Landshagir - 01.11.2014, Page 299

Public finance
LANDSHAGIR 2018 STATISTICAL YEARBOOK OF ICELAND 2018
14
299
Statistics Iceland compiles the annual
general government, central govern-
ment, and local government statistics,
on an accrual basis, in the context of the
national accounts based on the ESA2010
and the ESA2010 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 (ESA2010) and the Classification
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.
Financial balance of the general government
32 billion ISK in 2013
In 2013, the financial balance of the general
government was 32 billion ISK in deficit or
1.7% of GDP, which can be compared with a
deficit of 3.7% of GDP for 2012. The reduced
deficit in 2013 can be explained by 7.4%
increase in revenue and 2.7% increase in
expenditure. The general government total
revenue amounted to 42.5% of GDP in 2013
while its total expenditure amounted to
44.2% of GDP.
Total expenditure on health 8.8%
of GDP in 2013
In 2013, the total expenditure on health
was 8.8% of GDP, of which 80.8% was
financed by the general government and
the rest by households. The health expen-
diture per capita was 412 thousand ISK
in 2013 and has decreased by 10% in real
terms since 2008.
The total expenditure on education was 146
billion ISK in 2013 or 7.8% of GDP, of which
90.3% was financed by the general govern-
ment. The expenditure per capita was 406
thousand ISK in 2013 and has decreased by
13% from 2008 in 2013 prices.
The general government net financial assets
negative by 971 billion ISK in 2013
The general government net financial
assets, i.e. financial assets less liabilities,
were negative by 971 billion ISK in 2013 or
51.8% of GDP. The deterioration from 2012
is 20 billion ISK. The general government
total financial assets amounted to 1,199
billion ISK at the end of 2013 and the total
liabilities to 2,169 billion ISK.