The state of public finances in Iceland is strong, figures on public spending and debt published by Statistics Iceland reveal. The combined financial balance of the national and local governments and the social security funds was positive to the tune of 9.6 billion ISK (88 million USD/76 million EUR). This equals 1.5% of the quarterly GDP and 3.5% of general government total revenue.
Government revenue grew more rapidly than spending in the past 12 months. Revenue increased by 5.3% from 1st quarter 2017 to 2018, primarily due to rising wages. Compensation to government employees increased by 7.9%. Public consumption increased by 2.9%, while the cost of servicing public debt decreased by 14.9%. At the end of the first quarter of 2018 the government debt of Iceland equaled 58.9% of GDP.
The state of public finances in Iceland is strong, figures on public spending and debt published by Statistics Iceland reveal. The combined financial balance of the national and local governments and the social security funds was positive to the tune of 9.6 billion ISK (88 million USD/76 million EUR). This equals 1.5% of the quarterly GDP and 3.5% of general government total revenue.
Government revenue grew more rapidly than spending in the past 12 months. Revenue increased by 5.3% from 1st quarter 2017 to 2018, primarily due to rising wages. Compensation to government employees increased by 7.9%. Public consumption increased by 2.9%, while the cost of servicing public debt decreased by 14.9%. At the end of the first quarter of 2018 the government debt of Iceland equaled 58.9% of GDP.
