Statistics Iceland releases now an aggregated overview of quarterly central and local government non-financial accounts for the 2nd quarter of 2005. The figures are on accruals basis. These quarterly overviews are published 90 days after the end of the respective quarter and they are now available back to 2004, 1st quarter.

The accounts for the central government are based on information from the Government Financial Management Authority but the data for local governments are based on a sample of accounts from 8 municipalities with 56.8% of the population in Iceland. These have been grossed up by Statistics Iceland. So far the breakdown of the data is rather limited but there are plans for providing more detailed data in the future. Here, two concepts are used to measure the financial result of the government. The first one is the concept called financial balance, which more or less corresponds to the national accounts concept, net lending/net borrowing, where gross fixed capital formation has been expensed but depreciation is not. The other concept is the operating balance where depreciation is expensed but gross fixed capital formation is not. Only the first  concept is available for the central government and therefore the result for the general government is also restricted to that concept.

According to these preliminary figures, the central government revenue for the 2nd  quarter of 2005 amounted to 87.3 billion ISK and the financial balance was positive by 4.4 billion ISK, a substantial improvement from previous year. 

The revenue of the local government in the 2nd quarter 2005 is estimated to have amounted to 25.4 billion ISK, current expenditure to 24.4 billion rendering  the operating balance  positive by 1.0 billion ISK. However, the financial balance is estimated to have been negative by 1.9 billion ISK owing to higher investments than depreciation. Both these indicators showed a deterioration in local government finances from the same quarter in previous year.

The total revenue of the general government, i.e. central and local government together, is estimated 112.7 billion ISK in the 2nd quarter of 2005 and increased by 27.4% from the same quarter year before. At the same time the current expenditure including investments but excluding depreciation increased substantially less or by 17.5% which resulted in an improvement of the overall financial balances of general government. Now it is estimated as 2.2% of total revenue compared with -6.0% in the 1st quarter of 2004.

Accumulated figures for the general government for the 1st and 2nd quarter 2005 show an increase in total revenue of 23.3% from previous period and a considerable increase in financial balance, mainly originating in central government finances.

 
In the figures presented here, both revenue and expenditure figures are recorded on  accruals basis whereas the monthly figures published by the Government Financial Authority are on cash basis. Accruals basis means that flows are recorded when they are established regardless of when the actual payment is made. The data presented here, both for central and local government, are preliminary. In particular, the information on investment of the local government is sketchy. In some cases these figures are recorded on a net basis in local government accounts. Here an attempt is made to record these items gross. 
    
Statistics (See: "General government quarterly non-financial accounts 2004-2005")