The general government (central government, local government and social security funds combined) had a positive balance in 2016 of 416.8 billion ISK (3.85 billion USD/3.58 billion EUR), which amounts to 17.2% of GDP. This is a significant improvement compared to 2015 when the government had a deficit of 18.5 billion ISK, or 0.8% of GDP.
The surplus in the fourth quarter was 4.3% of the quarterly GDP, and 9.4% of total revenue of the general government.
Large stabilization payments from estates of fallen banks
Most of the surplus is due to extraordinary one-time revenue from the exit tax imposed on the estates on the fallen banks. However, even in the absence of the exit tax the general government would have had a surplus of 32.5 billion ISK (300 million USD/280 million EUR), or 1.3% of GDP.
The general government had a deficit from 2008-2015. In 2008 the deficit was in excess of 13% of GDP.
Government debt continues to shrink
The total liabilities of the general government amounted to 87.8% of GDP at the end of 2016, having dropped from 126.7% of GDP in 2011.
According to the preliminary figures on the general government finances 2016, published by Statistics Iceland, government expenditures in 2016 amounted to 41.2% of GDP, compared to 42.9% of GDP in 2015. Government revenue amounted to 58.4% of GDP in 2016, primarily due to the stability payments of the estates of the fallen banks. In 2015 government revenue was 42% of GDP.
The general government (central government, local government and social security funds combined) had a positive balance in 2016 of 416.8 billion ISK (3.85 billion USD/3.58 billion EUR), which amounts to 17.2% of GDP. This is a significant improvement compared to 2015 when the government had a deficit of 18.5 billion ISK, or 0.8% of GDP.
The surplus in the fourth quarter was 4.3% of the quarterly GDP, and 9.4% of total revenue of the general government.
Large stabilization payments from estates of fallen banks
Most of the surplus is due to extraordinary one-time revenue from the exit tax imposed on the estates on the fallen banks. However, even in the absence of the exit tax the general government would have had a surplus of 32.5 billion ISK (300 million USD/280 million EUR), or 1.3% of GDP.
The general government had a deficit from 2008-2015. In 2008 the deficit was in excess of 13% of GDP.
Government debt continues to shrink
The total liabilities of the general government amounted to 87.8% of GDP at the end of 2016, having dropped from 126.7% of GDP in 2011.
According to the preliminary figures on the general government finances 2016, published by Statistics Iceland, government expenditures in 2016 amounted to 41.2% of GDP, compared to 42.9% of GDP in 2015. Government revenue amounted to 58.4% of GDP in 2016, primarily due to the stability payments of the estates of the fallen banks. In 2015 government revenue was 42% of GDP.
