Norway's outgoing government proposes wealth fund spending cut

FILE PHOTO: Prime Minister of Norway Erna Solberg speaks at the SDG Moment event as part of the UN General Assembly 76th session General Debate in UN General Assembly Hall, New York City, U.S., September 20, 2021. John Angelillo/Pool via REUTERS

OSLO (Reuters) - Norway should sharply cut spending from its $1.3 trillion sovereign wealth fund in 2022 as the economy rebounds from the pandemic, the outgoing centre-right minority government told parliament on Tuesday.

In one of its last official acts before stepping down later this week, the government proposed withdrawing 322.4 billion Norwegian crowns ($37.6 billion) from the wealth fund next year, down from 406.8 billion crowns in 2021.