Treasury finances in May 2002. Report date: June 20, 2002

Treasury finances in May, June 20, 2002 (PDF 15K)

Figures for Treasury finances in the first five 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, the cash deficit from operations amounted to 8.9 billion kronur, compared to a deficit of5.1 billion kronur by the end of May 2001. The net financial balance was negative by 8.2 billion kronur compared with a deficit of 7.2 billion kronur at the same time last year.

The Treasury’s total revenue amounted to 92 billion kronur, an increase of about 6 billion kronur from last year or 6½ per cent. The Treasury´s tax revenue increased somewhat less, or by 5½ per cent. In comparison, general price changes amount to 8 per cent for this period, indicating that the economy is still contracting although the contraction is receding. As evidence of this, revenue from value-added tax for the first five months increased by close to 2 billion kronur from last year, or by 7½ per cent, equivalent to a ½ per cent contraction in real terms, compared with a 7 per cent contraction in the corresponding period last year.

The Treasury’s total expenditure amounted to 100.7 billion kronur, increasing by close to 9½ billion kronur from last year or 10.5 per cent. The main impact comes from a 3.1 billion kronur increase in health care payments. Education and cultural affairs expenditure increased by 1.2 billion kronur and administrative costs by 1.8 billion kronur.

Foreign long-term borrowing increased by 21.6 billion kronur. In the coming months, the share of long-term debt will be increased and short-term loans will therefore decrease. Domestic borrowing amounted to 9 billion kronur. Repayments of Treasury debt amounted to 18.3 billion kronur of which 10 billion constitute repayments of foreign debt. The Treasury remitted 3.8 billion kronur to the Government Employees Pension Fund in order to lower future liabilities of the Treasury. The overall cash balance was negative by 1.9 billion kronur, compared with a 1 billion kronur deficit at the end of May last year.

Treasury finances January-May 2002

(Millions of kronur, cash basis)

Treasury revenue January-May 2002

(Millions of kronur, cash basis)

Treasury expenditure January-May 2002

(Millions of kronur, cash basis)