Title Page
MANUAL
GOVERNMENT FINANCE STATISTICS MANUAL 2014
2014
Copyright
© 2014 International Monetary Fund
Cataloging-in-Publication Data
Joint Bank-Fund Library
Government finance statistics manual 2014. – Washington, D.C. : International Monetary Fund, 2014.
pages; cm.
Includes bibliographical references and index.
ISBN: 978-1-49834-376-3
1. Finance, Public – Statistics – Handbooks, manuals, etc. I. International Monetary Fund.
HJ131.M26 2014
ISBN: 978-1-49834-376-3 (paper)
978-1-49837-921-2 (ePub)
978-1-49836-697-7 (Mobi pocket)
978-1-49837-916-8 (web PDF)
Disclaimer: The views expressed in this book are those of the authors and should not be reported as or attributed to the International Monetary Fund, its Executive Board, or the governments of any of its member countries.
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Contents
Foreword
Preface
Chapters
1. Introduction
Purpose of the Manual
The Evolution of International Statistical Guidelines on GFS
History
The Update of the GFSM 2001
Uses of the GFS Framework
Structure and Features of the GFS Framework
Methodological Differences with the GFSM 1986
Coverage
Basis of Recording Economic Events
Valuation
Balance Sheets
Integration of Flows and Stock Positions
The Analytic Framework
Harmonization with Other Methodologies
Implementation of the GFS Framework
Structure of the Manual
2. Institutional Units and Sectors
Introduction
Residence
Institutional Units
Definition of an Institutional Unit
Types of Institutional Units
Households
Legal and social entities
Corporations
Nonprofit institutions (NPIs)
Government units
Application of the Definition of an Institutional Unit to Government
Institutional Sectors
Defining Institutional Sectors
Nonfinancial corporations sector
Financial corporations sector
General government sector
Households sector
Nonprofit institutions serving households (NPISHs) sector
The Use of Subsectors
Institutional Coverage and Sectorization of the Public Sector
Delineating General Government and Public Corporations
The General Government Sector and Its Subsectors
Central government
State governments
Local governments
Social security funds
The Public Corporations Sector and Its Subsectors
The public corporations subsector
Government control of corporations
Types of public corporations
Public nonfinancial corporations subsector
Public financial corporations subsector
Public deposit-taking corporations
The central bank
Public deposit-taking corporations except the central bank
Other public financial corporations
Other groupings of public sector units
Decision Tree for Sector Classification of the Public Sector
Practical Application of Sector Classification Principles
Identifying Quasi-corporations
Distinguishing Head Offices and Holding Companies
Restructuring Agencies
Financial Protection Schemes
Special Purpose Entities
Joint Ventures
Sinking Funds
Pension Schemes
Provident Funds
Sovereign Wealth Funds
Market Regulatory Agencies
Development Funds and/or Infrastructure Companies or Entities
3. Economic Flows, Stock Positions, and Accounting Rules
Introduction
Economic Flows
Transactions
Monetary transactions
Nonmonetary transactions
Two-party nonmonetary transactions
Internal transactions
Rearrangements of some transactions
Rerouting
Partitioning
Reassignment
Other Economic Flows
Holding gains and losses
Other changes in the volume of assets/liabilities
Stock Positions
Economic Benefits
Ownership
Definition of Assets and Liabilities
Financial assets and liabilities
Nonfinancial assets
Accounting Rules
Type of Accounting System
Time of Recording Flows
Alternative recording bases
Using the accrual basis of recording in the Statements of Operations and Other Economic Flows, and Balance Sheet of the GFS framework
Application of the accrual principles
Time of recording and measurement of taxes and other compulsory transfers
Time of recording dividends
Time of recording transactions in goods, services, and nonfinancial assets
Time of recording transactions in financial assets and liabilities
Time of recording other economic flows
Using the cash basis of recording in the Statement of Sources and Uses of Cash
Valuation
General rule
Valuation of transactions
Valuation of stock positions
Valuation adjustments in special cases
Valuation of other economic flows
Holding gains and losses
Other changes in the volume of assets
Currency
Unit of account
Currency conversion
Domestic and foreign currency
Currency of denomination and currency of settlement
Derived Measures
Netting of Flows and Stock Positions
Consolidation
Definitions
Reasons for consolidation
Conceptual guidelines
Implementing consolidation
Consolidation in other datasets
2008 System of National Accounts
Financial statements
4. The Government Finance Statistics Analytic Framework
Introduction
Analytic Objectives
Construction of the Analytic Framework: Relation to the GFSM 1986
Components and Concepts of the Analytic Framework
The Statement of Operations
Revenue and Expense
Transactions in Nonfinancial Assets
Transactions in Financial Assets and Liabilities
The Statement of Sources and Uses of Cash
The Statement of Other Economic Flows
The Balance Sheet
Assets
Liabilities
The Statement of Total Changes in Net Worth
The Summary Statement of Explicit Contingent Liabilities and Net Implicit Obligations for Future Social Security Benefits
Annex: Using GFS for Fiscal Analysis
Introduction
Fiscal Indicators Available from the GFS Framework
Fiscal Indicators Requiring Additional Data
5. Revenue
Defining Revenue
Time of Recording and Measurement of Revenue
The Classification of Revenue
Taxes (11)
GFS tax classifications in comparison with other statistical databases
Treatment of tax refunds and tax relief
Tax attribution
Tax categories
Taxes on income, profits, and capital gains (111)
Taxes on payroll and workforce (112)
Taxes on property (113)
Taxes on goods and services (114)
General taxes on goods and services (1141)
Value-added taxes (11411)
Sales taxes (11412)
Turnover and other general taxes on goods and services (11413)
Taxes on financial and capital transactions (11414)
Excises (1142)
Profits of fiscal monopolies (1143)
Taxes on specific services (1144)
Taxes on use of goods and on permission to use goods or perform activities (1145)
Boundary with administrative fees
Boundary with taxes on business activities levied on different bases
Boundaries with other tax categories
Boundary with the acquisition or use of an asset
Other taxes on goods and services (1146)
Taxes on international trade and transactions (115)
Other taxes (116)
Social Contributions [GFS] (12)
The boundary between social contributions and other categories of taxes
Social security contributions [GFS] (121)
Other social contributions [GFS] (122)
Grants (13)
Other Revenue (14)
Property income [GFS] (141)
Interest [GFS] (1411)
Dividends (1412)
Withdrawals of income from quasi-corporations (1413)
Property income from investment income disbursements (1414)
Rent (1415)
Rent on land
Rent on subsoil assets
Boundary with rental of produced assets
Boundary with taxes
Reinvested earnings on foreign direct investment (1416)
Sales of goods and services (142)
Fines, penalties, and forfeits (143)
Transfers not elsewhere classified (144)
Premiums, fees, and claims receivable related to nonlife insurance and standardized guarantee schemes (145)
6. Expense
Defining Expense
Time of Recording Expense
The Economic Classification of Expense
Compensation of Employees [GFS] (21)
Wages and salaries [GFS] (211)
Wages and salaries in cash [GFS] (2111)
Wages and salaries in kind [GFS] (2112)
Employers’ social contributions [GFS] (212)
Actual employers’ social contributions [GFS] (2121)
Imputed employers’ social contributions (2122)
Imputed employers’ social contributions related to nonpension benefits
Imputed employers’ social contributions to employment-related pension benefits
Use of Goods and Services (22)
The boundary between use of goods and services and compensation of employees
The boundary between use of goods and services and transfers
The boundary between use of goods and services and the acquisition of nonfinancial assets
Other boundaries related to use of goods and services
Consumption of Fixed Capital [GFS] (23)
Interest [GFS] (24)
Indexation of the coupon payments only
Indexation of the amount to be paid at maturity
Subsidies (25)
Grants (26)
Social Benefits [GFS] (27)
Other Expense (28)
Property expense other than interest (281)
Dividends (2811)
Withdrawals of income from quasi-corporations (2812)
Property expense for investment income disbursements (2813)
Rent (2814)
Reinvested earnings on foreign direct investment (2815)
Transfers not elsewhere classified (282)
Current transfers not elsewhere classified (2821)
Capital transfers not elsewhere classified (2822)
Premiums, fees, and claims payable related to nonlife insurance and standardized guarantee schemes (283)
Annex: Classification of the Functions of Government
Introduction
Structure of COFOG Classifications
Uses of COFOG
Individual versus Collective Goods and Services
Units of Classification
Problems in Identifying Functions of Government
Shared Expenditure
Administrative Expenditure
Subsidies
Consumption of Fixed Capital
Cross-Classification of Expenditure
Detailed Classification of the Functions of Government
General Public Services
Defense
Public Order and Safety
Economic Affairs
Environmental Protection
Housing and Community Amenities
Health
Recreation, Culture, and Religion
Education
Social Protection
7. The Balance Sheet
Introduction
Defining Assets and Liabilities
Ownership and the Asset Boundary
Deriving Definitions for Assets and Liabilities
Valuation of Assets and Liabilities
Value Observed in Markets
Value Obtained by Accumulating and Revaluing Transactions
Present Value of Future Returns
Classification of Assets and Liabilities
Nonfinancial Assets (61)
Fixed assets (611)
Buildings and structures (6111)
Dwellings (61111)
Buildings other than dwellings (61112)
Other structures (61113)
Land improvements (61114)
Machinery and equipment (6112)
Transport equipment (61121)
Machinery and equipment other than transport equipment (61122)
Information, computer, and telecommunications equipment (ICT) (611221)
Machinery and equipment not elsewhere classified (611222)
Other fixed assets (6113)
Cultivated biological resources (61131)
Intellectual property products (61132)
Weapons systems (6114)
Inventories (612)
Materials and supplies (61221)
Work in progress (61222)
Finished goods (61223)
Goods for resale (61224)
Military inventories (61225)
Valuables (613)
Nonproduced assets (614)
Land (6141)
Mineral and energy resources (6142)
Other naturally occurring assets (6143)
Intangible nonproduced assets (6144)
Contracts, leases, and licenses (61441)
Marketable operating leases (614411)
Permits to use natural resources (614412)
Permits to undertake specific activities (614413)
Entitlement to future goods and services on an exclusive basis (614414)
Goodwill and marketing assets (61442)
Financial Assets (62) and Liabilities (63)
Monetary gold and Special Drawing Rights (SDRs) (6201, 6221, 6301, 6321)
Monetary gold (62011, 62211)
Special Drawing Rights (SDRs) (62012, 62212, 63012, 63212)
Currency and deposits (6202, 6212, 6222, 6302, 6312, 6322)
Debt securities (6203, 6213, 6223, 6303, 6313, 6323)
Loans (6204, 6214, 6224, 6304, 6314, 6324)
Equity and investment fund shares (6205, 6215, 6225, 6305, 6315, 6325)
Equity (62051, 62151, 62251, 63051, 63151, 63251)
Investment fund shares or units (62052, 62152, 62252, 63052, 63152, 63252)
Insurance, pension, and standardized guarantee schemes [GFS] (6206, 6216, 6226, 6306, 6316, 6326)
Nonlife insurance technical reserves (62061, 62161, 62261, 63061, 63161, 63261)
Life insurance and annuities entitlements (62062, 62162, 62262, 63062, 63162, 63262)
Pension entitlements [GFS] (62063, 62163, 62263, 63063, 63163, 63263)
Claims of pension funds on pension manager (62064, 62164, 62264, 63064, 63164, 63264)
Provisions for calls under standardized guarantee schemes (62065, 62165, 62265, 63065, 63165, 63265)
Financial derivatives and employee stock options (6207, 6217, 6227, 6307, 6317, 6327)
Financial derivatives (62071, 62171, 62271, 63071, 63171, 63271)
Options
Forward-type contracts
Other issues associated with financial derivatives
Swap contracts
Credit derivatives
Margins
Employee stock options (62072, 62172, 62272, 63072, 63172, 63272)
Other accounts receivable/payable (6208, 6218, 6228, 6308, 6318, 6328)
Net Worth
Memorandum Items
Net Financial Worth (6M2)
Debt
Gross debt
Gross debt at market value (6M3)
Gross debt at nominal value (6M4)
Gross debt at face value (6M35)
Net debt
Concessional loans
Arrears (6M5)
Explicit Contingent Liabilities (6M6)
Overview
One-off guarantees
Net Implicit Obligations for Future Social Security Benefits (6M7)
Nonperforming Loan Assets at Fair Value (6M8)
Classification of the Counterparty of Financial Assets and Liabilities by Institutional Sector
Classification of Debt Liabilities and Financial Assets Corresponding to Debt Instruments by Maturity
8. Transactions in Nonfinancial Assets
Introduction
Costs of Ownership Transfer
Valuation
Time of Recording
Consumption of Fixed Capital
Netting of Transactions
Classification and Recording of Transactions in Nonfinancial Assets
Fixed Assets (311)
Major improvements versus maintenance and repair
Buildings and structures (3111)
Machinery and equipment (3112)
Other fixed assets (3113)
Cultivated biological resources (31131)
Intellectual property products (31132)
Costs of ownership transfer on nonproduced assets other than land (31133)
Weapons systems (3114)
Inventories (312)
Valuables (313)
Nonproduced Assets (314)
Land (3141)
Mineral and energy resources (3142)
Other naturally occurring assets (3143)
Intangible nonproduced assets (3144)
9. Transactions in Financial Assets and Liabilities
Introduction
Valuation
Time of Recording
Netting and Consolidation of Flows
Netting
Consolidation
Arrears
Classification of Transactions in Financial Assets and Liabilities by Type of Financial Instrument and Residence
Monetary Gold and Special Drawing Rights (SDRs) (3201, 3221, 3301, 3321)
Monetary gold (32011, 32211)
Special Drawing Rights (SDRs) (32012, 32212, 33012, 33212)
Currency and Deposits (3202, 3212, 3222, 3302, 3312, 3322)
Debt Securities (3203, 3213, 3223, 3303, 3313, 3323)
Debt securities issued at par
Debt securities issued at a discount or premium
Index-linked debt securities
Debt securities with embedded derivatives
Loans (3204, 3214, 3224, 3304, 3314, 3324)
Equity and Investment Fund Shares (3205, 3215, 3225, 3305, 3315, 3325)
Equity (32051, 32151, 32251, 33051, 33151, 33251)
Privatization/Nationalization
Investment fund shares (32052, 32152, 32252, 33052, 33152, 33252)
Insurance, Pension, and Standardized Guarantee Schemes [GFS] (3206, 3216, 3226, 3306, 3316, 3326)
Nonlife insurance technical reserves [GFS] (32061, 32161, 32261, 33061, 33161, 33261)
Life insurance and annuities entitlements (32062, 32162, 32262, 33062, 33162, 33262)
Pension entitlements [GFS] (32063, 32163, 32263, 33063, 33163, 33263)
Claims of pension fund on pension manager (32064, 32164, 32264, 33064, 33164, 33264)
Provision for calls under standardized guarantee schemes (32065, 32165, 32265, 33065, 33165, 33265)
Financial Derivatives and Employee Stock Options (3207, 3217, 3227, 3307, 3317, 3327)
Financial derivatives (32071, 32171, 32271, 33071, 33171, 33271)
Employee stock options (32072, 32172, 32272, 33072, 33172, 33272)
Other Accounts Receivable/Payable (3208, 3218, 3228, 3308, 3318, 3328)
Classification of Transactions in Financial Assets and Liabilities by Sector and Residence
Classification of Debt Liabilities and Financial Assets Corresponding to Debt Instruments by Maturity
10. Other Economic Flows
Introduction
Holding Gains
Holding Gains in General
Holding Gains for Particular Types of Assets
Fixed assets (411)
Inventories (412)
Valuables (413)
Nonfinancial assets disposed of during the reporting period
Monetary gold and Special Drawing Rights (SDRs) (4201, 4221, 4301, 4321)
Financial assets and liabilities with fixed monetary values
Debt securities (4203, 4213, 4223, 4303, 4313, 4323)
Equity and investment fund shares (4205, 4215, 4225, 4305, 4315, 4325)
Insurance, pension, and standardized guarantee schemes (4206, 4216, 4226, 4306, 4316, 4326)
Financial derivatives and employee stock options (4207, 4217, 4227, 4307, 4317, 4327)
Financial assets denominated in foreign currencies
Debt instruments that do not accrue interest
Other Changes in the Volume of Assets
Appearance or Disappearance of Existing Economic Assets
The Effect of External Events on the Value of Assets
Catastrophic losses
Uncompensated seizures
Other volume changes not elsewhere classified
Fixed assets (511)
Exceptional losses in inventories (512)
Life insurance and annuities entitlements (52062, 52162, 52262, 53062, 53162, 53262)
Pension entitlements (52063, 52163, 52263, 53063, 53163, 53263)
Provisions for calls under standardized guarantee schemes (52065, 52165, 52265, 53065, 53165, 53265)
Changes in Classification
Changes in sector classification and structure
Changes in classification of assets and liabilities
Appendixes
1. Changes from the GFSM 2001 and GFSM 1986
Introduction
Changes from the GFSM 2001
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Cross-Cutting Changes in Terminology
Changes from the GFSM 1986
Introduction
Coverage of Units
Time of Recording Economic Events
Coverage of Events
Valuation
Gross and Net Recording of Flows
Integration of Flows and Stocks
Definitions and Classifications
Balancing Items
Harmonization with Other Statistical Systems
2. Social Protection
Introduction
The Nature of Social Protection
Boundary between Social Protection and Private Insurance
Classification Criteria for Social Protection Arrangements
Typology of Social Protection Arrangements
Social Assistance
Social Insurance Schemes
Social security schemes
Other employment-related social insurance schemes
Employment-related pensions and other retirement benefit schemes
Nonautonomous employment-related pension schemes
Autonomous employment-related pension schemes
Defined-benefit pension schemes
Defined-contribution pension schemes
Government assumption of employment-related pension obligations of other institutional units
Employment-related nonpension social insurance schemes
3. Debt and Related Operations
Introduction
Debt Reorganization
Debt Forgiveness
Debt Rescheduling and Refinancing
Debt rescheduling
Debt refinancing
Debt Conversion and Debt Prepayment
Debt conversion
Debt prepayment
Debt Assumption and Debt Payments on Behalf of Others
Debt assumption
Debt payments on behalf of others
Other Debt-Related Issues
Debt Write-Offs and Write-Downs
New Money Facilities
Debt Defeasance
Debt Concessionality
Debt Arising from Bailout Operations
The sectorization issue
Statistical treatment of “capital injections”
Debt of Special Purpose Entities
Debt Arising from Securitization
Debt Arising from Off-Market Swaps
On-Lending of Borrowed Funds
Stock Positions and Related Flows with the IMF
Quotas
Reserve position in the IMF
Credit and loans from the IMF
Remuneration
IMF No. 2 Account
Special Drawing Rights (SDRs)
4. Some Cross-Cutting Issues
Introduction
Leases, Licenses, Permits, and Other Contracts
Introduction
Leases
Operating leases
Financial leases
Resource leases
Licenses and Permits to Use a Natural Resource
Radio spectrum
Land
Timber
Fish
Water
Mineral and energy resources
Sharing Assets
Permits to Undertake a Specific Activity
Permits issued by government
Conditions for government permits recognized as assets
Permits to use natural resources as sinks
Contracts for future production
Leases as Assets
Public-Private Partnerships
Introduction
Determining Economic Ownership of PPP-Related Assets
Statistical Treatment
Insurance and Standardized Guarantee Schemes
Introduction
Types of Insurance and Standardized Guarantee Schemes
Defining Terminology Used in Insurance
Statistical Treatment of Nonlife Insurance and Standardized Guarantees
Flows and stock positions recorded by public sector units as nonlife insurers or guarantors
Flows and stock positions recorded by public sector units as nonlife policyholders and holders of standardized guarantees
5. Regional Arrangements
Introduction
Types of Regional Arrangements
Custom Unions
A designated agency levies, collects, and distributes the proceeds from the duties
A designated agency levies and distributes duties but member governments collect duties on behalf of the designated agency
Member governments have collective rights to levy, collect, and distribute the duties
Member governments have collective rights to levy the duty, but only one member collects and distributes the duties
Economic Unions
Introduction
Residence in an economic union
Recording some specific transactions related to regional organizations
Monetary and Currency Unions
Using the GFSM Statistical Framework under Regional Arrangements
Harmonization Requirements for GFS in Economic or Monetary Unions
6. GFS and International Public Sector Accounting Standards
Introduction
Comparison of IPSASs and GFS Reporting Guidelines
Conceptual Differences between IPSASs and GFS Reporting Guidelines
Objectives
Reporting entity
Recognition criteria
Valuation (measurement) bases
Treatment of revaluations and other volume changes
Presentation and Terminology Differences
Different names for statements
Classification structures
Minimum level of detail
Disclosure of additional information
Mapping from IPSAS financial statement aggregates to GFS aggregates
Total assets and total liabilities
Net worth
Revenue and expense
Consumption of fixed capital (assets)
Operating balance
7. GFS and Other Macroeconomic Statistics
Introduction
Overview of Similarities and Differences
Coverage and Accounting Rules
Comparison of the Analytical Frameworks of GFS and the SNA
Comparison of the Accounts in GFS and the SNA
Linkages between GFS and the SNA
Current accounts
The production account
The distribution of income accounts
The primary distribution of income account
The generation of income account
The allocation of primary income account
The secondary distribution of income account
The redistribution of income in kind account
The use of disposable income account
The accumulation accounts
The capital account
The financial account
The other changes in the volume of assets accounts
The revaluation account
The balance sheet
Comparison of the Analytical Frameworks of the GFS and the Balance of Payments and the International Investment Position
Comparison of the Accounts in GFS and Balance of Payments and the International Investment Position
Linkages between GFS and Balance of Payments and the International Investment Position
The balance of payments
The current account
The goods and services account
The primary income account
The secondary income account
The capital account
The financial account
The other changes in financial assets and liabilities account
The international investment position
Comparison of the Analytical Frameworks of the GFS and the Monetary and Financial Statistics
Comparing the Accounts in GFS and Monetary and Financial Statistics
Linkages between GFS and Monetary and Financial Statistics
Comparison of the Analytical Framework of the GFS and the System of Environmental-Economic Accounting Central Framework
Comparing the Accounts in GFS and SEEA Central Framework
The Nature of Environmental Protection Activities and Accounting
Linkages between GFS and SEEA Central Framework
Environmental payments to government
Environmental taxes
Treatment of value-added taxes
Other payments to government
Rent
Sales of goods and services
Fines and penalties
Environmental transfers by nongovernment institutional units
Permits to use environmental assets
Environmental payments by governments
Environmental subsidies and similar transfers
8. GFS Classifications
9. Glossary
Tables
3.1 Detailed Classification of Counterparty Information
4.1 Statement of Operations
4.2 Statement of Sources and Uses of Cash
4.3 Statement of Other Economic Flows
4.4 Balance Sheet
4.5 Statement of Total Changes in Net Worth
4.6 Summary Statement of Explicit Contingent Liabilities and Net Implicit Obligations for Future Social Security Benefits
4A.1 Fiscal Indicators Available from the GFS Framework
4A.2 Fiscal Indicators Requiring Additional Data
5.1 Summary Classification of Revenue
5.2 Detailed Classification of Taxes on Income, Profits, and Capital Gains (111)
5.3 Detailed Classification of General Taxes on Goods and Services (1141)
5.4 Detailed Classification of Taxes on Use of Goods and on Permission to Use Goods or Perform Activities (1145)
5.5 Detailed Classification of Taxes on International Trade and Transactions (115)
5.6 Detailed Classification of Social Contributions [GFS] (12)
5.7 Detailed Classification of Grants (13)
5.8 Detailed Classification of Interest [GFS] (1411)
5.9 Detailed Classification of Dividends (1412)
5.10 Detailed Classification of Sales of Goods and Services (142)
5.11 Detailed Classification of Transfers Not Elsewhere Classified (144)
5.12 Detailed Classification of Premiums, Fees, and Claims Receivable Related to Nonlife Insurance and Standardized Guarantee Schemes (145)
6.1 Summary Economic Classification of Expense
6.2 Detailed Classification of Compensation of Employees [GFS] (21)
6.3 Relationship between Inventories (612) and Use of Goods and Services (22)
6.4 Detailed Classification of Consumption of Fixed Capital [GFS] (23)
6.5 Detailed Classification of Interest (24)
6.6 Detailed Classification of Subsidies (25)
6.7 Detailed Classification of Grants (26)
6.8 Detailed Classification of Social Benefits (27)
6.9 Detailed Classification of Dividends (2811)
6.10 Detailed Classification of Transfers Not Elsewhere Classifieds (282)
6.11 Detailed Classification of Premiums, Fees, and Claims Payable Related to Nonlife Insurance and Standardized Guarantee Schemes (283)
6A.1 Classification of Expenditure by Functions of Government According to Divisions and Groups
6A.2 Cross-Classification of Expenditure by Functional and Economic Classifications
7.1 Balance Sheet
7.2 Summary Classification of Nonfinancial Assets
7.3 Classification of Buildings and Structures
7.4 Classification of Machinery and Equipment
7.5 Classification of Other Fixed Assets
7.6 Classification of Inventories
7.7 Classification of Other Naturally Occurring Assets
7.8 Classification of Intangible Nonproduced Assets
7.9 Classification of Financial Assets and Liabilities by Instrument and Residence of the Counterparty
7.10 Classification of Memorandum Items to the Balance Sheet
7.11 Cross-Classification of Financial Assets and Liabilities by the Institutional Sector of the Counterparty
7.12 Classification of Debt Liabilities and Financial Assets Corresponding to Debt Instruments by Maturity and by Type of Debt Instrument
8.1 Classification of Transactions in Nonfinancial Assets
9.1 Net Acquisition of Financial Assets and Net Incurrence of Liabilities Classified by Instrument and Residence of the Counterparty
9.2 Net Acquisition of Financial Assets and Net Incurrence of Liabilities Classified by Residence of the Counterparty
10.1 Statement of Other Economic Flows (Abbreviated)
10.2 Classification of Other Economic Flows
A2.1 Illustrative Recording of Flows Related to Social Assistance
A2.2 Illustrative Recording of Flows Related to Social Security Schemes
A2.3 Illustrative Recording of Flows Related to Employment-Related Pension Schemes
A2.4 Illustrative Recording of Flows Related to Employment-Related Nonpension Social Insurance Schemes
A3.1 Summary of the Statistical Treatment of On-Lending of Borrowed Funds by Institutional Unit A
A7.1 Main Differences between GFS and the SNA
A7.2 Linkages of the Statement of Operations in GFS with Sequence of SNA Transaction Accounts
A7.3 Correspondence of GFS and SNA Revenue Transaction Categories
A7.4 Correspondence of GFS and SNA Expense Transaction Categories
A7.5 Correspondence of GFS and SNA Transactions in Nonfinancial Asset Categories
A7.6 Correspondence of GFS and SNA Financial Assets and Liabilities
A8.1 Classification of Revenue
A8.2 Classification of Expense
A8.3 Classifications of Flows and Stock Positions in Assets and Liabilities
A8.4 Classifications of the Counterparty of Transactions and Stock Positions in Financial Assets and Liabilities by Institutional Sector
A8.5 Classification of Debt Liabilities and Financial Assets Corresponding to Debt Instruments by Maturity and by Type of Debt Instrument
A8.6 Classification of Expenditure by Functions of Government According to Divisions and Groups
Figures
2.1 Types of Institutional Units and Their Relation to Sectors of the Economy
2.2 The Public Sector and Its Relation to Other Institutional Sectors of the Economy
2.3 The Public Sector and Its Main Components
2.4 Decision Tree for Sector Classification of Public Entities
4.1 Structure of the GFS Analytic Framework
7.1 Net Worth in a Macroeconomic Statistics Balance Sheet
7.2 Overview of Liabilities and Contingent Liabilities in Macroeconomic Statistics
8.1 Illustrating the Treatment of Costs of Ownership Transfer on Nonproduced Assets
A2.1 Boundary between Social Protection and Private Insurance
A2.2 Typology of Social Protection
A3.1 Decision Tree for the Statistical Treatment of Debt Assumption
A3.2 Decision Tree for the Statistical Treatment of “Capital Injections”
A4.1 Illustrating the Treatment of Licenses and Permits to Use a Natural Resource
A7.1 Diagram of the Sequence of SNA Accounts
A8.1 The Classification Coding System for GFS
Boxes
2.1 Government Control of Nonprofit Institutions
2.2 Government Control of Corporations
4.1 Policy Lending
6.1 The Calculation of Consumption of Fixed Capital
6.2 Implicit Subsidies of Central Banks
6.3 Transactions with Public Corporations
A4.1 Criteria to Determine Whether a License Represents and Asset Sale or Rent
A4.2 Statistical Treatment of Permits Issued by Government: Examples
A4.3 Practical Example of Leases as Assets
A4.4 Determining the Economic Ownership of PPP-Related Assets
A4.5 Practical Applications of the Economic Ownership Concept
A5.1 Regional Arrangements in the Harmonizing of GFS
A6.1 Summary Comparison of GFS and IPSASs
A7.1 In-Kind Transactions
Index
Foreword
The international financial crisis in recent years, and the associated large fiscal deficits and rising debt levels in many countries, underscored the importance of reliable and timely statistics on the general government and public sectors. These events have shown the importance of internationally comparable data that allow detecting sources of vulnerability early and taking timely corrective measures.
One focus of the IMF’s work is on increasing the availability of key economic indicators. The IMF undertakes a range of activities for this purpose, including the IMF Statistics Department’s work to prepare manuals describing methodologies that should be used to compile economic and financial statistics. In this regard, I am pleased to introduce the third edition of the Government Finance Statistics Manual. This manual takes its place alongside the other manuals prepared by the Statistics Department, including the Balance of Payments and International Investment Position Manual, the Monetary and Financial Statistics Manual, Public Sector Debt Statistics: Guide for Compilers and Users, and the Quarterly National Accounts Manual. Like the other manuals, this manual is harmonized with the System of National Accounts 2008.
This manual represents a major step forward in clarifying the standards for compiling and presenting fiscal statistics and strengthens the worldwide effort to improve public sector reporting and transparency. Government finance statistics are a basis for fiscal analysis, and they play a vital role in developing and monitoring sound fiscal programs and in conducting surveillance of economic policies. The Executive Board of the IMF approved the use of the government finance statistics framework as the standard for presenting the Fund’s fiscal data. I therefore urge member countries to adopt the guidelines of the manual as the basis for compiling and disseminating government finance statistics, and for reporting this information to the Fund.
This manual has been prepared by the Statistics Department in close consultation with the Government Finance Statistics Advisory Committee, established to provide expert opinions from a broad range of countries and international organizations. The changes to the manual and revised text were posted on the website of the IMF for worldwide comments from compilers and users. The process underlying the revision of the manual demonstrates the spirit of international collaboration and cooperation. I would like to thank all of the experts involved for their invaluable assistance and for their collaborative and cooperative spirit.
Christine Lagarde
Managing Director
International Monetary Fund
Preface
The Government Finance Statistics Manual 2014 (GFSM 2014) is part of a series of international guidelines on statistical methodologies that have been issued by the International Monetary Fund. The Manual updates the Government Finance Statistics Manual 2001, and is the third edition of guidelines that describe a specialized macroeconomic statistical framework, the government finance statistics (GFS) framework, designed to support fiscal analysis. The Manual was produced by the IMF’s Statistics Department in fulfillment of its mission to provide strong leadership for the development and application of sound statistical practices, and is published in service of the worldwide trend toward greater accountability and fiscal transparency.
The Manual is designed for use by compilers of GFS, fiscal analysts, and other users of fiscal data. It may also be informative to compilers and users of other macroeconomic statistics in understanding the relations between the various sets of macroeconomic statistics, in particular, to compilers of the national accounts who may depend on GFS as an input to their work. The guidelines also explain the relationship of GFS with internationally accepted accounting standards and may therefore be useful for those involved in reforming government accounting systems. The Manual is focused, however, on conceptual descriptions of definitions, classifications, and conceptual guidelines for compiling and disseminating GFS, and, as such, it does not describe the methods to be used to compile the statistics.
The GFSM 2014 is supplemented by practical guidance on the compilation of the statistics provided in Government Finance Statistics: Compilation Guide for Developing Countries 2011 and Quarterly Government Finance Statistics: Guide for Compilers and Users, as well as through technical assistance and training work with individual countries. However, the text of these practical guidelines is not intended to take precedence over the methodological guidance provided in the Manual. In addition to this English language version, the Manual will be published in Arabic, Chinese, French, Russian, and Spanish.
Fiscal analysis continues to evolve in response to the growing complexity of formulating and evaluating fiscal policies. In particular, globalization increases demands for internationally comparable data, while concerns about the sustain-ability of fiscal policies increase demands for information on the balance sheets of government and the broader public sector. Moreover, because of the demand for cross-sectoral consistency in macroeconomic data, the concepts and principles set out in the Manual are harmonized with those of the System of National Accounts 2008 (2008 SNA) and the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6). For consistent guidance on debt-related issues, the GFSM 2014 is also supplemented with the Public Sector Debt Statistics: A Guide for Compilers and Users (PSDS Guide) and the External Debt Statistics: Guide for Compilers and Users 2013 (2013 EDS Guide).
The GFSM 2014 recommends disseminating fully integrated flows and stock positions, recorded on an accrual basis, while maintaining cash-flow data to allow an assessment of the liquidity constraints of government. It is recognized that the implementation of the fully integrated system described in the Manual will take some time and will need to progress at a pace determined by the differing needs and circumstances of the country involved. In particular, many countries will need to revise their underlying accounting systems to reflect the accrual basis of recording and revised classifications.
Acknowledgments
The preparation of GFSM 2014 was a complex endeavor involving a number of people with different skills who were able to build on each other’s work over an extended period. The Manual was produced under the direction of two directors of the Statistics Department: Ms. Adelheid Burgi-Schmelz (2009–2012) and Mr. Louis Marc Ducharme (2013–).
The work was supervised by Mr. Robert Heath (Deputy Director), Ms. Claudia Dziobek (Chief, Government Finance Division), and Mr. Robert Dippelsman (former Deputy Chief, Government Finance Division), all from the Statistics Department. Ms. Sagé De Clerck (Senior Economist, Government Finance Division, Statistics Department) was the primary drafter and also coordinated and edited contributions to the Manual. Many staff in the Government Finance Division contributed to the project, in particular, Mmes. Majdeline El-Rayess, Viera Karolova, Phebby Kufa, and Kara Rideout, and Messrs. Miguel Alves, Alberto Jiménez de Lucio, Gary Jones, Mike Seiferling, Philip Stokoe, Deon Tanzer, and Tobias (Murto) Wickens. Contributions were also made by former staff members and experts in GFS including Mmes. Brigitte Batschi, Paola De Rita, Irina Dubinina, and Betty Gruber, and Messrs. Ismael Ahamdanech-Zarco, Johann Bjorgvinsson, Paul Cotterell, Jean-Pierre Dupuis, Cor Gorter, Carlos Gutierrez, Héctor Hernández, Ciaran Judge, Leonard Haakman, Brooks Robinson, and Vincent Marie. Mmes. Katy Hurston and Sheridan Parsonson supported the preparation of discussion papers and prepared drafts for publication. Current and former staff from other divisions of the Statistics Department also contributed to the project, including the Balance of Payments Division (Ms. Rita Mesias and Mr. Marcelo Dinenzon); Financial Institutions Division (Messrs. Jose Cartas, Thomas Elkjaer, and Richard Walton); and Real Sector Division (Messrs. Manik Shrestha and Daniel Smith).
Current and former staff from other departments of the IMF also contributed to the Manual. In particular, collaboration between the IMF’s Statistics and Fiscal Affairs Departments is acknowledged. Contributors from the Fiscal Affairs Department included Mmes. Adrienne Cheasty, Chita Marzan, Delphine Moretti, Isabel Rial, and Christine Richmond, and Messrs. Sanjeev Gupta, Richard Hughes, Tim Irwin, Kris Kaufman, Abdul Khan, Geremia Palomba, and Shamsuddin Tareq. Contributors from the Finance Department included Mmes. Sheila Basset, Elena Budras, Mary Hoare, and Jane Mburu, and Messrs. Preet Bhullar, Claudio De Luca, Carlos Janada, and Barry Yuen. A contribution was also received from the Research Department (Mr. Manmohan Singh).
Government Finance Statistics Advisory Committee
The GFSM 2014 greatly benefited from meetings of the Government Finance Statistics Advisory Committee that were convened in February 2011 and May 2012. The GFSM 2014 benefited from the discussions, written contributions, and comments of members of the committee and the organizations they represented.
Country Members | |
---|---|
Australia | Michael Davies, Australian Bureau of Statistics |
Brazil | Felipe Bardella, Ministry of Finance |
Fabiana Magalhães Almeida Rodopoulos, Ministry of Finance | |
Canada | Kara Rideout, Statistics Canada |
Chile | Héctor Hernández, Ministry of Finance |
Côte d’Ivoire | Nicolas Kacou, Ministry of Finance |
Denmark | Søren Brodersen, Statistics Denmark |
Georgia | Pridon Aslanikashvili, Ministry of Finance |
Ghana | Nelly Mireku, Ministry of Finance and Economic Planning |
Japan | Hidehiko Futamura, Cabinet Office |
Kosuke Suzuki, Cabinet Office | |
Philippines | Teresa Habitan, Department of Finance |
Qatar | Rifaat Basanti, Ministry of Economy and Finance |
South Africa | Michael Adams, South African Reserve Bank |
Switzerland | André Schwaller |
United Kingdom | Philip Stokoe, Office for National Statistics |
United States | Pamela Kelly, Bureau of Economic Analysis |
Country Members | |
---|---|
Australia | Michael Davies, Australian Bureau of Statistics |
Brazil | Felipe Bardella, Ministry of Finance |
Fabiana Magalhães Almeida Rodopoulos, Ministry of Finance | |
Canada | Kara Rideout, Statistics Canada |
Chile | Héctor Hernández, Ministry of Finance |
Côte d’Ivoire | Nicolas Kacou, Ministry of Finance |
Denmark | Søren Brodersen, Statistics Denmark |
Georgia | Pridon Aslanikashvili, Ministry of Finance |
Ghana | Nelly Mireku, Ministry of Finance and Economic Planning |
Japan | Hidehiko Futamura, Cabinet Office |
Kosuke Suzuki, Cabinet Office | |
Philippines | Teresa Habitan, Department of Finance |
Qatar | Rifaat Basanti, Ministry of Economy and Finance |
South Africa | Michael Adams, South African Reserve Bank |
Switzerland | André Schwaller |
United Kingdom | Philip Stokoe, Office for National Statistics |
United States | Pamela Kelly, Bureau of Economic Analysis |
Representatives of International Organizations | |
---|---|
Commonwealth Secretariat of the UK | Arindam Roy |
European Central Bank | Julia Catz |
Reimund Mink | |
Gabriel Quiros | |
Hans Olsson | |
Eurostat | Luca Ascoli |
Denis Besnard | |
Francois Lequiller | |
Alexandre Makaronidis | |
Lena Frej Ohlsson | |
John Verrinder | |
International Public Sector Accounting Standards Board | Andreas Bergmann |
Ian Carruthers | |
Organisation for Economic Co-operation and Development | Nadim Ahmad |
Maurice Nettley | |
United Nations Conference on Trade and Development | Balliram Baball |
United Nations Statistical Division | Benson Sim |
West African Economic and Monetary Union | Mohamed Dhehby |
World Bank | Shaida Badiee |
Neil Fantom | |
Ibrahim Levent | |
Evis Rucaj |
Representatives of International Organizations | |
---|---|
Commonwealth Secretariat of the UK | Arindam Roy |
European Central Bank | Julia Catz |
Reimund Mink | |
Gabriel Quiros | |
Hans Olsson | |
Eurostat | Luca Ascoli |
Denis Besnard | |
Francois Lequiller | |
Alexandre Makaronidis | |
Lena Frej Ohlsson | |
John Verrinder | |
International Public Sector Accounting Standards Board | Andreas Bergmann |
Ian Carruthers | |
Organisation for Economic Co-operation and Development | Nadim Ahmad |
Maurice Nettley | |
United Nations Conference on Trade and Development | Balliram Baball |
United Nations Statistical Division | Benson Sim |
West African Economic and Monetary Union | Mohamed Dhehby |
World Bank | Shaida Badiee |
Neil Fantom | |
Ibrahim Levent | |
Evis Rucaj |
An earlier draft of the GFSM 2014 was circulated for worldwide comments and the final text benefited from the comments received from experts in member countries and other international organizations. The IMF Statistics Department gratefully acknowledges the important contribution by comments received in the process of finalizing the GFSM 2014.
Louis Marc Ducharme
Director
Statistics Department
International Monetary Fund