Statistics Iceland releases now a new issue of Statistical Series. This issue presents the general government total revenue for the years 1998-2009, and its main focus is on the revenue levels and development in amounts, percentage and real values. It also gives a short overview of the general government revenue and its subsectors back to 1980 and as well a short comparison of the general government total revenue between OECD countries.

The general government total revenue increased from 35.4% of GDP in 1980 to 48.0% in 2006 when it peaked, measured in this way. Following the financial crises it fell down to 40.9% of GDP in 2009, similar to 1998. The central government revenue developed in a similar way, from 28.3% of GDP in 1980 to 35.3% in 2006 and then down to 29.5% in 2009 (see figure 1). The local government revenue has, on the other hand, nearly doubled as a percentage of GDP, from 7.2% in 1980 to 14.2% of GDP in 2007. Since then it has decreased to 12.6% of GDP in 2009. This increase is mainly due to a transfer of functions from the central government to the local government and improved quality increases in local government services. The social security revenue has risen only slightly from 7.2% of GDP in 1980 to 7.6% in 2008, but in 2009 it jumped to 8.9% of GDP because of increasing unemployment and changes in the financing of so-called S-medicine consumed in the two largest hospitals in Iceland. In 2009 prices, the general government revenue amounted to 1,924 thousand ISK per head in 2009 compared with 1,075 thousand ISK in 1980, having increased by 79% in real terms during the period. The revenue measured in this way peaked in 2007 when it was 2,441 thousand ISK per head.

The revenue classification is based on the IMF Government Finance Statistics Manual from 2001 (GFSM 2001), which classifies government revenue into four main categories. The tax revenue is the largest category comprising 73.9% of the total revenue in 2009, having decreased from 78.6% of the total revenue in 2007. The tax revenue peaked in 2006 as percentage of GDP and was 38.1%. In 2009, the tax revenue comprised 30.7% of GDP, a little lower than in 1998. The size of the social contributions in total government revenue has been relatively stable in the last decade at 6-7% or around 3% of GDP. The grants received from international organizations have been of trivial importance or around 0.1% of GDP. Finally, the share of other government revenue is about 19% of the total revenue. The property income has been rising in recent years, but the sale of goods and services has been relatively stable during this period.

General government revenues 1998-2009 - Statistical Series