Icelandic State’s 2012 Budget Bill Passed Skip to content

Icelandic State’s 2012 Budget Bill Passed

The government’s budget bill for 2012 was passed at Alþingi*, the Icelandic parliament, yesterday evening with 31 votes against three and 23 abstentions after almost three hours of voting. Six MPs were absent. All of the opposition’s proposals on amendments were rejected.


Inside Alþingi. Archive photo by Páll Kjartansson.

Minister of Finance Steingrímur J. Sigfússon declared that the bill demonstrates one of the most significant economic recoveries among western nations, reports.

While Steingrímur predicted brighter times lie ahead for Iceland, the opposition disagreed. “Increased taxation and cutbacks are coming instead of maintenance and development,” commented Independence Party MP Kristján Þór Júlíusson.

Steingrímur stated it is clear that all doomsday predictions have been proven wrong, reasoning that an ISK 20.7 billion (USD 174 million, EUR 130 million) deficit confirms the government’s success in regaining control of state finances.

“The conclusion is acceptable. It is a minor divergence from the original bill,” the minister added. When the budget bill was submitted in early October, an ISK 17.7 billion deficit was assumed.

The state’s income will be ISK 522.9 billion (USD 4.4 billion, EUR 3.3 billion) next year and the overall expenses amount to ISK 543.7 billion if the budget’s plan works out, reports.

There would be a surplus of the state’s regular operations next year, Steingrímur claimed, according to, “We will be among the very few OECD states that can demonstrate such numbers in the current budget term.”


* The Icelandic letter þ is pronounced like th in thunder.

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