In the 2023 version of the reference budget, the basis for the consumption area “household goods” has been completely revised, while the basis for the consumption area “other everyday household items” has been partially revised, and new prices have been collected. It is a goal for the work with the reference budget that the basis for the cost calculations within all consumption areas is to be revised and updated approx. Some consumption areas are updated with new prices annually, while the prices for other consumption areas are adjusted based on changes in the consumer price index. The reference budget is updated annually, but the way in which the various consumption areas are updated varies. However, the consumption area “Food and beverages” differs in being more sensitive to the household composition than the other individual-specific consumption areas, and economies of scale of 12 per cent are therefore calculated for this consumption area for couples with more than two children. With regard to individual-specific expenses, these are primarily costs related to goods and services meant to cover individual needs. that several individuals make use of the same item, are naturally integrated into the household-specific expenses. The point of departure for the calculations in the budget is that the total amounts presented for the various family constellations are sufficient to meet the needs of individuals and families. This is how the economies of scale are calculated When the refrigerator, cooker or washing machine breaks down, money should be available to repair it or to buy a new one without affecting the consumption pattern. It is referred to as a long-term budget because it assumes that money is set aside monthly for more infrequent purchases of expensive and durable consumer goods. The reference budget is a supplementary budget for households that already have an acceptable standard of living. Furthermore, it is worth noting that the budget does not cover all expenses a person or a family might have, such as housing, holiday travel, gifts and health services other than an annual visit to the general practitioner and the dentist. If relevant, safety aspects have also been taken into account. The goods that form the basis for the calculations are of normal, sound quality, with the emphasis on durability, accessible design and functionality. This means that the budget does not reflect a statistical average. It exemplifies what researchers within the various consumption areas consider to be a reasonable level of consumption. The reference budget is based on a detailed list of goods and services and their costs. The consumption level allows for fulfilment of the public health and nutritional requirements and for satisfactory participation in the most common leisure activities. It should neither reflect a luxury level nor be restricted to only cover basic needs. The level is intended to reflect the population’s perception of what a typical person or family should be able to consume if all adult household members participate in the workforce. A reasonable, or acceptable, standard of living assumes a consumption level that is generally accepted in Norwegian society. The reference budget presents the costs of maintaining a reasonable standard of living for the household of interest. and expenses related to less frequent purchases, such as furniture and electrical appliances A reasonable standard of living It covers both current expenses such as food, clothing, toiletries etc. The budget can be adapted to households of different sizes as well as to different age and gender compositions. Based on baskets of goods and services that are considered necessary for an acceptable standard of living, the reference budget presents ordinary consumer expenditure for different types of households.
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