The operating profit before investments was otherwise a profit. However, the investments in two companies have led to an imbalance in the treasury’s finances. An increasing deficit is now expected in 2025.
Last year, the treasury had a deficit of 257 million kroner.
This result deviates significantly from the budgeted one. According to the Finance Act for 2024, a surplus of 284 million kroner was planned. But that is not how it turned out.
The treasury’s financial decline is due to expenses for two self-government-owned companies, explains KNR’s reliable source from the Ministry of Finance.
Half a billion to NunaGreen and Kalaallit Airports
Last year, the Treasury invested 400 million kroner in NunaGreen. In addition, 100 million kroner was given to Kalaallit Airports. These are the main reasons for the deficit.
The operating result was otherwise positive. Expenses were lower than income, resulting in an operating profit of 150 million kroner. However, it was the half a billion kroner investments in the two companies that pulled the result down.
The deficit is growing – the national treasury is in the red again
It’s not just the country’s elected officials who are facing financial headaches.
The Government of Greenland has just published a follow-up to the budget for 2025.
And it is now being warned that – just like in the previous year – a deficit is again expected in 2025. According to the follow-up, the national treasury is now expected to end up with a deficit of 347 million kroner in 2025.
The deficit is larger than what was originally forecast in connection with this year’s finance law.
When the Finance Act was passed in the autumn of last year, a deficit of 121 million kroner was planned for 2025.
Among the main reasons for the deteriorated result are that self-government-owned companies are now expected to contribute 107 million kroner less to the national treasury, that the Ministry of Health’s expenses have increased by 65 million kroner compared to the original budget, and that 59 million kroner more has been spent on pensions.
The Greenland Government has taken note of the worsening economic forecast, informs Greenland Government’s Finance Minister, Múte Bourup Egede. KNR has tried to get a comment from Greenland Government’s Finance Minister on the results for 2024 and the follow-up to the budget – but has so far been unsuccessful.