In the 3rd 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 5.5 billion ISK in deficit or 0.7% of quarterly GDP. Overall, general government revenues increased by 3.4% from the 3rd quarter of 2018.
Total general government expenditure increased by 5.9% from the 3rd quarter of 2018. However, for the first nine months of 2019 general government expenditure increased by 7% compared with the same period last year. Compensation of employees is the largest part of expenditure, estimated at 34% of total general government expenditure. Social benefits increased by almost 28% in the 3rd quarter of 2019, compared with the 3rd quarter of 2018. This increase is largely due to an increase in expenditure of the Unemployment Insurance Fund. Public investment, however, decreased by 3.7% for the first nine months of 2019, compared with the same period last year.
| General government finances in 3rd quarter | |||
| 2018 | 2019 | ||
| Billion ISK, current prices | 3rd quart. | 3rd quart. | Change % |
| Total revenue | 297.0 | 307.0 | 3.4 |
| Total expenditure | 294.9 | 312.4 | 5.9 |
| Investment | 32.2 | 26.2 | -18.6 |
| Financial balance | 2.1 | -5.5 | • |
| Financial bal. % of total revenue | 0.7 | -1.8 | • |
| Financial bal. % of quarterly GDP | 0.3 | -0.7 | • |
