In the 1st quarter of 2017, the financial balance of the general government (i.e. the central government, the social security funds and the local governments) amounted to a surplus of 17.6 billion ISK or 3.1% of quarterly GDP and 6.7% of general government total revenue. This can be compared to a 370.7 billion ISK surplus in the 1st quarter of 2016. Revenue due to ‘stability contribution’, 384.3 billion ISK, is included in 1st quarter 2016. Without the stability contribution the financial balance would have amounted to a deficit of 13.6 billion ISK on 1st quarter of 2016 or 2.5% of quarterly GDP.
Due to changes in source data that have taken place in connection with the implementation of the Act on Public Finance, uncertainty in public sector accounts is greater now than under normal circumstances. The results of public finances in Q1 are therefore presented subject to changes that may be due to more information.
Due to availability of new information on the Treasury's contribution to the Government Employees Pension Fund, figures for 2016 have been revised from the preliminary publication in March 2017. In the preliminary publication, a contribution of ISK 117.2 billion was reported on the balance sheet, while the revised financial statements accounted for ISK 105.1 billion for capital transfers in the 4th quarter 2016. This revision has led to a decline in public finances in 2016. According to the preliminary publication, the general government revenue was 17.2% of GDP in 2016, but is now estimated at 12.9% of GDP following this change. The overall revision of public sector finances in 2016 will be published in accordance with the advance release calendar on 14th September.
Quarterly government accounts, 1st quarter 2017 - Statistical Series