Action Plan for Reykjavík's finances
Description of the action and objectives
Green Deal action
The action plan is based on Reykjavík City's financial policy, which is presented alongside the budget. The plan recognizes that budget deficits and challenging global economic conditions will be addressed through the growth of a dynamic urban community over the long term, combined with targeted operational measures and reduced investments compared to recent years' plans in the short term, while maintaining strong momentum for city development in line with the Green Deal. This vision emphasizes a green and growing city for people, sustainable operations, and measures to mitigate financial risks in the city's operations.
Implementation period
Ongoing projects
Status report on July 1, 2025
Reykjavík City's 2025-2029 budget, approved on Dec. 3, 2024, continues to require strict spending controls. A new procedure was introduced, emphasizing managers' and specialized councils' responsibility to prioritize services and projects within the available financial resources for the coming fiscal year. The budget is based on Reykjavík City's 2023‐2027 financial policy, with clear priorities and objectives that have been strictly followed. Financial policy indicators for Part A operations show steady improvement, and the City expects to meet this year's budget targets.
Older status reports
| Timeline | Progress description |
| July 2024 | The City's financial statements track the financial indicators outlined in the financial policy. Most goals are expected to be met by 2025. Most Section A indicators for the first six months of the year exceeded annual targets and show gradual improvement. |
| January 2023 | Alongside the proposal for the 2023-2027 financial plan, a revised financial policy and action plan were presented. |
| July 2022 | Alongside the proposal for the 2023-2027 financial plan, a revised financial policy and action plan were presented. |
Connection of action to Reykjavík City's policies:
Related actions
| Action name | Status | Completion | Updated | Departments |
|---|---|---|---|---|
| Action Plan for Reykjavík's finances | Ongoing | July 2025 | Department of Finance & Risk Management | |
| Reykjavík City Investment Plan | Ongoing | July 2025 | Department of Finance & Risk Management | |
| 10-year Infrastructure Plan | In progress | 2024 | July 2025 | Office of the Mayor & Chief Executive Officer Department of Service & Innovation |
| Gender budgeting | Ongoing | July 2025 | Human Rights and Democracy Office Department of Finance & Risk Management |
Economic objectives
- 1. Responsible financial management | Green Deal The City's Financial Policy is based on sustainability, stability, predictability, and transparency.
- 2. Dense and mixed development | Green Deal Denser, mixed housing with neighborhood sustainability at its core.
- 3. New employment opportunities of the future | Green Deal Future job opportunities are developed based on knowledge, innovation, and sustainability.
- 4. A favorable environment for business and innovation | Green Deal Good land use, diverse economy, and premises for all types of companies of all sizes.