Front Matter
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Mrs. Sage De Clerck
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Tobias Wickens
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Abstract

MANUAL

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.

Please send orders to:

International Monetary Fund, Publication Services

P.O. Box 92780, Washington, DC 20090, U.S.A.

Tel.: (202) 623-7430 Fax: (202) 623-7201

E-mail: publications@imf.org

Internet: www.elibrary.imf.org

www.imfbookstore.org

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.

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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

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