ríkissjóði

Ríkissjóður is the central government’s budget and treasury in Icelandic public finance. It refers to the state’s plan for revenues and expenditures and the financial operations of the central government, including cash management, financing of public services, and debt management. The concept is administered by the Ministry of Finance and Economic Affairs and is presented to Alþingi (the parliament) for approval as part of the annual budget process.

The ríkfssjóður functions as the core framework for allocating resources to public services such as health, education, social welfare, infrastructure, and other state functions. It also encompasses the management of government borrowing, debt issuance, and cash flow to ensure the state can meet its financial obligations. The budget is designed to promote macroeconomic stability, allocate resources efficiently, and implement government policy.

Revenue for the ríkið comes from a mix of sources, including taxes (such as income tax, value-added tax, and corporate tax), social contributions, fees and fines, and other non-tax revenues. Expenditures are categorized into current spending (salaries, transfers, goods and services) and capital spending (investments, capital projects). The budget is prepared within a multiyear framework to guide fiscal policy over several years.

Budget formulation involves the Ministry of Finance and Economic Affairs drafting the proposal, which is then debated and approved by Alþingi as an annual budget bill. Budget execution is monitored by government auditing bodies, notably the National Audit Office, and by parliamentary oversight to ensure transparency and accountability in public finances. The ríkið also operates within a broader fiscal framework and reporting requirements to maintain fiscal sustainability.