Preliminary results from municipalities and county councils for 2019 (corrected 2020-03-05)
Stronger performance among municipalities and regions
Statistical news from Statistics Sweden 2020-03-03 9.30
The municipal sector, which comprises municipalities and regions, reported a total net income of activities of SEK 12.6 billion in 2019, up by SEK 4 billion from a year ago. Profit/loss after financial items increased by SEK 11.4 billion, which is mainly the effect of a new valuation principle for financial assets.
A new Municipal Accounting Act (2018:597) was introduced ahead of the accounting year 2019. Among changes introduced under the new legislation, financial assets held for increase in value and yield are now reported at real value. Previously, these assets were reported according to the lowest-value principle. The new valuation principle led to a sharp increase in financial income, which had a positive effect on the 2019 profit/loss after financial items. For this reason, using net income of activities to compare with previous years is more accurate. Net income of activities consists of net operating expenditure + tax revenues + central government grants and income equalisation.
In 2019, net income of activities amounted to SEK 12.6 billion, SEK 4 billion more than in 2018, but SEK 9.4 billion less than in 2017.
Municipalities accounted for a major part of the operating surplus, reporting an operating surplus of SEK 7.3 billion. Regions reported an operating surplus of SEK 5.3 billion.
Higher income from income equalisation, central government grants, and higher tax revenue contributed to the increase in net income of activities. Large parts of the directed central government grants to regions were distributed late in the year, which means they have not had time to transform the resources into activities.
Most municipalities reported a surplus
Municipalities reported a minor increase of SEK 0.5 billion in net income of activities compared with 2018. Net operating expenditure increased, but was offset by increased tax revenue and increased central government grants and income equalisation.
Profit/loss after financial items amounted to SEK 3 billion more than in 2018, which can be mainly explained by a increase in financial income as a effect of the new valuation principles for financial assets. For the first time since 2013, extraordinary items were also positive, which contributes to the increase in the balance for the year.
At the time of publishing, data was not available for four municipalities: Dals-Ed, Färgelanda, Mellerud, and Bengtsfors.
Among municipalities that submitted data, 40.6 percent noted a negative net income of activities, which was more than a year ago, when 36.9 percent of municipalities noted a negative net income of activities.
The table below shows municipalities’ income statement with upward adjustment for the municipalities that did not submit data.
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Operational revenues | 169.1 | 164.2 | 159 |
| Operational expenditures | ‑672.8 | ‑694.9 | ‑709.2 |
| Depreciation and impairment | ‑23.1 | ‑24.1 | ‑26.1 |
| Net operational expenditures | ‑526.8 | ‑554.8 | ‑576.3 |
| Tax revenues | 453.3 | 465.8 | 482.6 |
| Economic equalisation and general grants from central government | 91.8 | 95.8 | 100.9 |
| Net operational income (surplus) | 18.3 | 6.8 | 7.3 |
| Financial revenues | 10.7 | 12.6 | 15.9 |
| Financial expenditures | ‑5.1 | ‑5.3 | ‑6.2 |
| Income statement before extraordinary items | 23.8 | 14.1 | 17.1 |
| Extraordinary items | ‑0.3 | ‑0.3 | 1.8 |
| Net income (surplus) | 23.5 | 13.8 | 18.9 |
In the table, the Region of Gotland is included to 65 percent.
Higher net income of activities among regions
in 2019, profit/loss after financial items in regions amounted to SEK 8.9 billion, which is SEK 8.4 billion more than in 2018.However, the results are not comparable, due to the introduction of the new valuation principle for financial assets. The positive development on the Swedish stock market and the new valuation principle led to a sharp increase in financial income, which had a positive effect on the 2019 balance.
Therefore, it is more accurate to compare the development of the net income of activities. In 2019, the income amounted to SEK 5.3 billion, compared with SEK 1.8 billion a year ago.
In 2019, net operating expenditure increased by 4.0 percent, which corresponds to SEK 12.7 billion. However, all income items increased, which means net income of activities nearly doubled compared with a year ago. In absolute numbers, tax revenue increased most, by SEK 12.3 billion.
In 2019, 13 out of 21 regions reported a positive net income of activities.
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Operational revenues | 57.3 | 64.9 | 71.3 |
| Operational expenditures | ‑348.0 | ‑367.3 | ‑385.5 |
| Depreciation and impairment | ‑10.5 | ‑11.4 | ‑12.3 |
| Net operational expenditures | ‑301.1 | ‑313.7 | ‑326.4 |
| Tax revenues | 250.3 | 257.9 | 270.2 |
| Economic equalisation and general grants from central government | 54.5 | 57.6 | 61.5 |
| Net income of activities | 3.7 | 1.8 | 5.3 |
| Financial revenues | 3.4 | 4.1 | 9.9 |
| Financial expenditures | ‑4.4 | ‑5.3 | ‑6.3 |
| Income statement before extraordinary items | 2.7 | 0.5 | 8.9 |
| Extraordinary items | 0.0 | 0.0 | 0.0 |
| Net income (surplus) | 2.7 | 0.5 | 8.9 |
In the table, the Region of Gotland is included to 35 percent.
Definitions and explanations
One municipality is missing in the combined surplus for the municipalities. Consequently, an estimation has been made to be able to present a total income statement for the municipalities.
Region Gotland is responsible for municipal tasks, county council tasks and also regional development. This means that it is very difficult to compare data for the income statement and balance sheet for Region Gotland with other municipalities and county councils in Sweden. Statistics Sweden has, in an attempt to comparability, estimated that 65 percent of their total activity concerns municipal activities, while 35 percent concerns county council activities. However, this is an estimation and comparisons with other municipalities and county councils should be made with caution.
The present figures are preliminary and can be revised.
Extraordinary items refer to income and expenditures that do not originate from regular activities. Income before extraordinary items is not always comparable, since what is considered as extraordinary can differ.
The figures are in current prices.
Next publishing will be
The next publication date is 17 March 2020 09:30.
More detailed accounts regarding county councils and municipalities will be presented progressively from April.
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.