Treasury finances January - April 2002. Report date: May 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)

Treasury revenue January-April 2002

(Millions of krónur, cash basis)

Treasury expenditure January-April 2002

(Millions of krónur, cash basis)