Home > Statistics > General government deficit and debt > 2007 > Strong growth in general government surplus, debt is decreasing

Published: 29 February 2008

Strong growth in general government surplus, debt is decreasing

According to Statistics Finland's preliminary data, Finnish general government's EMU surplus grew in 2007 from the previous year's 4.1 per cent to 5.3 per cent of GDP. The last time the surplus relative to GDP was larger than this was in 2000, but at EUR 9.5 billion the euro denominated surplus is the largest ever measured. This development is based especially on the growth of the central government sector surplus from EUR 1.6 billion to EUR 3.8 billion on account of ample dividends and tax revenue. The local government's deficit contracted to EUR 0.1 billion. Employment pension funds accumulated a surplus of EUR 5.3 billion, which was on level with the year before. The surplus of other social security funds amounted to EUR 0.6 billion.

The treatment of mutual funds' capitalised property income has been revised in national accounts to correspond to the ESA95 guidelines according to which the property income earned by mutual funds from their investments is treated as income of the shareholders even if it is re-invested on their behalf. The effect of this time series revision on the general government surplus was EUR 0.5 billion and 0.3 per cent of GDP in 2007.

The euro denominated EMU debt of general government decreased by EUR 2.3 billion from the year before. This change was mainly due to decreased central government debt. The EMU debt describes general government's debt to other sectors of the economy and to the rest of the world, and it is influenced by changes in the gross debt and internal debts of the general government. In 2007, general government's total gross debt contracted by EUR 2.2 billion and its internal debts increased by EUR 0.1 billion. The share of the EMU debt of GDP fell to 35.4 per cent in 2007 from the previous year's 39.2 per cent, due to the decrease in debt as well as GDP growth.

Statistics Finland will release the contents of the deficit- and debt notification compiled in March for the European Commission on the web pages of these statistics on 28 March.

Finland's general government EMU deficit (-) and debt, percentage of GDP

Source: General government deficit and gross debt according to EMU criteria, 2007. Statistics Finland

Inquiries:
EMU deficit: Mr Mika Sainio +358 9 1734 2686
EMU debt: Ms Reetta Varjonen-Ollus +358 9 1734 3533
rahoitus.tilinpito@stat.fi

Director in charge: Mr Ari Tyrkkö

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Appendix tables

• EMU deficit of Finnish government 1975-2007 1 (29.2.2008)
• Finnish general government gross debt and EMU debt 1995-20071 (29.2.2008)
• General government EMU debt 1975-20071 (29.2.2008)

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Last updated 29.2.2008