The government sector is generally defined to encompass the authorities that are engaged in the pursuit of public purposes by providing nonmarket services and effecting income transfers financed by levies on other sectors in the economy. 2/ These functions are performed by all entities of the general government sector, which mainly comprise: (1) the central government; (2) state governments; and (3) local governments. Social security funds and departmental enterprises 3/ are also included in the definition of the general government and are treated as belonging to the level of government at which they operate. Government-owned or controlled financial institutions are classified as public financial institutions, however, rather than as part of general government.
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