National accounts and public finance

In the 4th quarter of 2009, the financial balance of the general government (i.e. the central government (CG), social security funds (SSF) and local governments (LG)) amounted to 43.5 billion ISK in deficit compared with 14 billion ISK deficit in the 4th quarter of 2008 (excluding the central government debt assumption of 192 billion ISK in 2008). The CG/SSF deficit was 38.9 billion ISK and the LG 4.6 billion ISK. In the same period 2008 the deficits were 11.3 billion ISK and 2.8 billion ISK, respectively. The deterioration between the two quarters is mostly due significant increase in expenditure due to increased indebtedness and unemployment.