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Statistics Iceland releases now a new issue of Statistical Series. This issue presents the main indicators on Government Finances in the 4th quarter of 2010. The financial balance of the general government (i.e. the central government, the social security funds and the local governments) amounted to 31 billion ISK in deficit or 8% of the GDP in that quarter and 19% of general government total revenue. This can be compared with 43 billion ISK in deficit in the 4th quarter of 2009 or 11.2% of GDP of that quarter. In 2010, the financial balance of the general government was 97 billion ISK in deficit or 6.3% of GDP, which can be compared with a deficit of 10% of GDP for the same period in 2009. 

The general government total revenue was 651 billion ISK in 2010 compared with 614 billion ISK in 2009. The increase is 36 billion ISK or 5.9%. The total revenue amounted to 42.3% of the GDP in that period. The increase was mostly in social contributions (19 billion ISK) and taxes on goods and services (17 billion ISK), or 36 billion ISK higher revenue than in 2009. The increase in taxes on income was 12 billion ISK, but other revenue — mostly interest revenue and sale of services — decreased on the other hand by 13 billion ISK in 2010 compared with 2009.

The general government total expenditure amounted to 748 billion ISK in 2010 or to 48.6% of GDP, resulting in a decrease of 2% from 2009. The general government largest expenditure categories are compensation of employees (225 billion ISK), purchase of goods and services (189 billion ISK), social benefits (120.5 billion ISK) and interest expenditure (93 billion ISK), which decreased by 5.6% from 2009. Acquisition of nonfinancial assets was 40 billion ISK and decreased by 31% between 2009 and 2010. Other expenditure categories than these were unchanged or increased slightly.

Net financial assets, i.e. the difference between financial assets and liabilities, of the central government was negative by 585 billion ISK in the 4th quarter of 2010 compared with negative 511 billion ISK in the same quarter of 2009. Total liabilities of central government amounted to 1,629 billion ISK at the end of the 4th quarter of 2010, comprising 105.8% of GDP, compared with 1,566 billion ISK, or 104.8% of GDP, during the same period in the previous year.  

Quarterly government accounts, 4th quarter 2010 - Statistical Series