Financial position of general government weakened by EUR 2.0 billion

In the third quarter of 2019, general government's consolidated total revenue decreased by EUR 1.1 billion compared with the corresponding quarter of the previous year. Consolidated total expenditure increased by EUR 0.8 billion from the previous year’s corresponding quarter. The difference between revenue and expenditure, that is, the net borrowing of general government rose by EUR 2.0 billion. Total revenue decreased by 0.9 per cent from the previous quarter. Total expenditure grew by 0.7 per cent from the previous quarter. In the third quarter of 2019, general government deficit (net borrowing) stood at EUR 2.9 billion. These data derive from Statistics Finland’s statistics on general government revenue and expenditure by quarter. General government is comprised of central government, local government and social security funds.

General government’s net lending (+) / net borrowing (-), trend

Changes from the respective quarter of the year before

Examinations of year-on-year changes are made with figures unadjusted for seasonal variation. In the third quarter, central government's total revenue amounted to EUR 13.2 billion and total expenditure was EUR 14.6 billion. Central government's total revenue went down by 1.4 per cent from the respective quarter of the year before. Correspondingly, central government's total expenditure went up by 0.9 per cent from the respective quarter of the year before. The difference between revenue and expenditure, that is, the central government deficit was EUR 1.4 billion.

Local government's total revenue was EUR 10.5 billion in the third quarter. Compared to the quarter of the previous year, it decreased by 11.3 per cent. Of the revenue items, sales of non-market products and property income increased. In turn, the revenue item that declined most was income taxes, which was primarily caused by a change in the tax rebate policy. In the third quarter of 2019, local government’s total expenditure was EUR 12.8 billion. It went up by 4.6 per cent. The expenditure items that grew most were other intermediate consumption and gross fixed capital formation. The difference between revenue and expenditure, that is, the deficit (net borrowing) of local government grew by EUR 1.9 billion and amounted to EUR 2.3 billion.

Social security funds include employment pension schemes and other social security funds. In the third quarter, total revenue of employment pension schemes amounted to EUR 7.6 billion and total expenditure was EUR 6.9 billion. Total revenue increased by EUR 0.4 billion or by 5.8 per cent from the corresponding quarter in the year before and total expenditure grew by EUR 0.1 billion or by 1.8 per cent. The revenue item that grew most was property income, and in expenditure, paid social benefits other than social transfers in kind. The difference between revenue and expenditure, that is, the surplus (net lending) of employment pension schemes went up by around EUR 0.3 billion from the corresponding quarter in 2018 and amounted to EUR 0.7 billion.

Other social security funds' total revenue was EUR 4.5 billion in the third quarter. Total revenue decreased by 2.6 per cent from the corresponding quarter of one year ago. The change in revenue was mainly due to a decrease in the sector’s received social security contributions. Of these, employers’ social security contributions fell by 18.8 per cent and those of households by 5.5 per cent. The expenditure of other social security funds amounted to EUR 4.4 billion and it fell by 1.3 per cent from the quarter last year. The fall was mainly due to paid social benefits other than social transfers in kind, they fell by 3.2 per cent from the year before. The difference between revenue and expenditure, that is, the surplus (net lending) of other social security funds was EUR 72 million in the third quarter.

Changes from the previous quarter

Examinations of changes compared with the previous quarter are made with seasonally adjusted figures. Central government's total revenue decreased by 0.1 per cent from the previous quarter. Central government's total expenditure fell by 1.0 per cent from the previous quarter.

Local government's total revenue went down by 4.8 per cent from the previous quarter. In turn, local government’s total expenditure grew by 0.9 per cent in the third quarter.

Employment pension schemes' total revenue went up by 2.3 per cent and total expenditure decreased by 1.2 per cent from the previous quarter. Other social security funds' total revenue decreased by 4.1 per cent and total expenditure grew by 0.7 per cent from the previous quarter.

The data for the two latest years are preliminary and will become revised as annual national accounts data are revised. Seasonally adjusted and trend time series have been calculated with the Tramo/Seats method. Seasonally adjusted and trend time series always become revised against new observations irrespective of whether the original time series becomes revised or not. Further information on the seasonal adjustment method: http://www.tilastokeskus.fi/til/tramo_seats_en.html As the time series of annual national accounts become revised, the time series of this set of statistics will also be revised. These data are based on the data sources available by 16 December 2019. The data will be next revised on 20 March 2020.

Source: General government revenue and expenditure,th quarter 2019. Statistics Finland

Inquiries: Jouni Pulkka 029 551 3532, Meri Ruuskanen 050 505 3186, rahoitus.tilinpito@stat.fi

Director in charge: Ville Vertanen

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Appendix tables

Appendix table 1. Change in general government revenue and expenditure 2019/3 (20.12.2019)

Figures

Appendix figure 1. Social benefits other than social transfers in kind (20.12.2019)
Appendix figure 2. Actual social contributions (20.12.2019)
Appendix figure 3.Current Taxes on Income, Wealth, etc., trend (20.12.2019)
Appendix figure 4. Taxes on Production and Imports (20.12.2019)
Appendix figure 5. Total revenue, trend (20.12.2019)
Appendix figure 6. Total expenditure, trend (20.12.2019)
Appendix figure 7. Final Consumption expenditure, trend (20.12.2019)
Appendix figure 8. Gross savings, trend (20.12.2019)

Revisions in these statistics

Revisions in these statistics (20.12.2019)

Updated 20.12.2019

Referencing instructions:

Official Statistics of Finland (OSF): General government revenue and expenditure by quarter [e-publication].
ISSN=1797-9382. 3rd quarter 2019. Helsinki: Statistics Finland [referred: 23.11.2024].
Access method: http://www.stat.fi/til/jtume/2019/03/jtume_2019_03_2019-12-20_tie_001_en.html