In addition to the release of statistics for the third quarter of 2020, Statistics Iceland has carried out a comprehensive review of the time series of government financial statistics, in line with Eurostat’s recommendations. This benchmark revision is a part of a coordinated major European revision carried out at least once every five years to incorporate new data sources and major changes in methodology to insure maximum degree of consistency.
Benchmark revisions enable Statistics Iceland to include new and improved data sources and methods for the compilation of government finance statistics with the aim of maintaining and strengthening the quality of its output. This benchmark revision covers the period from 1998 to 2019.
The main emphasis of the revision was on sector classification in accordance with the European System of Accounts (ESA 2010). As a part of the revision a total of twenty-four state-owned entities previously classified outside the general government have been reclassified and are now considered as a part of the general government in national accounts.
The overall impact of the reclassifications on general government fiscal balance is generally positive, but the impact of the changes in sector classification is best reflected in statistics on general government financial assets and liabilities. The effect on general government liabilities is significant and increases by an average of 35% in the years 2017 to 2919 from previously published results. These changes can be attributed to the reclassification of the Housing Financing Fund and the institutions that took over the Fund‘s role in 2019.
In parallel to this publication of Statistical Series, Statistics Iceland published a working paper on 30 November discussing the methodological basis of sector classifications within national accounts, aimed at resolving issues regarding state-owned entities and the demarcation of the general government sector. This working paper is hereby published again.
Sector accounts time series have been updated in parallel with the revision of national accounts and government finance statistics. Time series on general government expenditure by function will be updated on 18 December 2020 and financial accounts time series will be updated on 25 January 2021.
Benchmark revision of Government Finance Statistics 1998-2019 – Statistical series