Lánamál ríkisins - Company Announcement

GOVERNMENT ACCOUNTS 2015

The results of Government Accounts for 2015 have now been published and the
accounts forwarded to the Icelandic parliament Althingi. The current balance
for the year was positive by ISK 20.0 billion, which accords with budget
forecasts. By comparison, in 2014 the current balance was positive by ISK 46.4
billion. 

Revenues in 2015 somewhat exceeded budget estimates. This is due to dividends
paid by financial undertakings and higher tax bases resulting from increased
economic activity, which were taken into consideration in the supplementary
budget. Expenditures exceeded budget allocations somewhat, as increased
allocations were approved with the year's supplementary budget to meet, among
other things, higher wage expenditures following bargaining agreements with
public employees and wage arbitration decisions, the Treasury's taxes on
financial income and other aspects. 

The primary balance for the year was positive by the equivalent of 3.8% of GDP,
compared to a positive primary balance of 5.3% in 2014. 

In 2015 the Treasury had a net funding surplus equivalent to 1.9% of GDP,
compared to a surplus of 3.9% the previous year, much in line with the expected
result. The budget estimated a net funding surplus of around 1.1% of GDP, and
the Supplementary Budget a funding surplus of around 1.9%. Strong growth has
supported an increase in purchasing power 

“Stability in the economic environment, strong GDP growth and actions taken by
the government in recent quarters have given strong support for increasing
purchasing power among the general public and improved the Treasury's
performance. Following the policy of fiscal responsibility, the objective was a
positive overall Treasury balance in 2015, and this policy is reflected in the
balance which has been achieved through effective actions,” says Minister of
Finance and Economic Affairs Bjarni Benediktsson regarding the outcome of
government accounts. The ongoing Treasury debt build-up was brought to an end
in 2014, with the first budget bill since 2007 not anticipating a deficit
outcome. 

The Minister emphasised the importance of continuing to pay down debt, reducing
the Treasury's debt service burden and creating scope to get to work on various
urgent projects and obligations. “This will deliver major benefits for
Icelandic society as time progresses. The task we face now is to insure
continuing improvement in fiscal matters,” the Minister added. The five-year
Statement of Fiscal Policy and Fiscal Strategy Plan for the public sector,
presented to the Althingi this spring, is intended to reinforce economic
equilibrium and stability for corporates and households, as well as the public
sector. “In so doing we open up possibilities for improvements and better
services for the general public, while at the same time providing stronger
support for the economic upswing and improving standards of living for
Icelanders.” 



Electronically endorsed accounts

For the third year in a row, the Minister of Finance and Economic Affairs, the
Director General of the Financial Management Authority and the Auditor General
all endorsed the Government Accounts with electronic signatures, using digital
certificates. Iceland is among the first countries to endorse its Government
Accounts in this manner. 

Government Accounts in their entirety, with the accompanying breakdown and
notes, are accessible on the website of the Financial Management Agency fjs.is.

Attachments:

Rikisreikningur- Gov Accounts 2015.pdf

Rikisreikningur 2015 Arsreikningar rikisaila.pdf

Rikisreikningur 2015 Heildaryfirlit.pdf