Statistics Iceland releases now a new issue of Statistical Series. This issue presents the General Government Finances in 1998-2006. Last autumn, Statistics Iceland introduced and applied the new IMF Manual on government finance statistics from 2001 and the new version of COFOG classification. Consequently, the financial data for the general government and its subsectors were revised back to 1998. The results of this revision are presented on the website of Statistics Iceland (SI) and in the new issue of Statistical Series, which mainly focus on the general government. Similar information are available on its subsectors on the SI website. 

The general government financial balance was positive by 5.3% of GDP in 2006 which is a similar surplus as in 2005. At the beginning of the discussed period, the financial balance was in a deficit by 0.4% of GDP and in 2003 the deficit amounted to 2.8% of GDP which was its lowest value (see figure 1).

The general government revenue amounted to 46.7% of GDP in 2006 compared with 47.7% in 2005. The revenue of the general government has increased considerably during the period 1998-2006, measured as 41% of GDP in 1998. The general government total expenditure amounted to 41.4% of GDP in 2006 compared with 42.4% in 2005. In the period 1998-2006, the total expenditure had its highest value as percentage of GDP in 2003 reaching 45.7%.

In 2005, the total expenditure on health was 96.3 billion kronur or 9.4% of GDP. Its highest value was in 2003, 10.2% of GDP. Approximately 17½% of the health expenditure is private consumption and the remaining part is public consumption. The total expenditure on education amounted to 85.3 billion kronur in 2005 or 8.35% of GDP. This percentage was 7.06% of GDP in 1998. About 19.6% of expenditure on education is private expenditure. The general government expenditure on social protection was 91 billion kronur in 2005 or 8.9% of GDP which is 21% of the total expenditure of the general government or its largest function. The peak of this expenditure was in 2003 when it amounted to 9.7% of GDP compare with 7.7% in 1998 (see Figure 2).

The total debt of the general government has been decreasing in the recent years. In 2005, the total debt amounted to 540 billion kronur or 53% of GDP compared with 77.5% in 1998. The foreign debt has decreased drastically or from 22% of GDP in 1998 to 10½ of GDP in 2005.

General government finances 1998-2006 - Statistical Series

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