State Treasury Operated with ISK 60 Billion Deficit? Skip to content

State Treasury Operated with ISK 60 Billion Deficit?

The government’s new budget bill, presented today, is expected to report on a deficit of almost ISK 60 billion (USD 565 million, EUR 400 million). Earlier forecasts had predicted a deficit of ISK 20 billion (USD 188 million, EUR 133 million) for 2009, but estimates have changed in the last few weeks.

If these estimates prove right, it will be the first time since 2001 that the state treasury is operated with a deficit. For the past three years the state treasury has delivered profits of ISK 283 billion (USD 2.67 billion, EUR 1.89 billion), 24 Stundir reports.

The budget bill was completed before last weekend and shipped in for printing and therefore the most recent events in the Icelandic economy—the nationalization of Glitnir Bank—will not have direct influence on the bill.

However, according to 24 Stundir’s sources, the changed economic situation will probably be considered in the parliament’s handling of the bill.

The budget will be presented in Hafnarborg – the Hafnarfjördur Institute of Culture and Fine Art today and discussed for the first time in the Althingi parliament on Friday.

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