Treasury

Treasury finances in March 2002. Report date: April 24, 2002.

4/24/2002

Treasury finances in March, April 24, 2002 (PDF 15K).

Figures for Treasury finances in March 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 from operations amounted to about 1/2 billion krónur, compared to 1.5 billion kronur in March 2001. The net financial balance was about even compared to a negative position of almost 4 billion kronur in March last year.

The Treasury’s total revenue is 55½ billion kronur, which is an increase of about 1½ billion kronur from last year, or almost 3 per cent. The Treasury’s tax revenue increased by a similar percentage. In comparison, general price changes amount to 9% for this period and it is therefore clear that the economy is still going through a downturn. This can also be seen from the fact that revenue from value-added tax remains relatively unchanged in value terms from March of last year, while excise taxes on automobiles decreases by one third. Revenue from personal and corporate income taxes increased considerably however in nominal terms from last year.

The Treasury’s total expenditure in March amounted to 55.9 billion krónur, increasing by close to 1/2 billion kronur from last year, or only 0.8%. Administrative and social affairs expenditure increase by a total of 5.1 billion krónur, which is offset by lower interest expenditure by 4.6 billion kronur as well as a decrease in agriculture expenditure. Since these figures only take stock of three months, any comparison with last year and earlier projections are subject to some uncertainty as expenses are transferable between months.

Domestic borrowing amounted to 5.5 billion kronur. A foreign long-term loan was financed by a loan on the foreign short-term market. A payment of 2.3 billion kronur to the Government Employees Pensions fund is meant to lower future liabilities of the Treasury. The overall cash balance was positive by 2.7 billion krónur, compared with 0.8 billion kronur in March 2001.

Treasury finances in March 2002

(Millions of krónur, cash basis)

1998

1999

2000

2001

2002

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

35,467

44,271

49,704

54,010

55,454

- Asset sale

-42

-383

-343

-73

-31

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

35,781

40,910

45,210

55,485

55,945

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

-356

2,978

4,151

-1,548

-522

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

330

-6,962

2,280

-2,203

588

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

-26

-3,984

6,431

-3,751

66

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

-2,064

-16,142

-18,356

-6,400

-10,753

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

-1,890

-6,490

-9,566

-6,355

-613

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

-174

-9,652

-8,790

-45

-10,140

Pension fund prepayments………...........

0

-500

-1,500

-3,750

-2,250

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

-2,090

-20,626

-13,425

-13,902

-12,938

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

1,618

10,092

12,604

13,113

15,634

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

5,145

751

5,234

9,433

5,515

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

-3,527

9,341

7,370

3,680

10,119

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

-472

-10,534

-821

-789

2,696


Treasury revenue in March 2002

(Millions of krónur, cash basis)

% increase from previous year

2000

2001

2002

1999

2000

2001

2002

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

46,030

50,066

51,516

23.1

13.4

8.8

2.9

Taxes on income and profit......

15,799

18,912

20,483

15.9

20.7

19.7

8.3

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

10,552

11,970

13,645

15.2

12.4

13.4

14.0

Corporate income tax

1,479

2,235

1,161

20.1

9.6

51.1

-48.1

Other taxes on income and profit

3,768

4,707

5,677

16.7

59.8

24.9

20.6

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

4,613

4,929

5,505

11.7

6.3

6.9

11.7

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

2,155

2,602

2,146

28.7

11.4

20.7

-17.5

Taxes on goods and services

23,361

23,485

23,281

30.5

10.3

0.5

-0.9

Value added tax

13,978

14,302

14,302

33.5

13.9

2.3

0.0

Other indirect taxes

9,383

9,183

8,979

26.5

5.3

-2.1

-2.2

Of which:

Excise tax on motor vehicles

1,191

833

571

59.5

-7.2

-30.1

-31.5

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

1,768

1,608

1,556

-5.1

13.8

-9.0

-3.2

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

1,491

1,668

1,573

22.0

13.7

11.9

-5.7

Tobacco and liquor taxex....

1,979

1,814

1,803

15.6

9.3

-8.3

-0.6

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

2,954

3,260

3,476

50.4

0.1

10.4

6.6

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

102

138

101

-12.7

112.5

35.3

-26.8

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

3,674

3,943

3,938

59.9

0.1

7.3

-0.1

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

49,704

54,010

55,454

25.5

12.3

8.7

2.7


Treasury expenditure in March 2002

(Millions of krónur, cash basis)

% increase from last year

2000

2001

2002

1999

2000

2001

2002

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

5,350

5,256

6,418

14.9

17.2

-1.8

22.1

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

3,226

2,880

3,798

10.8

18.4

-10.7

31.9

Justice and law enforcement.....

2,125

2,377

2,620

21.5

15.4

11.9

10.2

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

25,134

30,327

34,305

10.2

5.1

20.7

13.1

Of which: Education and culture…

6,148

7,044

8,107

28.4

6.5

14.6

15.1

Health........................……

10,126

12,011

14,220

8.0

6.4

18.6

18.4

Social security……............

7,486

9,699

10,085

0.7

1.6

29.6

4.0

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

6,422

8,403

8,069

15.9

7.4

30.8

-4.0

Of which: Agriculture.............……

2,503

3,433

3,017

9.6

6.7

37.2

-12.1

Communications.......…

2,169

2,783

3,019

8.6

0.5

28.3

8.5

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

6,434

8,868

4,282

34.4

27.5

37.8

-51.7

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

1,868

2,630

2,871

17.2

31.6

40.8

9.2

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

45,210

55,486

55,945

14.3

10.5

22.7

0.8