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    News | Public Asked to Help Streamline Government Spending
    News

    Public Asked to Help Streamline Government Spending

    Ragnar TómasBy Ragnar TómasJanuary 2, 2025No Comments2 Mins Read
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    Kristrún Frostadóttir, housing crisis Iceland
    Prime Minister of Iceland, Kristrún Frostadóttir. Photo: Golli. Iceland Review.
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    Iceland’s government is seeking public input on improving state operations through a consultation portal, which will remain open until January 23. Submissions will inform a long-term reform plan to enhance efficiency and reduce waste.

    An invitation to the public

    In her New Year’s address, Prime Minister Kristrún Frostadóttir announced that on the first working day of the new year, she would initiate a consultation with the public on ways to streamline state operations.

    In keeping with this promise, Iceland’s newly formed government is now inviting the public to submit proposals for streamlining operations, simplifying administration, and merging institutions through its consultation portal. This was announced in a statement on the government’s website.

    “The public, businesses, and stakeholders can submit proposals, ideas, and perspectives on how to improve the efficiency of state operations. Additionally, specific requests for information and suggestions will be made to state institutions,” the statement reads.

    As noted by RÚV, a deficit of approximately ISK 60 billion [$428 million / €417 million] is projected for the operation of the state in 2025.

    Working group to review proposals

    Participants are encouraged to submit clear and concise proposals through the portal, which is open until January 23. A working group under the Prime Minister’s Office will review all submissions, and the findings will be used to develop a long-term plan for reforms in state operations.

    The initiative is titled Let’s Be Efficient in State Operations (Verum hagsýn í rekstri ríkisins).

    • Where and how can state operations be optimised?
    • Would we allocate public funds to the same projects and in the same way if we were starting from scratch?
    • Where could priorities be reshuffled or changed?
    • Are there examples of waste in public administration that could be easily addressed?

    A statement on the aforementioned consultation portal notes that the expenditures of the Icelandic government are projected to be approximately ISK 1,550 billion [$11.2 billion / €10.8 billion] in 2025.

    “… or about ISK 16 million [$115,699 / €111,186] per four-person household, broadly divided into wages and operating costs, investments, transfers, and benefits. Therefore, there is much at stake. By ensuring efficiency in state operations, we can manage funds more effectively and create opportunities to strengthen public services and other aspects of society across the country.”

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    consultation portal government spending Kristrún Frostadóttir
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    Ragnar Tómas

    Ragnar Tómas is a former contributor to Iceland Review.

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