Reykjavík City Council approves budget aiming for surplus of 1.3 billion krónur

The Reykjavík City Council approved the city’s budget late last night following over 11 hours of discussion. The budget aims for a surplus of approximately 1.3 billion Icelandic krónur for the upcoming year. Additionally, the five-year financial plan, also ratified yesterday, projects a continued increase in surplus over the next five years.

The total expenditure outlined in the budget amounts to 190.5 billion krónur. This marks the first time Mayor Einar Þorsteinsson has presented a budget proposal. He commented that Reykjavík is progressing towards its goals from the previous budget more rapidly than anticipated.

However, some council members have expressed concerns over the budget’s reliance on expected asset sales. Hildur Björnsdóttir, a representative from the Independence Party, criticized the budget, highlighting that the projected surplus hinges on the city successfully selling the Pearl, a notable landmark, for over three billion krónur by year-end. She emphasized that the revenue from significant asset sales should be allocated primarily towards debt repayment or infrastructure investments, rather than being a foundational aspect of the city’s general operations.

While there is optimism surrounding Reykjavík’s financial outlook, the discussions reveal a tension regarding fiscal strategies, particularly concerning the sale of significant properties to balance the budget. The session concluded with a commitment to uphold budgetary discipline while striving for future financial health.