Monday - 10 September 2012
Quarterly government accounts, 2nd quarter 2012
Statistics Iceland releases now a new issue of Statistical Series. This issue presents the main indicators on Government Finances in the 2nd quarter of 2012. The financial balance (or net lending/borrowing) of the general government (i.e. the central government, the social security funds and the local governments) was 12.3 billion ISK in deficit in the 2nd quarter of 2012 or 2.9% of quarterly GDP and 6.7% of general government total revenue. This can be compared with 18.6 billion ISK in deficit in the 2nd quarter of 2011 or 4.6% of GDP in that quarter.
The general government total revenue increased by 10% between the 2nd quarters of 2011 and 2012, or from 166.3 billion ISK to 183.4 billion ISK. This is mainly explained by increased revenue from income taxes (8bn ISK) and taxes on goods and services (3bn ISK). The total expenditure increased at the same time by 5.9% or from 184.8 billion ISK in 2011 to 195.7 billion ISK in 2012. The main reasons are a 4.7 billion ISK increase in wages and salaries, more than 3 billion ISK increase in interest expenditure and a 1.4 billion ISK increase in investment.
The central government total liabilities at the end of the 2nd quarter 2012 amounted to 1,938 billion ISK or 111,2% of the GDP. Taking account of its financial assets, the net financial assets, i.e. financial assets less liabilities, was negative by 804 billion ISK or 46,1% of the GDP, compared with a negative net financial asset of 42.2% of the GDP in the same period in 2011 and 35.5% in 2010. Consequently, the central government net financial asset position has deteriorated by 117 billion ISK between the 2nd quarters 2011 and 2012.
Quarterly government accounts, 2nd quarter 2012 - Statistical Series