Please note that this press release was corrected 14 June 2019 at 15:00 as dividend payments were underestimated.

In the 1st quarter of 2019, the financial balance of the general government (i.e. the central government, the social security funds and the local governments) amounted to 3.4 billion ISK in deficit or 0.5% of quarterly GDP. This can be compared with a surplus of 25.4 billion ISK in the 1st quarter of 2018. Overall, general government revenues are estimated to have decreased by 2.4% from 1st quarter of 2018. The decline can be partly explained by lower dividend payments by publicly owned financial companies. In the 1st quarter of 2018, dividends amounted to 21.5 billion ISK compared with nearly 5.7 billion ISK in 1st quarter of 2019. Total expenditure has increased by 8.1% from the 1st quarter of 2018. Compensation of employees are the largest part of expenditure, estimated at 34.4% of total general government expenditure.

General government finances in 1st quarter
2018 2019 Change
Figures in billion ISK 1st quarter 1st quarter %
Total revenue 295.1 287.9 -2.4
Total expenditure 269.6 291.4 8.1
Investment 16.5 17.6 6.4
Financial balance 25.4 -3.4 .
Financial balance, % of total revenue 8.6 -1.2 .
Financial balance, % of quarterly GDP 3.9 -0.5 .

public finance 1q 19