Norway Plans To Tap $63.7 Billion From Oil Fund In 2027

The Norwegian government has unveiled its budget bill for 2027, featuring a proposal to withdraw and spend 608.4 billion Norwegian crowns, which equals $63.7 billion, from Government Pension Fund Global for public expenses. According to the government, spending from the world's largest sovereign wealth fund will increase by 4.9 billion crowns, or $513 million, compared to 2026 when measured in fixed 2027 prices.

The planned spending for 2027 accounts for 2.7% of the total value of the fund, matching the percentage allocated in 2026. Alongside the budget bill, key economic assumptions for the upcoming year include projected Gross Domestic Product growth of 1.7%, representing an increase from 1.1% in 2026 and a return to 2025 levels.

Fund Structure and Portfolio Performance

Commonly referred to as Norway's oil fund due to its origins from oil and gas revenues, Government Pension Fund Global holds an average of 1.5% of all listed companies globally. More than half of its equity investments are concentrated in the United States market, with major holdings including technology giants such as Nvidia, Apple, and Microsoft.

At the end of the first half of 2026, equity investments accounted for 72.1% of the fund's total value, while fixed-income investments represented 25.8%. During that same period, the fund manager, Norges Bank Investment Management, reported a record-high profit of 1.753 billion Norwegian crowns, or $185 billion, before foreign exchange adjustments, driven largely by a rally in Asian technology stocks.

Key facts

• The government proposes withdrawing 608.4 billion Norwegian crowns ($63.7 billion) from the sovereign wealth fund in 2027.
• Planned spending increases by 4.9 billion crowns ($513 million) compared to 2026 in fixed 2027 prices.
• The withdrawal accounts for 2.7% of the fund's value, matching the 2026 ratio.
• Projected GDP growth for 2027 is estimated at 1.7%, up from 1.1% in 2026.
• Equity investments made up 72.1% of the fund's value at the end of the first half of 2026.