National funding for art and culture is primarily allocated via the Ministry’s budget. The majority of the Ministry’s artistic and cultural allocations are made to institutions that receive fixed annual operating grants. These institutions have substantial decision-making autonomy, and are restricted only by their specified objectives and general guidelines laid down by the Storting (the Norwegian parliament) and the government.

As part of the cultural policy decision-making apparatus, a number of schemes have been established that are administered by various peer review-bodies at arm's length, on the basis of artistic and cultural margin of discretion. The largest of these is the Norwegian Cultural Fund, which is managed by Arts Council Norway.