May surplus down to 11.5 billion kronor

The central government cash flow resulted in a surplus of 11.5 billion kronor in May, compared with a surplus of 14.07 billion kronor a year earlier, the Swedish National Debt Office said.

The May surplus was 0.9 billion kronor less than the SNDO’s most recent forecast. The May primary surplus (all government payments except interest payments) was 19.4 billion kronor, 0.3 billion less than projected, SNDO said.

It said the difference can be explained by deviations from expectations on specific payments. In particular, the government’s 6.7 billion kronor dividend from the Riksbank will be paid in June instead of May. This has been partly offset by some temporary payments, and payments that have been made earlier than expected.

Interest payments on government debt were 0.6 billion kronor more than estimated.

For the 12 months to May 31, the borrowing requirement totaled 17.4 billion kronor after corrections. Central government debt amounted to 1.246 trillion kronor at the end of May.

The SNDO said it is correcting a recurrent error in its monthly reporting of the primary borrowing requirement which dates back to November 2002. It said the cause of the error is an incorrect adjustment for certain government payments. In aggregate, the SNDO said it has reported a borrowing requirement that is 1.6 million higher than the actual.

“The error affects only the information about the borrowing requirement. Neither the borrowing transactions, the size of the government debt or the state’s debt costs are affected,” it said.