The deficit of the general government is estimated at 48.3 billion ISK in the second quarter of 2026, which amounts to 3.8% of quarterly gross domestic product (GDP). In comparison, the deficit in the second quarter of 2025 was 3.0% of the quarterly GDP.
The government finance figures are estimated based on preliminary figures. The results will be revised when the final accounts are available.
General government revenues are estimated to have increased by 4.3% year-on-year in the second quarter of 2026. Revenues from tax revenues on income and profits increased by 6.2%, and revenues from taxes on goods and services increased by 5.3%.
It is estimated that total expenditure of the general government increased by 6.1% in the second quarter of 2026 compared with the same period last year. Government final consumption expenditure continues to rise, with compensation of employees estimated to have increased by 7.2% at current prices and expenditure on intermediate consumption by 8.5%. Social transfers to households show a notable increase, with preliminary data indicating a rise of 22.9%.
The scope of the general government sector, as according to European System of Accounts (ESA2010), includes housing and student loan funds owned by the central government. These funds have a substantial impact on interest income and interest expenditure of the general government. In an explanatory report published on the 30 November 2020, and available on Statistics Iceland’s website, the methodological basis for the sector classification is explained.