In the 2nd 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 6.1 billion ISK in surplus or 0.8% of quarterly GDP. Overall, general government revenues are estimated to have increased by 7.1% from the 2nd quarter of 2018. However, compared with the first six months of 2019 general government revenues increased by 2.5% compared with the first six months of 2018. The main explanation for increased revenue in the 2nd quarter of 2019 is that dividends from publicly owned financial companies were credited in the 1st quarter of 2018 while almost 70% of the dividends were credited in the 2nd quarter of 2019.
Total general government expenditure has increased by 6.1% from the 2nd quarter of 2018. Compensation of employees is the largest part of expenditure, estimated at 35.3% of total general government expenditure.
| General government finances in 2nd quarter | |||
| 2018 | 2019 | ||
| Billion ISK, current prices | 2nd quart. | 2nd quart. | Change % |
| Total revenue | 288.0 | 308.5 | 7.1 |
| Total expenditure | 284.8 | 302.3 | 6.1 |
| Investment | 23.2 | 28.1 | 21.1 |
| Financial balance | 3.1 | 6.1 | • |
| Financial bal. % of total revenue | 1.1 | 1.9 | • |
| Financial bal. % of quarterly GDP | 0.4 | 0.8 | • |
