The Minister of Finance, Bjarni Benediktsson, unveiled the government budget bill for 2019. The budget includes a significant increase in spending to meet the demands created by growing tourism. The Police will receive a 410 million ISK (3.6 million USD/3.1 million EUR) extra funding to hire more officers to patrol highways. Members of the law enforcement community have on numerous occasions in recent years called for increased funding for the Police to meet the needs created by growing tourism.
Growing tourism requires new spending, investment
The budget will also increase infrastructure spending, raising the spending on roads by 12.3% over the 2018 budget. Most of the money will go to maintenance made necessary by growing traffic in recent years, not least due to tourism.
The budget includes a 8.6% increase in spending on tourism, including infrastructure at popular tourist spots. This includes an increase in funding for the construction of public lavatories along the Ring Road and at various spots frequented by foreign travelers.
Read more: Government unveils steps to combat climate change: Vehicles using fossil fuels banned in 2030
he 2019 budget proposal was unveiled at a press conference earlier today. Yesterday the government unveiled its Climate Change action program which includes significant spending on initiatives to meet the government's goal of making Iceland carbon neutral by 2040.
More spending on culture, the arts
Other noteworthy changes in spending priorities seen between the 2018 and 2019 budgets are a significant increase in spending on culture and the arts. Total spending on cultural institutions like the National Theater and the Symphony Orchestra will be 5.2 billion ISK (46 million USD/40 million EUR), an increase of 4% over 2018. Spending on health care will be increased, both to fund the construction of a new National University Hospital and to expand and improve services.
The budget also envisions significant increase in welfare spending and transfer payments to low- and middle income people, as well as a 25 billion ISK (220 million USD/190 million EUR) to combat the housing shortage and problems created by skyrocketing rents and real estate prices, which have priced many low income people out of the housing market. Taxes, especially on low income people will be lowered.
Despite these spending increases the treasury is projecting a 29 billion ISK (256 million USD/221 million EUR). The government will continue to pay down its debt in the coming year.
Read more: National debt scheduled to drop below 20% of GDP in next few years
The next year is expected to be characterized by a continuation of robust economic growth. Economic growth in Iceland is significantly higher than in most other developed economies.
Read more: Economic growth more robust in 2017 than previous estimated: GDP grew by 4%
The Minister of Finance, Bjarni Benediktsson, unveiled the government budget bill for 2019. The budget includes a significant increase in spending to meet the demands created by growing tourism. The Police will receive a 410 million ISK (3.6 million USD/3.1 million EUR) extra funding to hire more officers to patrol highways. Members of the law enforcement community have on numerous occasions in recent years called for increased funding for the Police to meet the needs created by growing tourism.
Growing tourism requires new spending, investment
The budget will also increase infrastructure spending, raising the spending on roads by 12.3% over the 2018 budget. Most of the money will go to maintenance made necessary by growing traffic in recent years, not least due to tourism.
The budget includes a 8.6% increase in spending on tourism, including infrastructure at popular tourist spots. This includes an increase in funding for the construction of public lavatories along the Ring Road and at various spots frequented by foreign travelers.
Read more: Government unveils steps to combat climate change: Vehicles using fossil fuels banned in 2030
he 2019 budget proposal was unveiled at a press conference earlier today. Yesterday the government unveiled its Climate Change action program which includes significant spending on initiatives to meet the government's goal of making Iceland carbon neutral by 2040.
More spending on culture, the arts
Other noteworthy changes in spending priorities seen between the 2018 and 2019 budgets are a significant increase in spending on culture and the arts. Total spending on cultural institutions like the National Theater and the Symphony Orchestra will be 5.2 billion ISK (46 million USD/40 million EUR), an increase of 4% over 2018. Spending on health care will be increased, both to fund the construction of a new National University Hospital and to expand and improve services.
The budget also envisions significant increase in welfare spending and transfer payments to low- and middle income people, as well as a 25 billion ISK (220 million USD/190 million EUR) to combat the housing shortage and problems created by skyrocketing rents and real estate prices, which have priced many low income people out of the housing market. Taxes, especially on low income people will be lowered.
Despite these spending increases the treasury is projecting a 29 billion ISK (256 million USD/221 million EUR). The government will continue to pay down its debt in the coming year.
Read more: National debt scheduled to drop below 20% of GDP in next few years
The next year is expected to be characterized by a continuation of robust economic growth. Economic growth in Iceland is significantly higher than in most other developed economies.
Read more: Economic growth more robust in 2017 than previous estimated: GDP grew by 4%
