The deficit of the general government (i.e. central government, social security funds and local governments) is estimated at 37.0 billion ISK in the third quarter of 2024, which amounts to 3.1% of quarterly gross domestic product (GDP). In comparison, the deficit in the third quarter of 2023 was 0.5% of the quarterly GDP.
General government revenues are estimated to have increased by 5.2% compared with the third quarter of 2023. Revenues from taxes and social security contributions increased by 7.4%, while other revenues are estimated to have decreased by 7.0%.
General government expenditure is estimated to have increased by 11.8% in the third quarter of 2024 compared with the same period last year. This rise in expenditure is largely driven by a 17.8% increase in expenditure due to social benefits. Additionally, the cost associated with government measures in response to earthquakes and volcanic activity near Grindavík have significantly impacted the government finances.
The scope of the general government sector, as according to European System of Accounts (ESA2010), includes housing and student loan funds owned by the central government. These funds have a substantial impact on interest income and interest expenditure of the general government. In an explanatory report published on 30 November 2020, and available on Statistics Iceland’s website, the methodological basis for the sector classification is explained.
The government finance figures are estimated based on preliminary figures. The results will change when the final accounts are available.