In the second quarter of 2023, the financial balance of the general government (i.e. the central government, the social security funds and the local governments) is estimated at 15.5 billion ISK in deficit or amounting to 1.5% of quarterly GDP. In comparison, the deficit amounted to 4% of the quarterly GDP in the first quarter of 2022.

General government revenues are estimated to have increased by 10.2% compared with last year’s corresponding quarter, mainly driven by 10.4% increase in revenues from taxes and social security contribution.

Total expenditure is estimated to have increased by 4.4% from last year’s corresponding quarter. It is estimated that compensation of employees increased by 8.2%, use of goods and services by 9.6% and public investment by 1%.