Iceland cuts to affect every area of public spending

kronur1No aspect of public spending in Iceland will be left untouched by cuts next year, according to Gudbjartur Hannesson, the chairman of the parliamentary budgetary committee.

Hannesson told Bylgjan radio yesterday that the treasury has lost 30-40 percent of its income with the fall of the banks. This needs addressing, he said.

This year’s government budget focused on shoring up income, but next year’s budget will focus more closely on controlling spending.

Hannesson particularly emphasised the likely streamlining of the education system next year. As an example he said that it cannot yet be confirmed whether it will be possible to continue providing law studies at five universities around Iceland.

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