In the second quarter of 2022, the financial balance of the general government (i.e. the central government, the social security funds and the local governments) is estimated at 97.7 billion ISK in deficit or amounting to 10.7% of quarterly GDP. In the first 6 months of 2022, it is estimated that the revenue balance of the general government is in deficit of 6.3% of the period's GDP. This is a somewhat smaller deficit from the first 6 months of 2021 when it accounted for 9% of the period's GDP.
Overall, general government revenues are estimated to have increased by 16.4% compared with last year’s corresponding quarter, of which the increase in tax revenue was 11.1%. It is estimated that social security contributions have increased by 16% from the same period last year and taxes on goods and services by 9.8%.
Total expenditure is estimated to have increased by 17.5% from last year’s corresponding quarter. It is estimated that interest expenditures have increased by over 60 billion ISK from the second quarter of 2021, compensation of employees by 8.5% and use of goods and services by 8.9%. On the other hand, transfer expenditures are estimated to have decreased by 17.5% and social transfers to households by 8.6% from the first quarter of 2021. The main explanation is that unemployment has decreased considerably and expenditures on unemployment insurance have decreased by 58.6% in the period.