Statistics Iceland releases now a new issue of Statistical Series. This issue presents the general government finances in 2007 and its main focus is on the general government. Similar information is available on its subsectors on the SI website.
The general government net financial asset, i.e. the financial assets less liabilities, was negative by 301 billion ISK in 2008 or 20.5% of GDP. The deterioration from 2007 is 312 billion ISK or 21.4% of GDP. The general government total financial asset amounted to 1.065 billion ISK in the end of 2008 and the total liabilities 1.366 billion ISK.
In 2008, the total expenditure on health was 9.4% of GDP, of which 82.9% was financed by the general government and the rest by households. The total expenditure on education was 119.6 billion ISK or 8.2% of GDP, of which 89.6% was financed by the general government, and the total general government expenditure on social protection in 2008 was 136 billion ISK or 9.3% of GDP. About 18.7% of general government expenditure goes to health affairs, 18.0% to education and 20,8% to social protection. In total, the general government spends 359 billion ISK on these three functions of government or 24.5% of GDP and 58.9% of its total net expenditure.
In 2008, the financial balance of the general government was 17.2 billion ISK in deficit or 1.2% of GDP, which can be compared with a surplus of 5.4% of GDP for 2007 and 6.3% for 2006 (see figure 2). The total revenue increased by 2,1% from 2007 and the total tax revenue decreased slightly at the same time as the total expenditure increased by 18,2%. By including the central government debt assumption of 192.2 billion ISK in 2008, the financial balance deficit increases to 209.3 billion ISK or 14.3% of GDP.
The general government total revenue amounted to 43.5% of GDP in 2008, compared with 47.9% in 2007 and 48.0% in 2006. The revenue had increased considerably since 2002, when it was measured as 41.7% of GDP. The general government total expenditure amounted to 44.6% of GDP in 2008 compared with 42.5% in 2007 and 41.7% in 2006. The total expenditure had its highest value as percentage of GDP in 2003 reaching 45.6%.
General government finances 2008, preliminary accounts - Statistical Series