Landshagir - 01.11.2013, Page 283

Public finance
LANDSHAGIR 2013 STATISTICAL YEARBOOK OF ICELAND 2013
15
281
Statistics Iceland compiles the annual
general government, central government,
and local government statistics, on an
accrual basis, in the context of the national
accounts based on the 1995 ESA and the
ESA95 Manual on Government Deficit and
Debt. The government sector comprises
those activities in the economy that are
mainly financed by tax revenue.
One of the main purposes of keeping
accounts of the general government is to
give an overview of its revenue, expendi-
ture, assets and liabilities and of its main
balances, i.e. the operating balance and net
lending/borrowing balance. The accounts
are produced in line with the IMF’s GFSM
2001 standard on the government finances
(The Government Finance Statistics
Manual, 2001), the European System of
Accounts from 1995 (ESA95) and the Clas-
sification of the Functions of Government
(COFOG) issued by the United Nations.
The accounts are produced for the general
government as well as for its subsectors,
i.e. budgetary central government, social
security funds and local governments.
The financial balance of the general
government was 88.5 billion ISK in deficit
In 2012, the financial balance of the general
government was 65.3 billion ISK in deficit
or 3.8% of GDP, which can be compared
with a deficit of 5.6% of GDP for 2011. The
reduced deficit in 2012 can be explained by
8.7% increase in revenue and 4.4% increase
in expenditure. The general government
total revenue amounted to 43.6% of GDP
in 2012, compared with 41.8% in 2011 and
41.5% in 2010. The general government
total expenditure amounted to 47.4% of
GDP in 2012 which is equal share as in 2011
to compare with 51.6% in 2010.
The total expenditure on health was
9.1% of GDP
In 2012, the total expenditure on health
was 9.1% of GDP, of which 80.6% was
financed by the general government and
the rest by households. The health expend-
iture per capita was 387 thousand ISK in
2012 and has decreased by 52 thousand
ISK (2012 prices) since 2008 or by 12%. The
total expenditure on education was 136
billion ISK in 2012 or 8% of GDP, of which
90.3% was financed by the general govern-
ment. The expenditure per capita was 382
thousand ISK in 2012 and has decreased by
58 thousand ISK from 2008 in 2012 prices
or by 13.1%.
The general government net financial assets
were negative by 947 billion ISK in 2012
The general government net financial
assets, i.e. financial assets less liabilities,
were negative by 947 billion ISK in 2012
or 55.8% of GDP. The deterioration from
2011 is 74.4 billion ISK or 4.4% of GDP. The
general government total financial assets
amounted to 1,254 billion ISK at the end of
2012 and the total liabilities, 2,201 billion
ISK.