Kostnadsutviklingen i Forsvaret (1994-2003)
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In real terms, Norwegian defence expenditures have been relatively stable from 1994 to 2003. However, despite significant reductions in military structure and personnel, operating costs have steadily increased during the same period, reducing the portion left for investments from 35% in 1994 to 31% in 2003. This increase in operating costs is due to escalation of both personnel costs and costs related to goods and services. Total personnel costs have increased by 16% during this period and, coupled with a personnel reduction of 18%, this means that the cost of the average employee in Norwegian Defence has increased by more than 40%. Further analysis confirms that wages in Norwegian Defence have increased more than the average for the Norwegian society. Additional compensation in connection with exercises, overtime work etc, partly due to a higher activity level, represents the strongest growth factor for personnel costs. Total costs related to goods and services have had a marginal increase of 4% during the period, but this is high considering the reduction in personnel and defence structure. A “Top 10” list of cost categories prepared in the report represents the bulk of the increase.