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Quarterly government accounts, 1st quarter 2012

Statistics Iceland releases now a new issue of Statistical Series. This issue presents the main indicators on Government Finances in the 1st quarter of 2012. The financial balance of the general government (i.e. the central government, the social security funds and the local governments) amounted to 8.1 billion ISK in deficit or 1.9% of quarterly GDP and 4.6% of general government total revenue. This can be compared with 11.8 billion ISK in deficit in the 1st quarter of 2011 or 3.1% of GDP in that quarter. The deficit has not been less since the second quarter of 2008. 

The general government total revenue has increased by 11.1% between the 1st quarters of 2011 and 2012, or from 160.8 billion ISK to 178.8 billion ISK. This increase can mainly be explained by increased revenue from income taxes (8bn ISK increase), taxes on goods and services (4bn ISK increase) and other revenue (2bn ISK increase). The total expenditure increased at the same time by nearly 8.2%, or from 172.6 billion ISK in 2011 to 186.7 billion ISK in 2012. The main reasons are a 5 billion ISK increase in wages and salaries, a 3.3 billion ISK increase in use of goods and services, a 3 billion ISK increase in interest cost and a 2.2 billion ISK increase in social benefits.

The central government total liabilities at the end of the 1st quarter 2012 amounted to 1,897 billion ISK or 105.4% of the GDP. Taking account of its financial assets, the net financial assets, i.e. the financial assets less liabilities, was negative by 750 billion ISK or 41,7% of the GDP, compared with a negative net financial asset of 39.6% of the GDP in the same period in 2011 and 33.6% in 2010. Consequently, the central government net financial asset position has deteriorated by 104 billion ISK between the 1st quarters 2011 and 2012.

Quarterly government accounts, 1st quarter 2012 - Statistical Series