Garðabær reports 617 million ISK deficit in first half

Garðabær’s municipal treasury recorded a deficit of 617 million Icelandic krónur in the first six months of the year, mbl.is reports. The result was worse than forecast, as the municipality had budgeted for a surplus of 147 million krónur for the full year.

The consolidated result for Garðabær, including its A and B divisions, was a deficit of 277 million krónur. The full-year budget had projected a surplus of about 600 million krónur.

The municipality said financial expenses had significantly exceeded the annual forecast because inflation was higher than anticipated in the economic forecast. Financial expenses amounted to 1.4 billion krónur, while the full-year budget had estimated them at 1.9 billion krónur.

Almar Guðmundsson, Garðabær’s mayor, said he was optimistic that the result would improve during the second half of the year.

“We have reason to believe that the result will be better in the latter half of the year. However, we are aware of the external conditions. It is a priority to get inflation in the country under control, and naturally we intend to contribute to that effort through moderate increases in fees and financial restraint,” he said.