Statistics Iceland releases now a new issue of Statistical Series. This issue presents the main indicators on Government Finances in the 1st quarter of 2008. In that quarter, the financial balance of general government (i.e. the central government, the social security funds and the local governments) showed a deficit of 1.9 billion ISK or 0.1% of GDP and 1.2% of general government total revenue. This can be compared with a surplus of 0.9% of GDP and 7.6% of general government total revenue in the 2nd quarter of 2007. The general government financial balance has not been in deficit since the third quarter of 2004. This unfavorable development is due to financial balance deficit of both the central and the local governments, but the social security funds are run by a surplus in the 2nd quarter of 2008.

The central government total revenue in 2nd quarter 2008 increased by 1.3% from the same quarter 2007, but decreased by 4.6% from the 1st quarter of 2008 or by 5.4 billion ISK, mostly due to less revenue from taxes on goods and services. At the same time, its expenditure increased by 13.8% between the 2nd quarters 2007 and 2008 and by 10.4% between the 1st and the 2nd quarters 2008, mostly due to increased investment and grants to social security funds.

Quarterly government accounts, 2nd quarter 2008 - Statistical Series