NOK 20 million. in deficit. Next year’s figures look somewhat better and are mainly due to good results in education (profit allocation), and compensation for additional costs related to rent from Statbygg.
In the national budget, compensation for wage and price inflation of 3 per cent has been included, which for NIH corresponds to NOK +7.1 million. in your budget. Three per cent inflation implies a halving in relation to inflation this year, and assumes that electricity prices will normalise next year.
For the higher education sector, the rationalisation cut scheme (ABE) has been removed, while other cuts have increased:
- In the budget for 2022, NIH received NOK 1.1 million in ABE cuts . This has been removed in the 2023 budget.
- Cuts for expected permanent changes in travel habits have been increased from NOK 0.3 million for NIH. to NOK 0.8 million.
- Cuts/confiscation to finance joint ventures in the sector have been increased from NOK 0.2 million for NIH. to NOK 1.3 million.
NIH has also received a downward adjustment of study places, which entails a reduction in the allocation of NOK 1 million. In total, the NIH thus receives 3.1 million in cuts. These cuts are compensated by increases in the budget:
- Good results in education give NOK 4.4 million. More in increased profit allocation
- An additional NOK 10 million has been included in the budget. in compensation for increased costs in connection with the business transfer to Statbygg (annual rental cost of NOK 45 million). This is in addition to the NOK 20 million. The NIH received compensation in the 2022 state budget.
The above cuts and additions give a total budget of NOK 256 million, compared with NOK 238 million. in 2022.
The cost of rent meant that the NIH did not get the 2022 budget to balance. The allocation for 2023 provides better financial conditions, but it will also be challenging for 2023 to balance the budget.
The government’s national budget for 2023 is tight, which also applies to the entire university and university college sector.