Reykjavík City Deficit Amounts to ISK 4.7 Billion Skip to content

Reykjavík City Deficit Amounts to ISK 4.7 Billion

By Iceland Review

The City of Reykjavík was operated with a deficit of almost ISK 4.7 billion (USD 37 million, EUR 28 million) in 2011 according to the annual account presented by city authorities on Monday. Budget plans had assumed ISK 3.4 billion in surplus.


Reykjavík City Hall. Photo by Páll Kjartansson.

The Reykjavík Municipal Treasury was operated with a deficit of more than ISK 2.8 billion (USD 22 million, EUR 17 million), while budget plans had assumed that operations would be balanced, reports.

The mayor’s substitute Dagur B. Eggertsson reasoned that the explanation for the deficit primarily lies in the debit entry of pensions obligations worth ISK 4 billion following new wage contracts.

However, the opposition’s Independence Party harshly criticized the outcome, pointing out that operational costs and debts have increased significantly.


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