Statistics Iceland releases now a new issue of Statistical Series. This issue presents the main indicators on Government Finances in the 3rd quarter of 2011. The financial balance of the general government (i.e. the central government, the social security funds and the local governments) amounted to 19 billion ISK in deficit or 4.6% of the GDP in that quarter and 10.6% of general government total revenue. This can be compared with a deficit of 5.2% of GDP in the 3rd quarter of 2010. In the first nine months of 2011, the financial balance of the general government was 56 billion ISK in deficit or 4.7% of GDP, which can be compared with a deficit of 5.9% of GDP for the same period in 2010 (see diagram).

The general government total revenue was 502 billion ISK in the first nine months of 2011 compared with 475 billion ISK in same period in 2010. The increase is 27 billion ISK or 5.7%. The total revenue amounted to 42.2% of the GDP in that period. The increase is mostly in income taxes, which gave 22 billion ISK more revenue than in the first nine months of 2010, and in taxes on goods and services and social contributions, which gave 3.9 and 3.7 billion ISK more revenue, respectively. Other revenue – mostly interest revenue and sale of services – decreased on the other hand by 4 billion ISK in this period in 2011 compared with 2010.

The general government total expenditure amounted to 558 billion ISK in the first nine months of 2011 or to 46.9% of GDP in that period and has increased by 2.8% from same period in 2010. The general government largest expenditure categories are compensation of employees (174 billion ISK), purchase of goods and services (144 billion ISK), social benefits (100 billion ISK) and interest expenditure (61 billion ISK), which decreased by 2.5% in the first 9 months from the same period in 2010. Acquisition of nonfinancial assets was 27 billion ISK and decreased by 20% between 2010 and 2011. Other expenditure categories than interest and investment were unchanged or increased slightly. 
 
The central government total liabilities at the end of the 3rd quarter 2011 amounted to 1,768 billion ISK or 109.2% of the GDP. Taking account of its financial assets, the net financial assets, i.e. financial assets less liabilities, was negative by 723 billion ISK or 44.6% of the GDP, compared with a negative net financial asset of 36.9% of the GDP in the same period in 2010 and 29.5% in 2009. Consequently, the central government net financial asset position has deteriorated by 155 billion ISK between the 3rd quarters 2010 and 2011. 

Quarterly government accounts, 3rd quarter 2011 - Statistical Series