Treasury

Treasury finances January - April 2002. Report date: May 23, 2002.

5/23/2002

Treasury finances in April, May 23, 2002 (PDF 16K).

Figures for Treasury finances in the first four months of 2002 are now available. They are on a cash basis and therefore not comparable to the Treasury accounts or the fiscal budget, both of which are presented on an accruals basis. According to these figures, cash deficit from operations amounted to about 3½ billion krónur, compared to a deficit of 300 million krónur at the end of April 2001. The net financial balance was negative by 2.9 billion krónur compared with a deficit of 0.2 billion krónur at the same time last year.

The Treasury’s total revenue amounted to 77 billion krónur, which is an increase of about 5 billion krónur from last year, or 7 per cent. The Treasury´s tax revenue increased somewhat less, or by 5 per cent. In comparison, general price changes amount to 8 per cent for this period and it is therefore clear that the economy is still contracting. These figures indicate, however, that the contraction is receding. As evidence of this, revenue from value-added tax for the first quarter increased by 1½ billion krónur from last year, or by 7 per cent, equivalent to a ½ per cent contraction in real terms, compared with 8-9 per cent contraction in the first three months of the year. Excise taxes on automobiles suggests the same trend.

The Treasury’s total expenditure amounted to 80.1 billion krónur, increasing by close to 7½ billion krónur from last year, or 10.4 per cent. The main impact comes from a 3.1 billion krónur increase in health care payments. Education and cultural affairs expenditure increased by 1.1 billion krónur and administrative costs by 0.8 billion krónur.

Foreign long-term borrowing increased by 21.6 billion krónur. The share of long-term loans will be increased and short-term loans therefore will decrease in the coming months. Domestic borrowing amounted to 2.2 billion krónur. Repayments of Treasury debt amounted to 16.7 billion krónur of which 10 billion constitute repayments of foreign debt. The Treasury remitted 3 billion krónur to the Government Employees Pension Fund in order meant to lower future liabilities of the Treasury. The overall cash balance was positive by 4.3 billion krónur, compared with a 1 billion krónur surplus at the end of April last year.

Treasury finances January-April 2002

(Millions of krónur, cash basis)

1998

1999

2000

2001

2002

Revenue.............................…………........

49,973

61,272

68,029

72,307

77,246

- Asset sale

-

-376

-

-

-20

Expenditure....................…………............

49,294

54,575

59,434

72,543

80,131

Cash from operations............................

679

6,321

8,595

-236

-2,905

Financial transactions...........................

1,294

572

2,418

-1,698

540

Net financial balance……......................

1,973

6,893

11,013

-1,934

-2,366

Debt redemption.....................................

-6,532

-16,386

-18,904

-21,441

-16,696

Domestic…............................................

-6,358

-6,734

-10,114

-6,688

-6,556

Foreign..................................................

-174

-9,652

-8,790

-14,753

-10,140

Pension fund prepayments………........

0

-767

-2,000

-5,000

-3,000

Gross borrowing requirement.…..........

-4,559

-10,260

-9,891

-28,374

-22,062

New borrowing.......................................

5,415

11,036

14,080

29,417

26,343

Domestic…............................................

11,167

1,811

6,743

8,685

2,189

Foreign..................................................

-5,752

9,225

7,337

20,732

24,154

Overall cash balance………...................

856

776

4,189

1,042

4,281


Treasury revenue January-April 2002

(Millions of krónur, cash basis)

% increase from previous year

2000

2001

2002

1999

2000

2001

2002

Total tax revenue.......................

63,561

67,187

70,679

21.4

12.3

5.7

5.2

Taxes on income and profit......

20,098

23,509

25,421

14.5

21.6

17.0

8.1

Personal income tax................

14,069

15,738

18,048

12.7

14.5

11.9

14.7

Corporate income tax...............

2,258

2,942

1,710

24.4

19.9

30.3

-41.9

Other taxes on income and profit

3,771

4,829

5,663

16.6

60.0

28.1

17.3

Social Security taxes...................

6,117

6,664

7,334

19.6

6.0

8.9

10.1

Net wealth taxes..........................

2,958

3,398

3,060

10.4

12.4

14.9

-9.9

Taxes on goods and services

34,241

33,427

34,720

26.9

8.4

-2.4

3.9

Value added tax..........................

22,015

21,484

23,042

28.9

11.3

-2.4

7.3

Other indirect taxes

12,225

11,945

11,677

23.8

3.5

-2.3

-2.2

Of which:

Excise tax on motor vehicles

1,595

1,089

827

55.6

-13.9

-31.7

-24.1

Excise tax on petrol............

2,420

2,266

2,098

-0.3

14.4

-6.4

-7.4

Diesel weight tax................

1,674

1,832

1,795

20.4

18.1

9.4

-2.0

Tobacco and liquor taxex....

2,489

2,451

2,374

10.8

-1.7

-1.5

-3.1

Other indirect taxes..............

4,047

4,307

4,583

40.7

4.0

6.4

6.4

Other taxes...................................

147

189

144

-17.1

133.3

28.6

-23.8

Other revenue...............................

4,471

5,120

6,572

53.3

-4.3

14.5

28.4

Total revenue.................................

68,029

72,307

77,246

23.4

11.0

6.3

6.8


Treasury expenditure January-April 2002

(Millions of krónur, cash basis)

% increase from last year

2000

2001

2002

1999

2000

2001

2002

Administration...........................

6,915

7,198

8,712

13.1

13.1

4.1

21.0

General administration.............

4,076

4,064

4,865

17.2

12.7

-0.3

19.7

Justice and law enforcement....

2,840

3,136

3,846

7.6

13.6

10.4

22.6

Social affairs...............................

34,430

41,351

47,090

10.9

3.8

20.1

13.9

Of which: Education and culture

8,107

9,191

10,528

24.0

7.8

13.4

14.5

Health........................……

13,867

16,229

19,334

11.1

5.1

17.0

19.1

Social security……............

10,572

13,781

14,644

1.9

-0.7

30.4

6.3

Economic affairs........................

8,658

10,737

10,759

15.6

8.5

24.0

0.2

Of which: Agriculture...........……

3,644

4,239

3,812

14.6

16.3

16.3

-10.1

Communications.......…

2,719

3,716

4,253

15.1

-3.4

36.7

14.5

Interest expenditure..................

7,012

9,613

9,802

5.7

28.3

37.1

2.0

Other expenditure.....................

2,416

3,642

3,768

-3.2

30.2

50.7

3.5

Total expenditure.......................

59,434

72,543

80,131

10.7

8.9

22.1

10.5