Chapter 4: Workshop 2: Government Finance Statistics

International Monetary Fund
Published Date:
September 1985
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The government influences the national economy through a variety of its transactions: purchases and payments for goods and services, receipts from taxes and sales, transfer payments, and lending and borrowing transactions. To provide data on government activities for the purpose of economic analysis, these transactions are compiled and recorded as government finance statistics. While such statistics necessarily reflect the institutions and practices of the individual countries, a common system of definitions and classifications helps users of these statistics to identify more clearly the impacts of government operations on the national economy and also permits comparisons between countries. Toward this end, the International Monetary Fund has published annually since 1977 the Government Finance Statistics Yearbook, presenting standardized data on the operations of member governments.1 The definitions and standards followed in the compilation of the data are based primarily on A Manual on Government Finance Statistics,2 which has been discussed in draft form with government officials and which is to be published in revised form by the International Monetary Fund.

This workshop discusses the types of government activities to be measured and the means of measuring them, presents the analytical framework for the organization of these statistics, and shows the categories into which government transactions may be classified. It then demonstrates some practical applications of these principles with reference to data for Kenya.


No single, ideal method for organizing government financial transactions will, at the same time, serve the different purposes of accountability, financial control, and economic and financial analysis. In this section of the workshop are discussed the principles adopted in the GFS Yearbook for the purpose of facilitating economic and financial analysis. Three basic organizing principles have been identified:3

The institutional sector in the economy called government is to be defined not by legal or structural criteria but by the function it performs—primarily the provision of nonmarket services for collective consumption and the transfer of income for purposes of public policy, with funds coming mainly from compulsory levies on other sectors.

To provide data for the economic and financial analysis of government and of its effects upon the economy, one should measure—not estimate or impute—the flow of payments between this sector and the rest of the economy during a given period of time.

Because the ultimate effect of each transaction on the rest of the economy may be indeterminate or unclear, transactions should be classified not by their ultimate purpose or effect but by the immediate nature or characteristic of each transaction as it occurs.

The meaning and practical implications of each of these three principles are discussed below in some detail.

Definition of Government

Government is defined to cover all units performing government functions—that is, the implementation of public policy through the provision of primarily nonmarket services and the transfer of income, supported mainly by compulsory levies on other sectors.4

General government—the broadest definition of government—is made up of (1) central government, covering all units that are agencies or instruments of a country’s central authority, whose jurisdiction extends to all parts of its territory; (2) state, provincial, or regional governments, comprising governmental units exercising a competence independently of central government in a part of a country’s territory encompassing a number of smaller localities; (3) local governments, consisting of governmental units exercising an independent competence in the various urban and rural jurisdictions of a country’s territory; and (4) any supranational authorities exercising functions relating to tax and governmental expenditure within the national territory.

Social security funds are within the government sector, as defined above, and are treated as part of central government or other levels of government at which they operate rather than as a separate subsector of general government.5 This treatment reflects the basic similarity between social security and other government social programs and the growing integration of social security operations in the broad mix of government countercyclical, social, and economic policies.

Departmental enterprises are treated as part of the level of government to which they are attached. Departmental enterprises are unincorporated industrial, commercial, or financial units that are closely integrated with the rest of a government department or agency and that are engaged mainly in supplying goods and services to other units of government or selling goods and services to the public on a minor scale. Examples of nonfinancial departmental enterprises are printing and publishing services for government (ancillary units), government restaurants in public buildings, and rental dwellings for government employees.

Public enterprises are considered outside the government sector. Government-owned and/or government-controlled industrial or commercial units that are incorporated, or that sell goods and services to the rest of the economy on a large scale, are classified in the non-financial public enterprise sector. Examples are publicly owned railways and airlines, the postal service, and industries that are nationalized or are established by the government itself. Government-owned and/or government-controlled financial institutions that accept demand, time, or savings deposit liabilities, or both incur liabilities and acquire financial assets in the market, are classified in the public financial institutions sector.

Also excluded from government are any monetary functions performed by government, such as the issue of currency or transactions with the International Monetary Fund, and any acceptance of demand, time, or savings deposit liabilities.6 All such transactions are assigned to the public financial institutions sector, with the net flow to or from the government appearing in the statistics as a flow between the government and the public financial institutions sector.

Measurement of Government Transactions

This section discusses some basic principles for the measurement of government transactions, as adopted in the GFS Yearbook.

Cash Principle

The International Monetary Fund’s standards for compiling government finance statistics provide for entering government transactions on a cash basis; money receipts and payments should be recorded as of the time they are settled in cash.7 This reporting basis approximates the flow of funds and resources between the government and the rest of the economy, avoids problems of evaluation, corresponds closely with other financial statistics, and is therefore eminently useful for financial policy and financial programming.

In the GFS Yearbook, data for the principal aggregates—revenue, grants, expenditure, lending minus repayments, and financing—are generally on a payment or cash basis, representing government payments to or receipts from the rest of the economy during the chronological time period indicated. Data for the detailed components are based on the most reliable statistics available from the government accounts as close to the payment stage as possible. Where details are on a different basis from the cash totals, adjustment items are provided.

When purchases are made or revenues received in government debt instruments, the various parts of the operation are shown as separate transactions. For example, when a government makes a purchase for which it pays in the form of a fixed-term security or contractual obligation redeemable in cash, this is shown as an expenditure and a simultaneous borrowing transaction at that time, and then it is shown as a debt redemption when it is redeemed in cash.

Gross vs. Net Treatment of Receipts and Payments

As a general principle, nonindustrial receipts and payments should be shown on a gross basis, so that the statistics will reflect the full magnitude and impact of the raising of government revenue and its disposition.8 Thus, school fees are not counted as an offset to the cost of providing school services and are not subtracted as a “negative expenditure,” nor are the costs of collecting taxes deducted from tax receipts as “negative revenue.”

An adjustment of significant magnitude may sometimes be required when receipts and payments in the accounts are shown net of appropriations-in-aid, i.e., revenues arising in the course of operations of government departments or agencies and treated as “negative expenditures” in their accounts, with only the remaining amount shown as a cost or need for budgetary appropriation. To reflect fully the magnitude of both government revenues and expenditures, receipts and payments must be augmented by the amount of appropriations-in-aid included as “negative expenditures” in the accounts.

For industrial activities carried out by departmental enterprises, only their operating surpluses or deficits are included in government revenues or expenditures, respectively, since it is the operating surplus or deficit resulting from sales and expenditures of government industries’ production that provides income for the government or requires government outlays.9 Capital transactions of industrial activities, however, are treated on a gross basis as an integral part of the government’s operations.


In compiling government finance statistics, it is necessary to eliminate transactions between all units within the government itself and to combine in a common set of categories the sum of their transactions with the rest of the economy. This process is referred to as consolidation.

The International Monetary Fund’s standards include guidelines for assembling the transactions of the general government sector, requiring three levels of consolidation: (1) the consolidation within each government, eliminating intragovernmental transactions; (2) the consolidation of all governments at a single level, eliminating only intergovernmental transactions between regional governments or between local governments, for example; and (3) the consolidation of the central, regional, and local governments into the general government sector as a whole, eliminating intergovernmental transactions between levels of government.

Currently, however, the GFS Yearbook does not present data for consolidated general government, because of the practical difficulties in obtaining data for all subsectors in sufficient detail and without long delays. Emphasis is placed on compiling the transactions of central governments, which usually become available much earlier, with more frequency, and in far greater detail than those covering other subsectors of general government. Moreover, the central government is by far the most important subsector of general government from the standpoint of fiscal policy.

Detailed data are presented in the GFS Yearbook for consolidated central governments, as well as separately for their extrabudgetary components or social security funds. In a number of cases, however, data for central governments do not cover all central government units (as indicated at the end of the GFS Yearbook’s country notes). For state and local governments, only summary data are presented.

Classification of Government Transactions

This section outlines the analytical framework for the classification of government transactions into the major categories of the statistical system—revenue, grants, expenditure, lending minus repayments, and financing. Comments are made on the classification within each major category.10

Basic Distinctions

In the GFS Yearbook, transactions are generally classified by their characteristics at the time of payment rather than by any subsequent use. Six basic distinctions in the nature of government transactions are set forth, the cross-classification of which yields the analytical framework (see Chart 1). The first two distinctions (receipts vs. payments; repayable vs. nonrepayable) apply to all transactions. The next two distinctions (requited vs. unrequited; current vs. capital) apply only to nonrepayable transactions, and the last two distinctions (financial assets vs. liabilities; currency and deposits vs. debt and equities) apply only to repayable transactions.

CHART 1.Analytical Framework for Classification of Government Transactions

Source: Jonathan Levin, “New Tools for Measuring Government,” Finance and Development, Vol. 12, No. 2 (June 1975), p. 18.

The meaning of each distinction is briefly discussed below.11

1. Receipts vs. payments. The basic difference between transactions lies in whether they are receipts (source of funds into the government) or payments (use of funds).

2. Repayable vs. nonrepayable. Repayable transactions generate or extinguish a claim for repayment and are distinguished from nonrepayable transactions involving no claim for repayment.

3. Requited vs. unrequited. Requited transactions involve payment for a quid pro quo, such as goods, services, use or ownership of property, or factor services received in return, whereas an unrequited transaction brings no concurrent counterpart in exchange.

4. Current vs. capital. The basis for this distinction lies in the fact that use of capital goods meant to be used in the process of production, and having an economic life of more than one year, affects future income and present wealth as the capitalized present value of the future income flow.

5. Financial assets vs. liabilities. This distinction is necessary because of the asymmetry between the government’s financial assets and liabilities. While government borrowing is directed toward meeting government financial needs, government lending is generally undertaken for policy-oriented purposes and not for the management of liquidity.

6. Currency and deposits vs. debt and equities. Important differences separate currency and deposit transactions from those involving debt and equities. Government holdings of currency and deposits constitute working balances, held for liquidity purposes. Thus, they are more akin to government liabilities, which are also incurred to generate liquidity, than they are to other government financial assets. Among government liabilities, currency and deposits have a special characteristic. Any currency issues of government are considered to represent government performance of the monetary authorities function and are shown as liabilities of the monetary authorities. Similarly, any demand, time, or savings deposit liabilities accepted by the government are classified as liabilities of the financial institutions sector.

The relevance of the above distinctions becomes apparent in their delineation of the major groups of transactions.


Revenue includes all nonrepayable receipts, requited and unrequited, other than grants from other governments and international institutions. The detailed classification of revenue and grants is presented in the Appendix (Table A). Revenues are divided between current and capital revenue, the latter including only receipts from the sale of capital assets. Current revenue, therefore, embraces all tax revenue and current nontax revenue.

Taxes are defined as compulsory, unrequited, nonrepayable contributions, enacted by government for public purposes. Tax revenue is shown net of refunds paid out during the period and net of corrective transactions; however, it is not reduced by any governmental expenditure for collection and administration. Taxes also include compulsory social security contributions, as well as the profits transferred to government from fiscal monopolies, which reflect the use of the government’s taxing power to collect excise-like revenue through the monopoly sale of selected products. Tax revenue is classified into seven major categories according to the base on which the tax is levied or the kind of action that creates the liability.

Nontax revenue includes requited receipts from property income, fees and charges, nonindustrial sales, and the operating surpluses of departmental enterprises. Also included are some unrequited receipts such as fines, forfeits, and private donations.

Capital revenue covers the value of government sales of fixed capital assets, strategic stocks, and land and intangible assets.


Grants are defined as unrequited, nonrepayable, noncompulsory receipts from other governments—domestic or foreign—and international institutions. Current grants are those made for purposes of current expenditure or for general or indeterminate purposes, including both current and capital expenditure. When either donor or recipient considers the transfer to be of a capital nature, it should be treated as a capital grant.

In arriving at an overall deficit or surplus, the GFS Yearbook groups grants with revenue as transactions that reduce the deficit rather than finance it. This choice follows the approach in the United Nations’ A System of National Accounts (SNA).


Expenditure includes all nonrepayable payments by government, whether requited or unrequited and whether for current or capital purposes. Unlike the treatment in receipts, payments of grants or transfers to other governments form a category within expenditure rather than a separate group outside it.

Several of the distinctions within expenditure are of special significance to overall measures of government and economic activity. Thus, only requited payments contribute to the measurement of consumption, capital formation, and product in the SNA. The distinction between current and capital payments is essential for the measurement of government savings.

The classification of expenditure follows two main lines: the economic effect of the expenditure upon the community; and the purpose or function for which the expenditure is made. The economic classification is of particular interest for macroeconomic analysis.

In the classification of expenditure and lending minus repayments by economic type in the Appendix (Table C), prime distinctions are drawn between current and capital expenditure and between requited and unrequited payments. Current expenditure encompasses expenditure on goods and services, interest payments, and subsidies and other current transfers. Expenditures on durable goods and equipment for military purposes are classified as current expenditure, except for factories and dwellings used as households of servicemen.

Capital expenditure comprises acquisition of fixed capital assets with both a normal life of more than one year and more than a significant minimum value, purchases of strategic stocks, purchases of land and intangible assets, and capital transfers. Purchase of capital assets for use outside government, e.g., by nonfinancial public enterprises, is classified as a purchase of equities and is included as part of lending minus repayments.

In the classification of expenditure by function shown in the Appendix (Table B), expenditures are classified into nine major categories, with a number of subcategories within each. This classification focuses on the purpose for which the expenditures were made, irrespective of the government agency through which they were made.

Lending Minus Repayments

Lending minus repayments comprises government transactions in claims upon others undertaken for purposes of public policy rather than for management of government liquidity or for earning a return. It covers both debts and equities. Changes in government holdings of currency and deposits, however, are classified under financing rather than under lending minus repayments. Government lending undertaken for liquidity purposes, whether by sinking funds, social security schemes, or any other units of government, is classified under financing rather than under lending minus repayments.

In arriving at the overall deficit or surplus, the GFS Yearbook groups lending minus repayments with expenditure rather than with financing, differing in this respect from the SNA, which groups under financing all transactions affecting claims. This treatment reflects the asymmetry between government lending and borrowing. Lending, as defined above, is undertaken not to influence liquidity or to acquire a profitable financial asset, but to pursue objectives of public policy.

Lending minus repayments, which itself forms an economic category in the classification of expenditure and lending minus repayments by economic type, can also be classified by the function or purpose for which it is made. This is shown in Table B.1 of the Appendix, with categories corresponding to those for expenditure in Table B of the Appendix.


Financing, by definition, is equal to the overall deficit or surplus. In the GFS Yearbook (see Summary Table in the Appendix), the overall deficit or surplus is equivalent to the balance of revenue, grants, expenditure, lending, and repayments:

These are the items above the line; the remaining items, described as financing, would be below the line. Financing, therefore, covers all transactions involving government’s holdings of currency and deposits, government liabilities, and any financial assets held by the government for the purpose of liquidity rather than public policy. Government currency issues, as well as demand, time, and savings deposit liabilities accepted by the government, are considered to be financial institutions functions, so that any net flow of funds from these sources is classified as coming from the financial institutions sector.

Financing is divided into domestic financing, obtained from residents, and financing abroad, obtained from nonresidents. It is further classified by type of debt holder (see Table D in the Appendix) and by type of debt instrument (see Table E in the Appendix). For the purpose of economic and financial analysis, the classification by debt holder is probably the more useful one, since it groups together debt holders with homogeneous patterns of economic behavior. To the extent that debt instruments are held by groups with homogeneous patterns of economic behavior, this classification can be similarly useful.


Debt represents the outstanding stock of recognized, direct liabilities of the government to the rest of the economy and the world, generated in the past and scheduled to be extinguished by government operations in the future or to continue as perpetual debt. Excluded are intragovernmental or intergovernmental debt of the sector or subsector of government being measured, currency issues and other debt of the monetary authorities, dormant or repudiated debt not being serviced, and any floating debt of unpaid obligations.

Debt is classified by type of debt holder (see Table F in the Appendix) and by type of debt instrument involved (see Table G in the Appendix). Categories correspond to those for financing.


1. How is the overall deficit/surplus defined in the GFS Yearbook? Explain the rationale behind this definition. How does the definition for the overall deficit/surplus in your own country’s budget differ from this? What is the rationale behind the definition utilized in your country?

2. How does the GFS Yearbook treat such funds as social security funds, sinking funds, road maintenance funds, etc.? What are the major funds excluded from your own country’s budgetary accounts? What is the GFS Yearbook’s rationale for including these funds and the rationale in your own country for excluding them?

3. How are transactions with the International Monetary Fund treated in the GFS Yearbook?

4. How does the GFS Yearbook treat the distinction between capital and current expenditure? What is the rationale behind this treatment?

5. How does the GFS Yearbook treat various kinds of transactions by government involving financial claims on others? Is this treatment consistent with that discussed in the workshops on the monetary and financial survey (Workshop 1) and on the balance of payments (Workshop 3)?


This section of the workshop demonstrates some practical applications of the principles discussed above, with reference to Kenya.


The general government sector in Kenya consists of the Central Government and various local governments (see Table 1).12

TABLE 1.Kenya: Units of General Government
Ref. No.UnitsAccounts


(Table 2 Ref.)(Table 3 Ref.)
Central Government Units Covered by General Budget
1.Presidency, Legislature, Judiciary, 18 Ministries and Departments1–111,2,4,5
Central Government Units with Own Budget
2.Betting Control and Licensing Board3
3.Canning Crops Board3
4.Egerton College3
5.Horticultural Crops Development Authority3
6.Kenya Bureau of Standards3
7.Kenya Dairy Board3
8.Kenya National Parks Authorities3
9.Kenya National Theatre3
10.Kenya Sisal Board3
11.Kenya Wheat Board3
12.Museum Trustees of Kenya3
13.Nairobi University3
14.National Hospital Insurance Fund3
15.Pig Industry Board3
16.Pineapple Development Authority3
17.Pyrethrum Board3
18.Tea Board of Kenya3
19.Transport Licensing Board3
20.Miscellaneous minor boards and commissions3
Local Government
21.38 county councils11,126
22.11 municipal councils11,126
Fiscal Year: Ends June 30, except September 30 for units 9 and 17, and December 31 for units 3, 4,10,18, 21 and 22.
Liquidation or Complementary Period: None.
Basis for Recording Receipts: Cash and checks deposited.
Basis for Recording Payments: Cash paid and checks issued.
Frequency of Data: Annual.
Lag in Availability of Data: 3 months, units 9, 11, 14; 4 months, unit 1; up to 12 months, all other units.
Source: International Monetary Fund, Government Finance Statistics Yearbook, Vol. 2 (Washington, 1978), p. 147.

The central government units covered by the General Budget comprise the Presidency, the Legislature, the Judiciary, and 18 ministries and departments. There are a number of funds operated by the ministries (see Table 2), the net outcome of their transactions being reflected either as a change in balance with the ministry concerned or in cash held with the Paymaster General. Most of these funds receive their income from commercial transactions (for example, the Sugar Equalization Fund). However, in a few cases, the revenue of these funds is derived from taxes or fees of a governmental nature (for example, the Hides and Skins Cess Fund), and these transactions should be included in government data on a gross basis. In the data for the Central Government published in the GFS Yearbook, the transactions of all these funds are in fact excluded, except insofar as they receive funds from or hold balances with the ministries and departments concerned. However, the amounts involved are generally small, except where transactions are of a commercial nature and are to be netted in any case.

TABLE 2.Kenya: Government Accounts and Funds
Ref. No.Units Using Account
(Table 1 Ref.)
Controlled by Treasury
1.Appropriation Accounts. Receipts: revenue, loan repayments, and transfers from Consolidated Fund; Payments: expenditure and lending, authorized by accounting officers of Ministries.1
2.Consolidated Fund (Exchequer Account). Receipts: revenue, intragovernmental transfers and borrowing; Payments: transfers to Paymaster General’s Account and other intragovernmental transfers, authorized by Treasury.1
3.Consolidated Fund Services. Receipts: transfers from Consolidated Fund; Payments: expenditure, intragovernmental transfers and amortization, authorized by Treasury.1
4.Paymaster General’s Account. Receipts: revenue, loan repayments, and transfers from Consolidated Fund; Payments: expenditure, lending, and amortization, authorized by accounting officers of Ministries.1
5.Provident and Pension Funds. Receipts: revenue; Payments: expenditure, authorized by Treasury.1
6.Sinking Funds. Receipts: investment income and transfers from Consolidated Fund; Payments: transfers to Consolidated Fund, authorized by Treasury.1
Controlled by Other Units of Central Government
7.Education and Scholarship Fund. Receipts: investment income; Payments: expenditure and investment, authorized by Ministry of Education accounting officers.1
8.Hides and Skins Cess Fund. Receipts: revenue; Payments: intragovernmental transfers, authorized by Ministry of Agriculture accounting officers.1
9.Renewal and Maintenance Funds. Receipts: revenue and intragovernmental transfers; Payments: expenditure and intragovernmental transfers, authorized by Agriculture and Works Ministries accounting officers.1
10.Sugar Equalization Fund. Receipts: revenues; Payments: expenditure, authorized by Ministry of Commerce and Industry accounting officers.1
11.Various cash and float funds. Receipts: transfers from Consolidated Fund; Payments: intragovernmental transfers, authorized by accounting officers of Ministries.1,21,22
Controlled by Local Government
12.Accounts of County Councils and Municipal Councils. Receipts: revenue, loan repayments, grants, intergovernmental transfers, and borrowing; Payments: expenditure, lending, and amortization, authorized by designated officials.21,22
Source: International Monetary Fund, Government Finance Statistics Yearbook, Vol. 2 (Washington, 1978), pp. 147–48.
TABLE 3.Kenya: Sources of Data

1.Appropriation Accounts and Other Public Accounts (annual)
2.Estimates of Revenue and Expenditure for Kenya (annual)
Other Units of Central Government
3.Annual Reports of various statutory boards and funds
4.Economic Survey, Central Bureau of Statistics (annual)
5.Statistical Abstract, Central Bureau of Statistics (annual)
Local Government
6.Accounts and Annual Reports of County and Municipal Councils
Source: International Monetary Fund, Government Finance Statistics Yearbook, Vol. 2, (Washington, 1978), p. 148.

Also, a relatively large number of central government units have their own budgets (see Table 1), which should be consolidated with the General Budget, but at present the data for these units do not permit such a consolidation. Included here is the National Hospital Insurance Fund, which provides cash benefits for hospital treatment to employees with earnings above a certain minimum level and to their dependents. Since its revenues are also derived from nonrepayable contributions made by both employers and employees, it is to be regarded as a social security fund.

An important question on the coverage of the Central Government relates to the appropriate sectoral assignment of the National Social Security Fund (NSSF). In spite of its name, the NSSF is in fact a provident fund, fed by compulsory contributions from both employers and employees and paying lump-sum benefits in respect of age, survivors, sickness, or emigration up to the amount of the accumulated contributions made in the name of the employee, plus interest. The NSSF should not be treated as part of the social security sector, since the participants have a vested right to their accumulated individual contributions and these contributions therefore cannot be regarded as government revenue. In view of its function, the NSSF is to be regarded as a financial institution and properly belongs in the public financial institutions sector (see Table 5). Since benefit payments are low in the initial phases of operation of the pension scheme, and since the scheme has been expanded gradually to cover an increasing number of employees, the NSSF has realized large and growing annual surpluses. Most of the accumulated surpluses have been invested in government securities.

Table 4.Kenya: Nonfinancial Public Enterprises
African Diatomite IndustriesLiteira Tea Factory Co. Ltd.
Bomas of Kenya Ltd. (tourism)Livestock Marketing Division
Chianga Tea Factory Co. Ltd.Maize and Produce Board
Cotton Lint and Seed Marketing BoardMariakani Milk Scheme
East African Oil Refineries Ltd.Marsabit Lodge
East African Power and Lighting Co.MEA Garment Ltd.
Ltd.Meru Mulika Lodge
Fluorspar Co. Ltd.Ministry of Power and
Ikumba Tea Factory Co. Ltd.Communications (airport)
Imenti Tea Factory Co. Ltd.Ministry of Water Development
Kangaita Tea Factory Co. Ltd.(water supply)
Kebirigo Tea Factory Co. Ltd.Mombasa Pipeline Board
Kenya Coffee and Marketing BoardMumias Sugar Co.
Kenya Engineering Industries Ltd.Mutaara Tea Factory Co. Ltd.
Kenya Film Corp.Mwea Cotton Ginnery Ltd.
Kenya Industrial EstatesNakuru Lending Library
Kenya Mazuren Tea Co. Ltd.Nambale Ginnery Ltd.
Kenya Meat CommissionNational Construction Corp.
Kenya Mining Industries Ltd.National Irrigation Board
Kenya National PropertiesNjiru Country Club
Kenya National Trading Corp.Nyamkoba Tea Factory Co. Ltd.
Kenya National Travel BureauOJ-Kalou Salient (agriculture)
Kenya Pipeline Co.Panafric Hotel
Kenya Poultry Development Co. Ltd.Pyrethrum Marketing Board
Kenya Power Co. Ltd.Regati Tea Factory Co. Ltd.
Kenya Shipping Agency Ltd.Sera Coatings Ltd. (plastics)
Kenya Tea Development AuthoritySettlement Fund Trustees
Kenya Tourist Development Corp.Somerset Africa Ltd.
Kenya Tourist Development Corp.(clothing manufacture)
Management Co. (hotel)Tana River Development Co. Ltd.
Kenya Wine Agencies Ltd.Tegat Tea Factory Ltd.
Kibos Ginnery Ltd.Wananchi Saw Mills
Kitani Safari LodgeZimmerman Ltd. (taxidermy)
Lands Ltd.
Source: International Monetary Fund, Government Finance Statistics Yearbook, Vol. 2, (Washington, 1978), p. 148.
TABLE 5.Kenya: Public Financial Institutions
Central Bank of KenyaIndustrial and Commercial
Agricultural Development Corp.Development Corp.
Agricultural Finance Corp.Industrial Development Bank
Agricultural Settlement FundKenya Commercial Bank
Cereals and Sugar Finance Corp.Kenya National Assurance Co.
Cooperative Bank of KenyaKenya Post Office Savings Bank
Development Finance Co. of KenyaNational Bank of Kenya
First Permanent (East Africa) Ltd.National Housing Corp.
Housing Finance Co.National Social Security Fund
State Reinsurance Co.
Source: International Monetary Fund, Government Finance Statistics Yearbook, Vol. 2, (Washington, 1978), p. 148.

Local government includes 11 municipal councils and 38 county councils. In addition, there are 11 town councils which account for less than 5 per cent of the total amount spent by all local authorities. The municipalities, especially the two largest councils (Nairobi and Mombasa), provide the broadest range of services and exercise the greatest degree of local autonomy in decision making. Their functions include primary education, health services, water supply, and road construction and maintenance. The municipalities account for about three fourths of the total amount spent by all local authorities. Prior to its abolition in 1974, the graduated personal tax contributed about one third of the total revenues of municipal councils, but has now been largely replaced by central government grants. The functions of the county councils were drastically reduced when their responsibilities for primary education, public health, and roads were assumed by the Central Government in 1969. The Central Government then also took over the county council’s graduated personal tax and abolished the general grants.

There are more than 60 nonfinancial public enterprises owned or controlled by the Government of Kenya (see Table 4). In general, these are self-sufficient in their current operations, but they receive substantial loans and grants from the Central Government for development.

Central Government Budgetary Procedures

The fiscal year for the central government units covered by the General Budget runs from July 1 to June 30.13 The annual appropriation accounts of the Central Government are in two parts—the recurrent and the development budgets. The development budget consists of the estimated annual expenditures and lending of the Government under the Development Plan; these outlays are financed mainly by external loans and grants, and domestic long-term borrowing. Supplementary appropriations may be made with the approval of Parliament during the course of the year.

Government accounts, including the Recurrent Exchequer, the Development Exchequer, and the Paymaster General’s Account (see Table 2), are held with the Central Bank of Kenya. The overseas accounts of the Government consist principally of working balances held with the Crown Agents in London. Receipts of the Government, including internal and external loans, are paid into the Exchequer Accounts, and transfers from the Exchequer Accounts require the specific authority of Parliament. Treasury control over authorized expenditures is maintained through control over transfer of funds from the Exchequer Accounts to the Paymaster General’s Account, which constitute the “supply issues.” Actual payments are then made by ministries from the Paymaster General’s Account.

Data from the Exchequer Accounts, however, cannot be used to provide a complete picture of government budgetary operations, since they exclude revenue raised and spent by the government departments (known as appropriations-in-aid). In the fiscal year ended June 30, 1977, the appropriations-in-aid amounted to about 8 per cent of total government revenue. In addition, transactions reported in the Exchequer Accounts are recorded at the time the funds are received from or credited to the Paymaster General’s Account and not when they enter or leave the government sector through that account. In practice, because of the pressure to enter into commitments before the end of the fiscal year, when the “supply issues” lapse, substantial differences sometimes arise between expenditures recorded and cash payments made. Furthermore, it is not possible to make an economic or functional analysis of government expenditure according to the GFS Yearbook system from the data as recorded in the Exchequer Accounts, and only a limited analysis of revenue can be made.

In order to obtain government data according to GFS Yearbook formats, it is necessary, therefore, to turn to the Appropriation Accounts. In the data derived from the Appropriation Accounts and published in the GFS Yearbook, revenues are recorded at the time the funds are received by the Receivers of Revenue and payments are recorded at the time checks drawn on the Paymaster General’s Account are issued.

Statistical Tables

Table 6 presents government finance statistics tables for Kenya. These comprise the Summary Table: Budgetary Central Government and Tables A through G, showing the details of budgetary central government revenue, grants, expenditure, lending minus repayments, financing, and debt. The time series presented in these tables cover the five fiscal years 1973–77. For local governments, only summary data are presented.

Table 6.Kenya: Government Finance Statistics Tables, Fiscal Years 1973–77(In millions of Kenya shillings)
(Year ending June 30)
Summary Table:
Budgetary Central Government
1Total revenue and grants (A.I)2,827.63,696.24,521.45,324.56,383.3
2Total revenue (A.II)2,817.33,625.24,347.05,123.36,149.1
3Current revenue (A.III)2,816.03,625.24,346.85,122.96,148.6
3.1Tax (A.IV)2,318.43,187.13,943.44,571.15,296.8
3.2Nontax (A.V)497.6438.1403.4551.8851.8
4Capital revenue (A.VI)
5Grants (A.VII)10.371.0174.4201.2234.1
5.1Current (A.17.1 + A.18.1
+ A.19.1)
5.2Capital (A.17.2 + A.18.2
+ A.19.2)5.864.5164.6140.2210.4
6Total expenditure and lending
minus repayments (C.I)3,729.84,282.85,673.17,033.77,710.3
7Total expenditure (C.II)3,428.23,936.55,179.36,163.67,240.0
8Current expenditure (C.III)2,618.03,078.94,079.24,904.45,579.9
9Capital expenditure (C.IV)810.2857.61,100.11,259.21,660.1
10Lending minus repayments (C.V)301.6346.3493.8870.1470.3
11Current account surplus
(without grants) (3 - 8)198.0546.3267.6218.5568.7
12Gross fixed capital formation
13Gross capital formation
(C.4 + C.5-A.14-A.15)783.7823.4950.31,059.01,387.5
14Overall deficit/surplus (1 - 6)−902.2−586.6−1,151.7−1,709.2−1,327.0
15Financing (D.I or E.I) (= 14)902.2586.61,151.51,709.21,327.0
16Abroad (D.III or E.III)428.8208.8311.8638.6463.6
17Domestic (D.II or E.II)473.4377.8839.71,070.6863.4
17.1Nonbank(D.1+D.4 + D.5)
17.2Deposit money banks (D.3)
17.3Monetary authorities (D.2)
Memorandum Items:
18Government debt at end
of period (F.I or G.I)4,728.75,309.26,232.08,014.88,848.0
21Amortization abroad63.671.189.599.4131.8
Table A. Revenue and Grants:
Budgetary Central Government
ITotal revenue and grants
(ll + VII)2,827.63,696.24,521.45,324.56,383.3
IITotal revenue (III + VI)2,817.33,625.24,347.05,123.36,149.1
IIICurrent revenue (IV + V)2,816.03,625.24,346.85,122.96,148.6
IVTax revenue2,318.43,187.13,943.44,571.15,296.8
1Tax on income, profits, and
capital gains1,069.01,154.61,531.31,796.72,149.3
Graduated personal tax65.029.8
2Social security contributions
3Taxes: Payroll or manpower
4Taxes on property8.710.
4.3Estate, inheritance, and
gift taxes8.710.
Estate duty8.710.
5Domestic taxes on goods and
5.1General sales, turnover, or
value-added tax54.1639.8937.31,185.51,308.4
Sales tax54.1639.8937.31,185.51,308.4
Petrol tax47.1
Traditional liquor tax1.81.0
Beer tax53.8
Cigarette tax13.5
Other consumption taxes40.52.9
Excise duties336.8416.9453.5412.6564.4
Second-hand vehicle
purchase tax8.
5.4Taxes on specific services30.635.040.541.948.0
Airport pasenger tax8.
Hotel accommodation tax15.217.519.423.528.4
Betting tax3.
Entertainment tax2.
Casino tax1.
5.5Taxes on use of, or
permission to use, goods74.378.977.585.998.4
5.5.1Business and professional
5.5.2Motor vehicle taxes52.053.255.357.266.5
Licenses under Traffic Act50.451.9
Licenses under Transport
License Act0.80.5
Fees under Traffic Act0.80.8
6Taxes: International trade,
6.1Import duties539.9795.4842.2983.61,057.2
6.2Export duties13.6
7Other taxes26.744.341.348.550.1
7.2Stamp taxes26.744.341.348.550.1
VNontax revenue497.6438.1403.4551.8851.8
9Property income219.1156.8144.1238.0305.6
9.1Nonfinancial public enterprises
and public financial institutions60.449.824.0122.293.5
Central bank surplus60.449.824.0122.293.5
10Administrative fees and charges
and nonindustrial sales207.5201.4160.7194.8382.8
11Fines and forfeits15.818.620.027.148.6
Renewals Fund revenue1.635.945.861.2
Transfers from households0.30.29.510.611.9
VICapital revenue1.
Sales of fixed capital assets0.20.40.5
16Sales of land and intangible assets1.30.6
17From abroad other than
supranational authorities10.371.0173.6184.9231.3
18From other levels of Government0.816.32.8
Table B. Expenditure by Function:
Budgetary Central Government
ITotal expenditure (same as C.II)3,428.23,936.55,179.36,163.67,240.0
1General public services615.4682.4903.31,111.21,241.5
5Social Security and welfare78.298.412.613.113.9
5.1–6Social Security and assistance78.298.412.613.113.9
6Housing and community amenities45.156.657.640.143.5
6.2Community development6.813.123.021.829.3
7Other community and
social services91.2109.2107.0142.1161.8
8Economic services1,047.71,166.61,561.41,944.02,082.9
8.1General administration,
regulation, and research9.48.794.9109.592.3
8.2Agriculture, forestry, fishing211.1325.0392.9640.9723.2
8.3Mining, manufacturing, and
8.4Electricity, gas, steam, and water76.679.6112.8215.5254.6
8.6Inland and coastal waterways33.47.18.6
8.7Other transportation and
8.8Other economic services119.185.1118.994.794.8
9Other purposes248.7327.1497.9606.6669.1
Table B.1. Lending by Function:
Budgetary Central Government
ITotal lending minus
repayments (C.V)301.6346.3493.8870.1470.3
Total gross lending341.0384.8532.1913.8540.1
1General public services1.0
3.3Universities and colleges33.336.538.7
6Housing and community amenitie69.874.565.781.764.9
6.2Community development7.97.0
7Other community and
social services0.7
8Economic services236.6290.4396.4733.5356.0
8.2Agriculture, forestry, fishing135.0129.7277.6188.8122.5
8.3Mining, manufacturing, and
8.4Electricity, gas, steam, and water23.263.911.7
8.7Other transportation and
8.7.1Other transportation0.122.7
8.8Other economic services100.5136.993.6478.6130.3
9Other purposes34.619.935.662.279.8
Table C. Expenditure and Lending
Minus Repayments by Economic Type:
Budgetary Central Government
ITotal expenditure and lending
minus repayments (II + V)3,729.84,282.85,673.17,033.77,710.3
IITotal expenditure (III + IV)3,428.23,936.55,179.36,163.67,240.0
IIICurrent expenditure2,618.03,078.94,079.24,904.45,579.9
1Expenditure on goods and
1.1Wages and salaries1,414.61,604.5
1.2–3Employers’ contributions13.417.522.0
1.4Other purchases of goods and
2Interest payments212.7239.5290.6390.7479.1
3Subsidies and other current
3.3Transfers to other levels of
National Government96.1
3.6Transfers abroad10.618.224.519.626.3
IVCapital expenditure810.2857.61,100.11,259.21,660.1
4Acquisition of fixed capital assets783.7823.4950.61,059.41,388.0
6Purchases of land and
intangible assets26.534.2138.2173.8271.9
7Capital transfers11.326.00.2
7.1.1To other levels of National
VTotal lending minus repayments301.6346.3493.8870.1470.3
8.1To other levels of Government144.9433.9160.8
Table D. Financing by Type of Debt Holder:
Budgetary Central Government
ITotal financing (II +III)902.2586.61,151.51,709.21,327.0
IIDomestic financing473.4377.8839.71,070.6863.4
IIIFinancing abroad428.8208.8311.8638.6463.6
From international development
From foreign governments85.059.4108.2269.2258.1
Other foreign borrowing242.1124.585.895.1112.8
Table E. Financing by Type of Debt Instrument:
Budgetary Central Government
ITotal financing (same as D.I)902.2586.61,151.51,709.21,327.0
IIDomestic financing (same as D.II)473.4377.8839.71,070.6863.4
1Long-term bonds367.0323.9218.4925.4385.5
2Short-term bonds and bills136.1−57.874.3481.6552.0
3Long-term loans n.e.c.−1.7−0.5−0.5
4Short-term loans and
advances n.e.c.180.1303.142.2
6Changes in cash, deposits, etc.−29.7111.7368.6−639.0−115.8
IIIFinancing abroad (same as D.III)428.8208.8311.8638.6463.6
7Long-term bonds−3.7−4.3−19.0
9Long-term loans n.e.c.315.5643.0482.6
Table F. Outstanding Debt by Type of Debt Holder:
Budgetary Central Government
(at end of period)
ITotal debt (II+III)4,728.75,309.26,232.08,014.88,848.0
IIDomestic debt2,193.62,578.02,878.03,814.34,266.7
1Other levels of Government1,242.21,465.21,793.52,166.02,517.3
2Monetary authorities284.7366.2343.1927.0954.6
3Deposit money banks218.9204.8194.6177.8173.9
4Other domestic447.8541.8546.8543.5620.9
4.3Nonfinancial private sector234.0275.5404.0400.4430.5
IIIForeign debt2,535.12,731.23,354.04,200.54,581.3
6International development
7Foreign governments1,537.41,644.61,813.41,997.72,312.4
8Other foreign424.1424.1620.5625.3548.2
8.1Bank loans and advances141.3146.4105.8
Table G. Outstanding Debt by Type of Debt Instrument:
Budgetary Central Government
(at end of period)
ITotal debt (same as F.I)4,728.75,309.26,232.08,014.88,848.0
IIDomestic debt (same as F.II)2,193.62,578.02,878.03,814.34,266.7
1Long-term bonds1,984.42,370.32,672.13,608.84,065.8
3Long-term loans n.e.c.209.2207.7206.0205.5201.0
IIIForeign debt (same as F.III)2,535.12,731.23,354.04,200.54,581.3
6Long-term bonds424.1424.1392.9
8Long-term loans n.e.c.2,929.93,776.34,188.4
Summary Table:
Other Levels of Government:(Year ending December 31)
Local Governments
2.1From other levels of Government29.287.198.2103.3105.7
5Deficit/surplus (1 + 2) - (3)−19.510.554.020.9−44.5
Source: International Monetary Fund, Government Finance Statistics Yearbook, Vol. 2 (Washington, 1978), pp. 146–47.Note: n.e.c = not elsewhere classified.


Exercise A

  • Data on the budgetary operations of the Central Government of Kenya in the fiscal year ended June 30, 1977 are provided below. On the basis of these data, derive the following principal aggregates for fiscal year 1977: (a) revenue, (b) grants, (c) expenditure, (d) lending minus repayments, and (e) financing, as shown in the Summary Table: Budgetary Central Government of Table 6.

Kenya: Data on Budgetary Operations1(In millions of Kenya shillings)
Receipts on recurrent and development accounts,2

net of applied appropriations-in-aid
Payments on recurrent and development accounts,3

net of applied appropriations-in-aid
Appropriations-in-aid applied on recurrent and

development accounts
Interdepartmental transfers included with receipts

on recurrent account
Interdepartmental transfers included with payments

on recurrent account
Revenue of departmental enterprises with an

operating deficit4
Transfers from abroad and other levels of Government234.1
Domestic short-term and long-term borrowing6,180.7
Repayment of government lending69.8
Long-term borrowing abroad595.4
Domestic debt amortization5,201.5
Purchase of equity and loans granted540.1
Foreign debt amortization131.8
Increase in cash balances115.8

Exercise B

  • Explain how you would classify the following items in the Appropriation Accounts, Other Public Accounts and the Accounts of the Funds for the Year 1976/77, with reference to Table A or C or D of Table 6.

    • Personal emoluments

    • Construction of buildings and works for Armed Forces

    • Equity participation in commerce and industry

    • Central Bank of Kenya profits

    • Purchase of locomotives and wagons for Kenya Railways

    • Loan from the International Monetary Fund

    • Capital contributions relating to government shareholding in banks

    • Rent of government buildings and houses

    • Traveling and accommodation expenses

    • Refund of import duties

    • Passages and leave expenses

    • Loan interest receipts

    • Purchase of land

    • Construction of water supplies

    • Scholarships to students

    • Pensions and gratuities

    • Subvention to Maize and Produce Board

    • Government sinking fund contribution

      • (a) For external debt redemption

      • (b) For internal debt redemption

    • New building for the Treasury

    • Appropriations-in-aid

      • (a) Sale of machinery and equipment

      • (b) Sale of farm produce

      • (c) School fees

Exercise C

  • The following data on the domestic financing operations of Budgetary Central Government can be obtained from the Appropriation Accounts, Other Public Accounts and the Accounts of the Funds for the Year 1976/77.

From these data, derive the classification and amounts of domestic financing by type of debt instrument for the year ended June 30, 1977, as shown in Table E of Table 6. Indicate what additional information would be needed to prepare a classification of domestic financing by type of debt holder.

Kenya: Data on Domestic Financing Operations(In millions of Kenya shillings)
Issue of tax reserve certificates77.5
Surrender of tax reserve certificates25.5
Advances from Cereals and Sugar Finance Corporation823.2
Repayment of advances from Cereals and Sugar Finance Corporation693.0
Repayment of advances from Central Bank of Kenya88.0
Receipts from issue of Treasury bills4,780.0
Repayment of Treasury bills4,280.0
Proceeds of 1982 and 1991/92 Kenya stocks500.0
Amortization of long-term domestic debt secured by marketable instruments114.5
Amortization of long-term domestic debt not secured by marketable instruments0.5


  • To what extent are the data on Central Government presented in the GFS Yearbook incomplete in terms of coverage and reporting basis?

  • What is the rationale for the different sectoral treatments of the National Social Security Fund and the National Hospital Insurance Fund?

  • Comment on the practical problems that would be encountered in preparing a consolidated statement for Budgetary Central Government and local governments on the basis of the data in the GFS Yearbook.

  • The item “Changes in Cash, Deposits, etc.” in the GFS Yearbook (Table E of Table 6) is essentially determined as a residual from the Government’s accounts. It may be compared with the actual movements in government deposits with the banking system as follows: Comment on the possible reasons for the discrepancies between the data derived from the Government’s accounts and those obtained from the monetary accounts.

  • On the basis of the data in the GFS Yearbook tables presented above, determine the changes in the net financial position of Budgetary Central Government for the fiscal years 1973—77, vis-à-vis:

  • (a) The rest of the domestic economy

  • (b) The foreign sector

  • Comment on the significance of these changes in the context of a flow-of-funds analysis.

  • 6. Discuss the problems encountered in comparing the data on financing by type of debt holder (Table D of Table 6) and by type of debt instrument (Table E of Table 6) with the changes in the corresponding stocks of debt in Tables F and G of Table 6. What factors may account for the discrepancies between the figures for domestic and external financing by long-term bonds and long-term loans not elsewhere classified in Table E of Table 6 and the changes in the corresponding stocks in Table G of Table 6?

  • 7. With reference to the data presented in the Summary Table: Budgetary Central Government of Table 6, comment on overall budgetary developments over the period 1973—77. In particular, to what extent are the developments in fiscal year 1977 consistent with the objectives of reducing the pressure on domestic prices and the balance of payments and diverting more resources to economic development? Indicate what additional information, if any, would be desirable for discussing this issue.

(In millions of Kenya shillings; year ending June 30)
Changes in cash, deposits, etc.1 (increase —)−29.7111.7368.6−639.0−115.8
Changes in deposits2 (increase —)
With Central Bank−116.0−3.0443.0−670.0−494.0
With commercial banks8.0−16.016.0−26.0−19.0

Government Finance Statistics Tables

Data Fund Codes, Line Numbers, and Titles of Lines in the GFS Yearbook
Summary Table
811Total Revenue and Grants (A.I)
81Y2Total Revenue (A.II)
81YD3Current Revenue (A.III)
81YA3.1Tax (A. IV)
81YB3.2Nontax (A.V)
81YC4Capital Revenue (A.VI)
81Z5Grants (A.VII)
81ZN5.1Current (A.17.1 +A.18.1 +A.19.1)
81ZP5.2Capital (A.17.2+A.18.2+A.19.2)
82Z6Total Expenditure and Lending Minus Repayments (C.I)
827Total Expenditure (CM)
82R8Current Expenditure (C.III)
82V9Capital Expenditure (CIV)
8310Lending Minus Repayments (C.V)
80S11Current Account Surplus or Saving (Without Grants) (3 - 8)
82SA12Gross Fixed Capital Formation (C.4-A.14)
82SB13Gross Capital Formation (C.4 + C.5-A.14-A.15)
8014Overall Deficit/Surplus (1 -6)
80H15Financing (D.I or E.I) (=14)
8516Abroad (D.III or E.III)
8417Domestic (D.II or E.II)
84AB17.1Nonbank (D.1+D.4+D.5)
84C17.2Deposit Money Banks (D.3)
84D17.3Monetary Authorities (D.2)
Memorandum Items:
88Z18Government Debt Outstanding (F.I or G.I)
84Q19Change in Floating Debt
84P20Domestic Amortization
85P21Amortization Abroad
Table A. Revenue and Grants
81ITotal Revenue and Grants (ll+VII)
81YIITotal Revenue (III+VI)
81YDIIICurrent Revenue (IV+V)
81 YAIVTax Revenue
81A1Taxes on Income, Profits, and Capital Gains
81AZ1.3Other Unallocable
81B2Social Security Contributions
81BC2.3Self-Employed or Nonemployed
81C3Employers’ Payroll or Manpower Taxes
81D4Taxes on Property
81DW4.1Recurrent Taxes on Immovable Property
81DH4.2Recurrent Taxes on Net Wealth
81 DC4.2.1Individual
81DK4.3Estate, Inheritance, and Gift Taxes
81DG4.4Taxes on Financial and Capital Transactions
81DX4.5Nonrecurrent Taxes
81DZ4.6Other Recurrent
81E5Domestic Taxes on Goods and Services
81EA5.1General Taxes, Turnover, or Value-Added Taxes
81 EG5.2Excises
81 EH5.3Profits of Fiscal Monopolies
81ER5.4Taxes on Specific Services
81ES5.5Taxes on Use of, or Permission to Use,
Goods or to Perform Activities
81ET5.5.1Business and Professional Licenses
81EU5.5.2Motor Vehicle Taxes
81F6Taxes on International Trade and Transactions
81FG6.1Import Duties
81 FA6.1.1Customs Duties
81FB6.1.2Other Charges
81FC6.2Export Duties
81FD6.3Profits of Export or Import Marketing Boards
81FE6.4Exchange Profits
81FF6.5Exchange Taxes
81G7Other Taxes
81GA7.1Poll Taxes
81GB7.2Stamp Taxes
81YBVNontax Revenue
81K8Operating Surpluses of Departmental Enterprises
81H9Property Income
81 HA9.1From Nonfinancial Public Enterprises and
Public Financial Institutions
81JA10Administrative Fees and Charges and Nonindustrial Sales
81JH11Fines and Forfeits
81MM12Contributions to Government Employee
Pension Funds Within Government
81YCVICapital Revenue
81 MA14Sales of Fixed Capital Assets
81MB15Sales of Stocks
81MC16Sales of Land and Intangible Assets
81ZA17From Abroad other than from Supranational Authorities
81ZG18From Other Levels of National Government
81 ZD19From Supranational Authorities
Table B. Expenditure by Function
82ITotal Expenditure (same as CM)
82A1General Public Services
82CB3.2Schools (preprimary, primary, and secondary)
82CF3.3Universities and Colleges
82DB4.2Hospitals and Clinics
82DC4.3Individual Health Services
82E5Social Security and Welfare
82EQ5.1–6Social Security and Assistance
82F6Housing and Community Amenities
82FB6.2Community Development
82FC6.3Sanitary Services
82G7Other Community and Social Services
82H8Economic Services
82HA8.1General Administration, Regulation n.e.c, and Research
82HB8.2Agriculture, Forestry, Fishing, and Hunting
82HC8.3Mining, Manufacturing, and Construction
82HD8.4Electricity, Gas, Steam, and Water
82HF8.6Inland and Costal Waterways
82HG8.7Other Transportation and Communication
82HE8.7.1Other Transportation
82HH8.8Other Economic Services
82K9Other Purposes
Table B.1. Lending Minus Repayments by Function
83ITotal Lending Minus Repayments (same as C.V)
83A1General Public Services
83CB3.2Schools (preprimary, primary, and secondary)
83CF3.3Universities and Colleges
83DB4.2Hospitals and Clinics
83DC4.3Individual Health Services
83E5Social Security and Welfare
83EQ5.1–6Social Security and Assistance
83F6Housing and Community Amenities
83FB6.2Community Development
83FC6.3Sanitary Services
83G7Other Community and Social Services
83H8Economic Services
83HA8.1General Administration, Regulation n.e.c, and Research
83HB8.2Agriculture, Forestry, Fishing, and Hunting
83HC8.3Mining, Manufacturing, and Construction
83HD8.4Electricity, Gas, Steam, and Water
83HF8.6Inland and Coastal Waterways
83HG8.7Other Transportation and Communication
83HE8.7.1Other Transportation
83HH8.8Other Economic Services
83K9Other Purposes
Table C. Expenditure and Lending Minus
Repayments by Economic Type
82ZITotal Expenditure and Lending Minus
Repayments (II+V)
82IITotal Expenditure (IM + IV)
82RIIICurrent Expenditure
82N1Expenditure on Goods and Services
82NA1.1Wages and Salaries
82NX1.2–3Employers’ Contribution
82NP1.4Other Purchases of Goods and Services
82PA2Interest Payments
82PJ3Subsidies and Other Current Transfers
82PM3.3Transfers to Other Levels of National Government
82PP3.6Transfers Abroad
82VIVCapital Expenditure
82VA4Acquisition of Fixed Capital Assets
82VB5Purchases of Stocks
82VC6Purchases of Land and Intangible Assets
82U7Capital Transfers
82UB7.1.1To Other Levels of National Government
83VTotal Lending Minus Repayments
83NG8.1To Other Levels of National Government
Memorandum Item:
82P10Expenditure Abroad (Excluding Transfers,
Interest, and Lending Minus Repayments)
Table D. Financing by Type off Debt Holder
80HITotal Financing (II + III)
84IIDomestic Financing
84B1From Other General Government
84D2From Monetary Authorities
84C3From Deposit Money Banks
84A4Other Domestic
84AE4.1From Other Financial Institutions
84AG4.2From Nonfinancial Public Enterprises
84AJ4.3From Nonfinancial Private Sector
85IIIFinancing Abroad
85A6From International Development Institutions
85B7From Foreign Governments
85C8Other Foreign Borrowing
85N9Changes in Cash, Deposits, Negotiable Securities
Table E. Financing by Type off Debt Instrument
80HITotal Financing (same as D.I)
84IIDomestic Financing (same as D.II)
84R1Long-term Bonds
84S2Short-term Bonds and Bills
84T3Long-term Loans n.e.c.
84U4Short-term Loans and Advances
84V5Other Liabilities
84W6Changes in Cash, Deposits, etc.
85IIIFinancing Abroad (same as D.III)
85R7Long-term Bonds
85S8Short-term Bonds and Bills
85T9Long-term Loans n.e.c.
85U10Short-term Loans and Advances n.e.c.
85V11Other Liabilities
85W12Changes in Cash, Deposits, etc.
Table F. Outstanding Debt by Type of Debt Holder
88ZITotal Debt (II + III)
88IIDomestic Debt
88B1Other Levels of Government
88D2Monetary Authorities
88C3Deposit Money Banks
88A4Other Domestic
88AJ4.3Nonfinancial Private Sector
88X5Adjustment for Valuation Differences
89IIIForeign Debt
89A6International Development Institutions
89B7Foreign Governments
89C8Other Foreign
89CQ8.1Bank Loans and Advances
89CR8.2Supplier Credits
89X9Adjustment for Valuation Differences
Memorandum Items:
88W10Domestic Debt Repayment in Foreign Exchange
89W11Foreign Debt Repayment in Domestic Currency
Table G. Outstanding Debt by Type of Debt Instrument
88ZITotal Debt (same as F.I)
88IIDomestic Debt (same as F.II)
88R1Long-term Bonds
88S2Short-term Bonds and Bills
88T3Long-term Loans n.e.c.
88U4Short-term Loans and Advances
88V5Other Liabilities
89IIIForeign Debt (same as R.III)
89R6Long-term Bonds
89S7Short-term Bonds and Bills
89T8Long-term Loans n.e.c.
89U9Short-term Loans and Advances n.e.c.
89V10Other Liabilities
Summary Table: Other Levels of Government
State, Region, or Province Governments
81 YA1.1Tax
81ZP2.1From Other Levels of Government
81ZX2.2From Abroad
82P3.1Transfers to Other Levels of Government
834Lending Minus Repayments
83P4.1To Other Levels of Government
805Deficit/Surplus (1+2)-(3+4)
Local Governments
81 YA1.1Tax
81 ZP2.1From Other Levels of Government
81 ZX2.2From Abroad
82P3.1Transfers to Other Levels of Government
834Lending Minus Repayments
83P4.1To Other Levels of Government
805Deficit/Surplus (1+2)-(3+4)
Source: International Monetary Fund, Government Finance Statistics Yearbook, Vol. 2 (Washington, 1978), pp. 8–13.Note: n.e.c. = not elsewhere classified.

International Monetary Fund, Government Finance Statistics Yearbook, Vol. 1 (Washington, 1977); hereinafter referred to as the GFS Yearbook. Issued annually.

International Monetary Fund, A Manual on Government Finance Statistics: Draft (Washington, June 1974).

Jonathan Levin, “New Tools for Measuring Government,” Finance andDevelopment, Vol. 12, No. 2 (June 1975), p. 15.

See Government Finance Statistics Yearbook, Vol. 2 (1978), p. 2.

In the United Nations’ A System of National Accounts (New York, 1968), social security funds are treated as a separate subsector of general government.

In the United Nations’ A System of National Accounts, government performance of monetary authority transactions and acceptance of deposits are included within government so long as they are not carried out by units that both incur liabilities and acquire financial assets in the market.

In contrast, the United Nations’ A System of National Accounts is on an accrual basis, so that transactions are recorded at the time claims or liabilities arise or when they are due without penalty.

In the United Nations’ A System of National Accounts, various expenditure categories are shown on a net basis; e.g., purchase of land or intangible assets are net of sales.

The United Nations’ A System of National Accounts also treats departmental enterprise activity on a net basis, but consolidates the operating deficits with surpluses.

For titles of lines in the GFS Yearbook, see the Appendix. The Summary Table of central government operations contains the principal aggregates. Its component tables, Tables A through G, show the details of revenue, grants, expenditure, lending minus repayments, financing, and debt.

For a more detailed discussion, see Jonathan Levin, “New Tools for Measuring Government,” pp. 16–18.

Up to early 1977, the East African Community also raised taxes and made expenditures within each of the three member countries; these operations and their financing were regarded as part of the general government sector.

For other central government units, the fiscal year is indicated in Table 1. For local governments, the fiscal year coincides with the calendar year.

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