Cambodia: Technical Assistance Report-Government Finance Statistics

International Monetary Fund. Statistics Dept.

doi:10.5089/9781513559889.002.A001

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Cambodia

Technical Assistance Report-Government Finance Statistics

Author: International Monetary Fund. Statistics Dept.

Publication Date:: 30 Oct 2020

eISBN:: 9781513559889

ISBN:: 9781513559889

Language:: English

Keywords:: government activity; GFS compilation bridge table; Japan-funded Government Finance Statistics; team in the General Department of Policy; GFS expert

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As part of Cambodia’s participation in the Japan-funded Government Finance Statistics (GFS) and Public Sector Debt Statistics (PSDS) project for selected Asian countries (JSA3),1 this mission conducted an in-country workshop (December 2–4, 2019) and provided follow-up technical assistance (TA) on GFS and PSDS (December 5–13, 2019).2 Both activities were aimed at strengthening compilation and dissemination of fiscal data in line the GFS Manual 2014 (GFSM 2014) and the PSDS: Guide (PSDSG) to support surveillance and decision making. At the request of the authorities, the TA mission participated in the inter-agency workshop on data consistency in macroeconomic statistics conducted by the Ministry of Economy and Finance (MEF) during December 5–6, 2019.

Abstract

Summary of Mission Outcomes and Priority Recommendations

1. As part of Cambodia’s participation in the Japan-funded Government Finance Statistics (GFS) and Public Sector Debt Statistics (PSDS) project for selected Asian countries (JSA3),¹ this mission conducted an in-country workshop (December 2–4, 2019) and provided follow-up technical assistance (TA) on GFS and PSDS (December 5–13, 2019).² Both activities were aimed at strengthening compilation and dissemination of fiscal data in line the GFS Manual 2014 (GFSM 2014) and the PSDS: Guide (PSDSG) to support surveillance and decision making. At the request of the authorities, the TA mission participated in the inter-agency workshop on data consistency in macroeconomic statistics conducted by the Ministry of Economy and Finance (MEF) during December 5–6, 2019.

2. The GFS-PSDS in-country workshop (attended by 41 participants) discussed in detail the GFSM 2014 and PSDSG frameworks as applied in Cambodia’s statistics. It provided the participants the opportunity to discuss practical issues of fiscal data compilation and use of GFS and PSDS in fiscal analysis, cross-country comparisons, and the International Monetary Fund (IMF) surveillance work, including monitoring economic developments and balance sheet analysis. Mr. Suhas Joshi, Regional Treasury Advisor in the IMF Capacity Development Office in Thailand (CDOT), made a presentation on the close correlation between GFS and Public Financial Management (PFM) reforms and the importance of high-quality fiscal data for an overall PFM performance.

3. At the inter-agency workshop organized by the MEF the mission provided practical guidance and recommendations on reconciling data for general government (GG) with other macroeconomic datasets. In addition, the mission reviewed the progress with compiling and disseminating more accurate GFS and PSDS; advised on improvements to the annual GFS time series; discussed the expansion of institutional coverage to include extrabudgetary units; and drew-up a work program for further GFS and PSDS development, including the compilation and dissemination of GFS balance sheets for GG.

4. The MEF is making steady progress in developing reliable, consistent, and internationally comparable fiscal statistics to support surveillance work. Its GFS team in the General Department of Policy (GDP) has compiled the 2015–2018 annual time series for consolidated budgetary central government (BCG) and local governments (LGs), and reconciled these data with fiscal data published in the Article IV Staff Report. The GDP staff compiles GFS financial balance sheets, on a pilot basis, based on the accounting data sources. The bridge table between GFS and national Table of Government Financial Operations (TOFE) (Dec 5–6, 2019) held in Kep Province; and the following week through December 13, she was joined by Ms. Mei Ling Tjung, GFS expert, for the TA mission.

5. Enhanced coordination of GFS and PSDS developments and PFM reforms is critical to ensure sustained progress. The MEF Consolidated Action Plan in Stage 3 (CAP3–2020) under government’s PFM Reform Program contains two GFS-related Key Performance Indicators: compiling GFS tables (Activity 21.3) and determining the budget deficit in accordance with GFS system (Activity 33.3). The mission suggested coordinating the Action Plan with further GFS/PSDS developments within the activities of CAP3–2020 and beyond (CAP4). During the discussion of the ongoing revisions to the 2008 Public Finance System Law, the mission advised on inclusion of specific provisions relating to GFS as part of the overall Fiscal Reporting (Pillar I of the IMF Fiscal Transparency Code).

6. Closer cooperation between statistics-producing agencies is essential to improve the quality of macroeconomic statistics. At inter-agency workshop on data consistency in macroeconomic statistics, representatives from the MEF, the National Institute of Statistics (NIS), the Council for the Development of Cambodia (CDC), and the National Bank of Cambodia (NBC) agreed on the need on enhanced cooperation. As possible first steps, the mission recommended that agencies coordinate to agree on a common institutional table listing all general government and public sector units; reconcile GFS with data on general government with other macroeconomic datasets; and formalize the inter-agency cooperation by establishing a working group with a formal Memorandum of Understanding (MOU).

7. Quarterly PSDS for the Joint World Bank (WB)-IMF database can be produced on a semi-annual basis. Official PSDS and metadata are disseminated by the MEF on a semi-annual basis in the Cambodia Public Debt Statistical Bulletin. The MEF’s GDP submitted PSDS for 2018Q1–2018Q4 and metadata questionnaires to the Joint WB-IMF Quarterly PSDS database on April 1, 2019. The data relates to gross BCG debt position covering loans and debt securities. The mission suggested that the GDP follow up on debt data publication with the WB and establish regular reporting procedures for quarterly PSDS dissemination.

8. The mission worked with officials from the GDP and the General Department of Budget (GDB) of the MEF and liaised with the IMF’s Resident Representative for Cambodia. The mission thanks the authorities for their cooperation and support. The following priority recommendations carry particular weight to improving GFS and PSDS in Cambodia:

^{Table 1.}

Priority Recommendations

^{Table 1.}

Priority Recommendations

Target Date	Priority Recommendation	Responsible Institutions
May 2020	Coordinate and agree on the institutional coverage of the general government and public sector with NIS and NBC.	GDP MEF, NBC, NIS
October 2020	Bridge the 2019 budget execution reports of public administrative establishments (PAEs) with GFSM 2014-compliant formats, compile consolidated GFS for general government including a GFS balance sheet (Table 6) and report them to STA and IMF Asia and Pacific Department (APD).	GDP MEF
October 2020	Publish 2015–2018 consolidated GFS balance sheets (Table 6) for BCG and LGs as part of GFS on the MEF website.	GDP MEF

^{Table 1.}

Priority Recommendations

Target Date	Priority Recommendation	Responsible Institutions
May 2020	Coordinate and agree on the institutional coverage of the general government and public sector with NIS and NBC.	GDP MEF, NBC, NIS
October 2020	Bridge the 2019 budget execution reports of public administrative establishments (PAEs) with GFSM 2014-compliant formats, compile consolidated GFS for general government including a GFS balance sheet (Table 6) and report them to STA and IMF Asia and Pacific Department (APD).	GDP MEF
October 2020	Publish 2015–2018 consolidated GFS balance sheets (Table 6) for BCG and LGs as part of GFS on the MEF website.	GDP MEF

Detailed Technical Assessment and Recommendations

A. Expanding Institutional and Data Coverage

9. The mission found that coverage of fiscal statistics remains limited and excludes extrabudgetary units and balance sheets data. Monthly and annual GFS include Statement of Government Operations and detailed tables on Revenue, Expense, and Transactions in Assets and Liabilities for BCG. GFS consolidating all three levels of LGs are compiled on an annual and a semester basis due to the complexity of consolidation between three levels of LGs. Annual GFS for general government are published on an unconsolidated basis due to the absence of reliable source data on extrabudgetary units represented by PAEs. The GDP staff compile financial balance sheets on a pilot basis but does not report it to STA and APD yet because of their work to improve the data quality is in progress.

10. The GFS team receives two types of source data for extrabudgetary units: attachment to the annual budget and the financial reports of PAEs. The attachment to the annual budget contains the main aggregates on PAEs’ transactions. Another type of reporting established by the PAE Reform Committee includes (i) execution reports on revenue and expenditure in line with the Chart of Accounts (COA), (ii) annual trial balance, (iii) trial balance adjusted after actual results calculations, (iv) end of period trial balance, (v) balance of flash estimates of advance information, and (vi) revenue estimates. By the end of 2019, 15 institutions reported expenditure reports to General Department of National Treasury (GDNT). Some of PAEs also presented trial balances. However, there are several consistency issues in these reports. Some PAEs postponed the implementation of the MEF’s accounting and reporting standards for the next year or beyond.

11. The mission reviewed the main aggregates on PAEs’ transactions and noted that the overall balance for 29 PAEs amounted to 0.66 percent of gross domestic product in 2018. To expand the institutional coverage of GFS by including PAEs the mission proposed, as a first step, using the source data available in the attachment to the annual budget (see Appendix VI). The mission also recommended that the MEF progressively improve the reliability and consistency of source data for PAEs.

Recommended actions:

Bridge the 2018 budget execution reports of PAEs with the GFSM 2014-based formats and compile consolidated GFS for general government.
Bridge the 2018 financial reports of 11 PAEs with GFSM 2014-based formats and compare the results with GFS based on budget execution data to improve the accuracy of the GFS compilation bridge tables.

B. Enhancing Source Data for GFS and PSDS

12. Based on previous missions’ recommendations, the GDP staff started using final trial balances for BCG and all three levels of LG as source data in compiling annual GFS. However, the trial balance for BCG is not available on a monthly basis; Therefore, the GDP staff compile high-frequency GFS for BCG based on Revenue and Expenditure Reports as well as some additional data, including the information about externally financed operations and on-lending. At the same time, the GFS team also continue compiling GFS for BCG based on the trial balance to better understand the differences and discrepancies between datasets. The main discrepancies relate to debt, on-lending loans, and acquisitions of nonfinancial assets, mainly arising from different exchange rate valuations applied by the different source data providers (GDNT and General Department of International Cooperation and Debt Management (GDICDM)).

13. Another issue for monthly GFS covering BCG is a difference between reports of data collection questionnaires/queries for revenue and expenditure and the posted monthly trial balance. The trial balance’s posted date means the date of including all approved monthly data in the general ledger (monthly trial balance). The questionnaire/query reports are based on the data collected before approval. All transactions are recorded in the Financial Management Information System (FMIS), but revenue and expenditure reports are based on a query and not the posted trial balance. Therefore, some data are not included in the revenue and expenditure reports based on query collections. As a result, there are discrepancies between the query revenue and expenditure data reports distributed and the trial balance. A possible solution could be to agree on a single cut-off date for the monthly data reporting after data posting to the general ledger.

Recommended action:

Perform internal reconciliation on an annual basis to ensure data consistency between query-based and posted data; and adjust for valuation differences among source data on loans and on-lending loans, acquisition of nonfinancial assets financed form abroad, and debt liabilities.

14. The mission addressed additional issues encountered in the annual GFS time series and provided recommendation to improve classification and data consistency. It is important for the GDP staff to map the new COA codes with GFS classifications based on the economic substance rather than national definitions. Once established, the mapping should be applied in a consistent way. The reclassification of accounts in the national COA, for example from Tax revenue to Non-tax revenue, would affect the mapping to GFS only in case the economic substance of the account changes. Any changes in coverage, source data, time of recording, valuation, and classification should be explained in the metadata. On a best effort basis, the changes should be extended back to the earliest data available to maintain data consistency (see Appendix VII for detailed recommendations).

C. Reconciling GFS with Other Macroeconomic Datasets

15. Government activity is reflected not only in GFS but also in other macroeconomic datasets. For instance, national accounts contain data on government gross saving, government final consumption expenditure, and government gross capital formation. Monetary and financial statistics (MFS) include net claims on government, government deposits, and debt securities. Broadly, the same principles and concepts are applied in GFS, national accounts, MFSs and external sector statistics (ESS). Detailed explanation on the relationships between GFS, System of National Accounts (SNA), balance of payments (BOP) and international investment position (IIP), and MFS is explained in GFSM 2014, Appendix 7.

16. Concerted efforts are needed to regularly review inconsistencies and reconcile GFS with statistics compiled by the NBC and the NIS. Discrepancies between macroeconomic datasets usually occur because of differences in coverage and sectorization, classification, valuation, and time of recording. As possible first steps, the coverage of general government and public sector units should be coordinated between all statistics producing agencies. In addition, the mission proposed basic reconciliation tables that could be populated with general government data provided through the national accounts, BOP, IIP, and MFS to support further discussion on data consistency (see Appendix V).

Recommended actions:

Coordinate and agree on the institutional coverage of the general government and public sector with NIS and NBC.
Reconcile GFS on general government financial balance sheets with the NBC-compiled statistics (MFS, BOP/IIP) on an annual basis by comparing data, identifying differences, reconciling and explaining the reasons for differences in a note of reconciliation.
Reconcile GFS on general government with the NIS (totals for Saving, Net investment in NFAs, and Net Lending/Borrowing), annually by comparing sources, identifying differences, reconciling and explaining the reasons in the note of reconciliation.

17. Institutional arrangements regarding responsibilities, methodology, data sharing and reconciliation by statistics producing agencies should be formalized. A MOU represents an important instrument that that strengthens the need to integrate and coordinate efforts. It is useful if the MOU makes a distinction between the Steering Committee (senior member Working Group) responsible for strategic decision making, and operations Working Groups (expert level Working Group) responsible for executing the ongoing compilation and reconciliation. Topics to consider in drafting a MOU are listed in Appendix IX to this report.

Recommended action:

Form a Working Group for reconciling GFS with data on general government in other datasets of macroeconomic statistics (NBC and NIS).

D. Action Plan

Target Date	Recommendation	Expected results	Responsible Institutions
Outcome: Data are compiled and disseminated using the coverage and scope of the latest manual/guide: *GFSM2014, and PSDSG*.
May 2020	Coordinate and agree on the institutional coverage of the general government and public sector with NIS and NBC	An agreed and updated (when necessary) list of institutional units of general government and public sector that is used in the statistics compilation in MEF, NIS, NBC	GDP MEF, NBC, NIS
May 2020	Bridge the 2018 budget execution reports of PAEs with the GFSM 2014-based formats and compile consolidated GFS for general government	The 2018 budget execution reports are bridged with the GFSM 2014-based formats. Consolidated 2018 GFS are compiled including PAEs	GDP MEF
June 2020	Bridge the 2018 financial reports of 11 PAEs with GFSM 2014-based formats and compare the results with GFS based on budget execution data	2018 GFS based on financial reports are compared with 2018 GFS based on budget execution for 11 PAEs, discrepancies identified; follow up steps proposed to minimize discrepancies	GDP MEF
July 2020	Reconcile GFS on general government financial balance sheet with the NBC statistics (MFS, BOP/IIP) on an annual basis by comparing data, identifying differences, reconciling and explaining the reasons for differences in a note of reconciliation	Annual reconciliation with NBC is conducted, differences identified and explained in a note of reconciliation.	GDP MEF, NBC
July 2020	Reconcile GFS on general government with the NIS (Totals for Saving, Net investment in NFAs, and Net Lending/Borrowing) annually by comparing, identifying differences, reconciling and explaining the reasons in the note of reconciliation	Annual reconciliation with NIS is conducted and differences identified and explained in a note of reconciliation.	GDP MEF, NIS
October 2020	Bridge the 2019 budget execution reports of PAEs with GFSM 2014-based formats, compile consolidated GFS for general government including GFS balance sheet (Table 6) and report them to STA and APD	The 2019 budget execution repots are bridged with GFSM 2014-based GFS. Consolidated 2019 GFS are compiled including PAEs and Table 6, reported to STA and APD	GDP MEF
October 2020	Publish 2015–2018 consolidated balance sheet (Table 6) for BCG and LGs as part of GFS on the MEF website	2015–2018 consolidated balance sheet (Table 6) for BCG and LGs are published as part of GFS on the MEF website	GDP, MEF
November 2020	Perform internal reconciliation on an annual basis to ensure data consistency between query-based and posted data, different source data on loans and on-lending loans, acquisition of nonfinancial assets financed form abroad, and debt liabilities.	Annual internal reconciliation on query-based and posted data, different source data on loans and on-lending loans, acquisition of nonfinancial assets financed from abroad, and debt liabilities conducted and documented in a note of reconciliation	GDNT, GDICDM, GDP MEF
December 2020	Form a working group on reconciling GFS with data on general government in other datasets of macroeconomic statistics (NBC and NIS)	An official working group on reconciling GFS with data on general government in other datasets of macroeconomic statistics established by inter-agency decree or MoU	GDP MEF
Outcome: Data are compiled and disseminated using the classification of the latest manual/guide: *GFSM2014, and PSDSG*.
August 2020	Review source data for GFS Classification of the Functions of Government (COFOG) (Table 7) for BCG expenditure (expense and net acquisition of nonfinancial assets) to conclude on consistency with GFSM 2014 recommendations	Consistency with GFS requirements checked, differences identified, proposals of further alignment with GFSM 2014 recommendations	GDP, GDB, MEF
October 2020	Compile annual GFS COFOG (Table 7) for BCG expenditure (expense and net acquisition of nonfinancial assets) in line with GFSM 2014 recommendations	Annual GFS COFOG (Table 7) for BCG expenditure (expense and net acquisition of nonfinancial assets) consistent with GFSM 2014 recommendations	GDP, MEF
November 2020	Develop proposal to GDB to determine budget deficit in accordance with GFSM 2014	Proposals on determining budget deficit in accordance with GFSM 2014 are developed, formalized and sent to GDB	GDB, GDNT, GDP MEF
November 2020	Generate and review GFS Table 2 (Expense) for BCG from FMIS, make necessary corrections of mapping COA to GFS in FMIS	GFS Table 2 for BCG generated from FMIS reviewed, compared with Table 2 from the GFS Classification Assistant, necessary corrections of mapping COA to GFS in FMIS are made	GDP and FMIS Team MEF
November 2020	Generate and review GFS Table 2 (Expense) for LGs from FMIS, make necessary corrections of mapping COA to GFS in FMIS	GFS Table 2 for LGs generated from FMIS reviewed, compared with Table 2 from the GFS Classification Assistant, necessary corrections of mapping COA to GFS in FMIS are made	GDP and FMIS Team MEF
December 2020	Prepare the first draft of documentation on business-process for GFS compilation and dissemination	A first draft of documentation on business-process for GFS compilation and dissemination is prepared	GDP MEF
August 2021	Generate and review GFS Table 3 (Transactions in Assets and Liabilities) for BCG from FMIS, make necessary corrections of mapping COA to GFS in FMIS	GFS Table 3 for BCG generated from FMIS reviewed, compared with Table 3 from the GFS Classification Assistant, necessary corrections of mapping COA to GFS in FMIS are made	GDP, GDICDM, GDNT MEF
August 2021	Generate and review GFS Table 3 (Transactions in Assets and Liabilities) for LGs from FMIS, make necessary corrections of mapping COA to GFS in FMIS	GFS Table 3 for LGs generated from FMIS reviewed, compared with Table 3 from the GFS Classification Assistant, necessary corrections of mapping COA to GFS in FMIS are made	GDP and GDNT, MEF
Outcome: Higher frequency data has been compiled and disseminated internally and/or to the public
May 2020	Establish regular reporting to the Joint WB–IMF quarterly PSDS database to publish PSDS for Cambodia	Quarterly PSDS for Cambodia are published in the Joint WB– IMF database	GDP and GDICDM, MEF
May 2020	Update the derivation table to present the derivation of aggregates from TOFE to GFS and post it on the MEF website	Derivation table from TOFE to GFS updated and posted on the MEF website	GDP MEF
May 2020	Add explanations on the differences between TOFE and GFS and advantages of using GFS in fiscal analysis on the MEF website	Explanation on the differences between TOFE and GFS and advantages of using GFS in fiscal analysis are published on the MEF website	GDP MEF
September 2021	Compile and publish consolidated GFS for BCG and LGs on a quarterly basis	Consolidated GFS for BCG and LGs are compiled and published on a quarterly basis on the MEF website starting from 2021 Q1 and Q2 and then on a quarterly basis.	GDP MEF

Target Date	Recommendation	Expected results	Responsible Institutions
Outcome: Data are compiled and disseminated using the coverage and scope of the latest manual/guide: *GFSM2014, and PSDSG*.
May 2020	Coordinate and agree on the institutional coverage of the general government and public sector with NIS and NBC	An agreed and updated (when necessary) list of institutional units of general government and public sector that is used in the statistics compilation in MEF, NIS, NBC	GDP MEF, NBC, NIS
May 2020	Bridge the 2018 budget execution reports of PAEs with the GFSM 2014-based formats and compile consolidated GFS for general government	The 2018 budget execution reports are bridged with the GFSM 2014-based formats. Consolidated 2018 GFS are compiled including PAEs	GDP MEF
June 2020	Bridge the 2018 financial reports of 11 PAEs with GFSM 2014-based formats and compare the results with GFS based on budget execution data	2018 GFS based on financial reports are compared with 2018 GFS based on budget execution for 11 PAEs, discrepancies identified; follow up steps proposed to minimize discrepancies	GDP MEF
July 2020	Reconcile GFS on general government financial balance sheet with the NBC statistics (MFS, BOP/IIP) on an annual basis by comparing data, identifying differences, reconciling and explaining the reasons for differences in a note of reconciliation	Annual reconciliation with NBC is conducted, differences identified and explained in a note of reconciliation.	GDP MEF, NBC
July 2020	Reconcile GFS on general government with the NIS (Totals for Saving, Net investment in NFAs, and Net Lending/Borrowing) annually by comparing, identifying differences, reconciling and explaining the reasons in the note of reconciliation	Annual reconciliation with NIS is conducted and differences identified and explained in a note of reconciliation.	GDP MEF, NIS
October 2020	Bridge the 2019 budget execution reports of PAEs with GFSM 2014-based formats, compile consolidated GFS for general government including GFS balance sheet (Table 6) and report them to STA and APD	The 2019 budget execution repots are bridged with GFSM 2014-based GFS. Consolidated 2019 GFS are compiled including PAEs and Table 6, reported to STA and APD	GDP MEF
October 2020	Publish 2015–2018 consolidated balance sheet (Table 6) for BCG and LGs as part of GFS on the MEF website	2015–2018 consolidated balance sheet (Table 6) for BCG and LGs are published as part of GFS on the MEF website	GDP, MEF
November 2020	Perform internal reconciliation on an annual basis to ensure data consistency between query-based and posted data, different source data on loans and on-lending loans, acquisition of nonfinancial assets financed form abroad, and debt liabilities.	Annual internal reconciliation on query-based and posted data, different source data on loans and on-lending loans, acquisition of nonfinancial assets financed from abroad, and debt liabilities conducted and documented in a note of reconciliation	GDNT, GDICDM, GDP MEF
December 2020	Form a working group on reconciling GFS with data on general government in other datasets of macroeconomic statistics (NBC and NIS)	An official working group on reconciling GFS with data on general government in other datasets of macroeconomic statistics established by inter-agency decree or MoU	GDP MEF
Outcome: Data are compiled and disseminated using the classification of the latest manual/guide: *GFSM2014, and PSDSG*.
August 2020	Review source data for GFS Classification of the Functions of Government (COFOG) (Table 7) for BCG expenditure (expense and net acquisition of nonfinancial assets) to conclude on consistency with GFSM 2014 recommendations	Consistency with GFS requirements checked, differences identified, proposals of further alignment with GFSM 2014 recommendations	GDP, GDB, MEF
October 2020	Compile annual GFS COFOG (Table 7) for BCG expenditure (expense and net acquisition of nonfinancial assets) in line with GFSM 2014 recommendations	Annual GFS COFOG (Table 7) for BCG expenditure (expense and net acquisition of nonfinancial assets) consistent with GFSM 2014 recommendations	GDP, MEF
November 2020	Develop proposal to GDB to determine budget deficit in accordance with GFSM 2014	Proposals on determining budget deficit in accordance with GFSM 2014 are developed, formalized and sent to GDB	GDB, GDNT, GDP MEF
November 2020	Generate and review GFS Table 2 (Expense) for BCG from FMIS, make necessary corrections of mapping COA to GFS in FMIS	GFS Table 2 for BCG generated from FMIS reviewed, compared with Table 2 from the GFS Classification Assistant, necessary corrections of mapping COA to GFS in FMIS are made	GDP and FMIS Team MEF
November 2020	Generate and review GFS Table 2 (Expense) for LGs from FMIS, make necessary corrections of mapping COA to GFS in FMIS	GFS Table 2 for LGs generated from FMIS reviewed, compared with Table 2 from the GFS Classification Assistant, necessary corrections of mapping COA to GFS in FMIS are made	GDP and FMIS Team MEF
December 2020	Prepare the first draft of documentation on business-process for GFS compilation and dissemination	A first draft of documentation on business-process for GFS compilation and dissemination is prepared	GDP MEF
August 2021	Generate and review GFS Table 3 (Transactions in Assets and Liabilities) for BCG from FMIS, make necessary corrections of mapping COA to GFS in FMIS	GFS Table 3 for BCG generated from FMIS reviewed, compared with Table 3 from the GFS Classification Assistant, necessary corrections of mapping COA to GFS in FMIS are made	GDP, GDICDM, GDNT MEF
August 2021	Generate and review GFS Table 3 (Transactions in Assets and Liabilities) for LGs from FMIS, make necessary corrections of mapping COA to GFS in FMIS	GFS Table 3 for LGs generated from FMIS reviewed, compared with Table 3 from the GFS Classification Assistant, necessary corrections of mapping COA to GFS in FMIS are made	GDP and GDNT, MEF
Outcome: Higher frequency data has been compiled and disseminated internally and/or to the public
May 2020	Establish regular reporting to the Joint WB–IMF quarterly PSDS database to publish PSDS for Cambodia	Quarterly PSDS for Cambodia are published in the Joint WB– IMF database	GDP and GDICDM, MEF
May 2020	Update the derivation table to present the derivation of aggregates from TOFE to GFS and post it on the MEF website	Derivation table from TOFE to GFS updated and posted on the MEF website	GDP MEF
May 2020	Add explanations on the differences between TOFE and GFS and advantages of using GFS in fiscal analysis on the MEF website	Explanation on the differences between TOFE and GFS and advantages of using GFS in fiscal analysis are published on the MEF website	GDP MEF
September 2021	Compile and publish consolidated GFS for BCG and LGs on a quarterly basis	Consolidated GFS for BCG and LGs are compiled and published on a quarterly basis on the MEF website starting from 2021 Q1 and Q2 and then on a quarterly basis.	GDP MEF

Appendix I. Officials Met During the Mission

Name	Institution
Kim Phalla	Deputy Director General, GDP, MEF
Sok Khorn	Director, Statistics and Economic Analysis Department, GDP
Yorn Sambath	Head of Public Finance Statistics Division, GDP, MEF
Khut Chankanika	Young Economist Professional, GDP, MEF
Prak Tha Achharawadei	Young Economist Professional, GDP, MEF
Chorn Sophannak	Young Economist Professional, GDP, MEF
Dun Bonita	Deputy Chief, GDICDM, MEF
Cheang Sovuthy	Deputy Chief, GDICDM, MEF
Ung Luyna	Deputy Director General, GDB, MEF

Name	Institution
Kim Phalla	Deputy Director General, GDP, MEF
Sok Khorn	Director, Statistics and Economic Analysis Department, GDP
Yorn Sambath	Head of Public Finance Statistics Division, GDP, MEF
Khut Chankanika	Young Economist Professional, GDP, MEF
Prak Tha Achharawadei	Young Economist Professional, GDP, MEF
Chorn Sophannak	Young Economist Professional, GDP, MEF
Dun Bonita	Deputy Chief, GDICDM, MEF
Cheang Sovuthy	Deputy Chief, GDICDM, MEF
Ung Luyna	Deputy Director General, GDB, MEF

Appendix II. Workshop in Kep: Program and Participants

Appendix III. Implementation of the Previous Mission’s Recommendations

Target Date	Recommendation	Responsible Institutions	Implementation Status
February 2019	Report quarterly PSDS and metadata questionnaires to the Joint WB–IMF database	GDP, GDNT and GDICDM, MEF	Partially implemented. GDP submitted 2018Q1–2018Q4 PSDS covering debt securities and loans for BCG and metadata questionnaires to the joint WB-IMF Quarterly PSDS database on April 1, 2019. However, this data has not been published by the WB and no other quarterly PSDS has been reported. According to the information from GDP, there are no response or feedback from the WB. The mission suggested the GDP to follow up with the WB and establish regular reporting procedures for quarterly PSDS. On October 25, 2019 the GDICDM presented to the GDP 2019Q1 and 2019Q2 PSDS covering debt securities and loans of the BCG. GDP is planning to expand the debt instruments by adding other accounts payable on a quarterly basis and report this data to the WB.
March 2019	Harmonize annual consolidated GFS for budgetary central and LGs and the data used in the Article IV Staff Report	GDP, GDNT and GDICDM, MEF	Implemented. GDP compiled the time series of annual data (2015–2018) and budget law data (2019–2020) consolidating BCG and LGs and reconciled them with fiscal data published in the Article IV Staff Report. Following additional requests from APD, 2020–2022 projections were compiled in the GFS format and reported through the IMF’s Res Rep office.
April 2019	Discuss derivation of the GFSM 2014-based fiscal data from the budget table	GDP and GDB, MEF	Partially Implemented. The comparative table between Budget Framework (Budget ^{Table 1}) and GFS Framework based on 2019 Budget Law data was discussed during a high-level meeting between GDP and GDB in June 2019. In the meeting, each party explained its own data framework and agreed to conduct another meeting at the level of technical staff to go into detail. The technical meeting has not been scheduled yet.
May 2019	Complement GFS data published on the MEF website with the TOFE-GFS derivation table and methodological comments	GDP, MEF	Implemented. GDP publishes Statement of Government Operations and detailed tables on Revenue, Expense, Transactions in Assets and Liabilities covering BCG. Annual consolidated Statement of Government Operations covering GFS for all three levels of LGs is presented in a separate table. The GFS tables have been supplemented by adding a TOFE-to-GFS Derivation Table for BCG and a Technical Note explaining the GFSM 2014 framework.
June 2019	Compile 2017 annual consolidated GFS, including GFS balance sheet (Table 6), based on 2017 finalized trial balance data and report to STA and APD	GDP, MEF	Partially implemented. The GFS balance sheet data for 2017 onwards are been compiled; however, the GDP staff do not report the GFS balance sheet data to STA and APD as these data need further improvement. There are still discrepancies in the GFS data sets for BCG. One data set is based on the trail balance and the other one is based on the revenue, expenditure, and additional data on externally financed transactions. In addition, there are discrepancies between data published in Cambodia Public Debt Statistical Bulletin and the trial balance-based GFS Table 6.
July 2019	Compile a derivation table explaining all adjustments to the trial balance made to derive GFS	GDP, MEF	Partially Implemented. The GFS derivation table is operational, but the mission suggests improvements so that the derivation table should start with aggregates from the trial balance to derive the GFS aggregates. Such presentation would improve the stakeholders’ understanding. The mission recommended adding the table with methodological explanations.
September 2019	Compile and publish consolidated GFS for BCG and LGs on a semi-annual basis	GDP, MEF	Partly Implemented GFS for BCG are available on a monthly basis. GFS for LG are compiled on an annual and a semester basis due to the complexity of consolidation between 3 levels of local government. GDP reports to APD annual time series from 2015 covering consolidated BCG and LGs. In addition, GFS for consolidated BCG and LGs are prepared following special requests from APD. GDP is planning to publish consolidated Statement of Government Operations for BCG and LG on a quarterly basis in the late 2021.
October 2019	Coordinate the institutional coverage of the general government and public sector with NIS and NBC	GDP, MEF, NIS, NBC	Not implemented. The fist inter-agency discussion on institutional coverage in macroeconomic statistics happened during the workshop in Kep on December 5–6, 2019. GDP has shared the list of PAE and SOEs with the NIS and the NBC.
November 2019	Generate and review GFS ^{Table 1} for LGs from FMIS, make necessary corrections to mapping COA to GFS	GDP and GDNT, MEF	Partially Implemented. GFS ^{Table 1} for 3 separate levels of LGs has been generated from FMIS and reviewed. The main issues relate to consolidation of 3 levels. FMIS generates consolidation for a specific level of LG, and the GFS team then has to consolidate 3 levels manually. The GDP staff is planning to upload GFS formats for Table 2 in 2020 and review the result. There is a need for a formal working group on GFS/FMIS within the MEF to ensure this work is done. Uploading of Table 3 and the Statement of Government Operations is planned for 2021.

Target Date	Recommendation	Responsible Institutions	Implementation Status
February 2019	Report quarterly PSDS and metadata questionnaires to the Joint WB–IMF database	GDP, GDNT and GDICDM, MEF	Partially implemented. GDP submitted 2018Q1–2018Q4 PSDS covering debt securities and loans for BCG and metadata questionnaires to the joint WB-IMF Quarterly PSDS database on April 1, 2019. However, this data has not been published by the WB and no other quarterly PSDS has been reported. According to the information from GDP, there are no response or feedback from the WB. The mission suggested the GDP to follow up with the WB and establish regular reporting procedures for quarterly PSDS. On October 25, 2019 the GDICDM presented to the GDP 2019Q1 and 2019Q2 PSDS covering debt securities and loans of the BCG. GDP is planning to expand the debt instruments by adding other accounts payable on a quarterly basis and report this data to the WB.
March 2019	Harmonize annual consolidated GFS for budgetary central and LGs and the data used in the Article IV Staff Report	GDP, GDNT and GDICDM, MEF	Implemented. GDP compiled the time series of annual data (2015–2018) and budget law data (2019–2020) consolidating BCG and LGs and reconciled them with fiscal data published in the Article IV Staff Report. Following additional requests from APD, 2020–2022 projections were compiled in the GFS format and reported through the IMF’s Res Rep office.
April 2019	Discuss derivation of the GFSM 2014-based fiscal data from the budget table	GDP and GDB, MEF	Partially Implemented. The comparative table between Budget Framework (Budget ^{Table 1}) and GFS Framework based on 2019 Budget Law data was discussed during a high-level meeting between GDP and GDB in June 2019. In the meeting, each party explained its own data framework and agreed to conduct another meeting at the level of technical staff to go into detail. The technical meeting has not been scheduled yet.
May 2019	Complement GFS data published on the MEF website with the TOFE-GFS derivation table and methodological comments	GDP, MEF	Implemented. GDP publishes Statement of Government Operations and detailed tables on Revenue, Expense, Transactions in Assets and Liabilities covering BCG. Annual consolidated Statement of Government Operations covering GFS for all three levels of LGs is presented in a separate table. The GFS tables have been supplemented by adding a TOFE-to-GFS Derivation Table for BCG and a Technical Note explaining the GFSM 2014 framework.
June 2019	Compile 2017 annual consolidated GFS, including GFS balance sheet (Table 6), based on 2017 finalized trial balance data and report to STA and APD	GDP, MEF	Partially implemented. The GFS balance sheet data for 2017 onwards are been compiled; however, the GDP staff do not report the GFS balance sheet data to STA and APD as these data need further improvement. There are still discrepancies in the GFS data sets for BCG. One data set is based on the trail balance and the other one is based on the revenue, expenditure, and additional data on externally financed transactions. In addition, there are discrepancies between data published in Cambodia Public Debt Statistical Bulletin and the trial balance-based GFS Table 6.
July 2019	Compile a derivation table explaining all adjustments to the trial balance made to derive GFS	GDP, MEF	Partially Implemented. The GFS derivation table is operational, but the mission suggests improvements so that the derivation table should start with aggregates from the trial balance to derive the GFS aggregates. Such presentation would improve the stakeholders’ understanding. The mission recommended adding the table with methodological explanations.
September 2019	Compile and publish consolidated GFS for BCG and LGs on a semi-annual basis	GDP, MEF	Partly Implemented GFS for BCG are available on a monthly basis. GFS for LG are compiled on an annual and a semester basis due to the complexity of consolidation between 3 levels of local government. GDP reports to APD annual time series from 2015 covering consolidated BCG and LGs. In addition, GFS for consolidated BCG and LGs are prepared following special requests from APD. GDP is planning to publish consolidated Statement of Government Operations for BCG and LG on a quarterly basis in the late 2021.
October 2019	Coordinate the institutional coverage of the general government and public sector with NIS and NBC	GDP, MEF, NIS, NBC	Not implemented. The fist inter-agency discussion on institutional coverage in macroeconomic statistics happened during the workshop in Kep on December 5–6, 2019. GDP has shared the list of PAE and SOEs with the NIS and the NBC.
November 2019	Generate and review GFS ^{Table 1} for LGs from FMIS, make necessary corrections to mapping COA to GFS	GDP and GDNT, MEF	Partially Implemented. GFS ^{Table 1} for 3 separate levels of LGs has been generated from FMIS and reviewed. The main issues relate to consolidation of 3 levels. FMIS generates consolidation for a specific level of LG, and the GFS team then has to consolidate 3 levels manually. The GDP staff is planning to upload GFS formats for Table 2 in 2020 and review the result. There is a need for a formal working group on GFS/FMIS within the MEF to ensure this work is done. Uploading of Table 3 and the Statement of Government Operations is planned for 2021.

Appendix IV. Quarterly PSDS for 2018Q3–2019Q2

Appendix V. Advantages of Using GFSM 2014-based Presentation

The GFSM 2014-based presentation published on the MEF site³ includes Statement of Government Operations and detailed tables on Revenue, Expense, Transactions in Assets and Liabilities covering BCG. Annual consolidated Statement of Government Operations covering GFS for all three levels of LGs is presented in a separate table. A Technical Note presents an overview of the GFSM 2014 analytical framework. The Derivation Table from TOFE to GFS for BCG provides a direct link between two datasets by reclassifying TOFE Revenue, Expenditure, and Financing transactions to derive the main aggregates and balancing items of the GFSM 2014-based presentation.

Statement of Government Operations in the GFSM 2014-based presentation

* Acquisition less disposal of non-financial assets

Statement of Government Operations in the GFSM 2014-based presentation

				Billion RKH
Aggregates/Balancing Items				FY 2019	FY 2020	Changes from FY 2019
				Amount %	Amount %	Amount %
1 .Revenue
	Taxes
	Social contributions
	Grants
	Other revenue
2. Expenditure
	Compensation of employees
	Use of goods and services
	Interest
	Grants
	Social benefits
	Other current expense
	Investment in nonfinancial assets *
3. Net lending (+) / Net borrowing (-) (1–2)
4. Net Financing operations (4.1–4.2 = 3)
		4.1. Net acquisition of financial as sets
			Domestic debtors
			Foreign debtors
		4.2. Net incurrence of liabilities
			Domestic debtors
			Foreign debtors

* Acquisition less disposal of non-financial assets

Statement of Government Operations in the GFSM 2014-based presentation

				Billion RKH
Aggregates/Balancing Items				FY 2019	FY 2020	Changes from FY 2019
				Amount %	Amount %	Amount %
1 .Revenue
	Taxes
	Social contributions
	Grants
	Other revenue
2. Expenditure
	Compensation of employees
	Use of goods and services
	Interest
	Grants
	Social benefits
	Other current expense
	Investment in nonfinancial assets *
3. Net lending (+) / Net borrowing (-) (1–2)
4. Net Financing operations (4.1–4.2 = 3)
		4.1. Net acquisition of financial as sets
			Domestic debtors
			Foreign debtors
		4.2. Net incurrence of liabilities
			Domestic debtors
			Foreign debtors

* Acquisition less disposal of non-financial assets

The main advantages of using the GFSM 2014-based presentation in fiscal analysis and policy making are described below:

1. A GFSM 2014-based presentation improves the identification of revenues, expense, net investments in nonfinancial assets, and financing transactions allowing a more systematic evaluation of the impact of current policies on a long-term fiscal sustainability.

Current fiscal policy is not sustainable if it significantly reduces government Net Worth. Therefore, the impact on government Net Worth becomes one of the main classification criteria for transactions. Thus, GFS revenue and expense represent transactions that increase or decrease Net Worth, respectively. Net acquisition (acquisitions minus disposals) of nonfinancial and financial assets as well as net incurrence (incurrence minus repayment) of liabilities refer to transactions that change the composition of assets and liabilities but not Net Worth.

Compilation of a GFSM 2014-based presentation of government operations is an important step in developing a fully integrated framework where all changes in balance sheet stock positions are explained by corresponding flows—transactions and other economic flow (price changes, debt write-offs, catastrophic losses, etc.) Such integration permits the effects of policies and specific economic events to be described and analyzed in terms of their impact on financial operations and financial position of government.

2. A GFSM 2014-based presentation is closely linked to other macroeconomic statistical frameworks (national accounts, balance of payments and international investment position, and monetary and financial statistics).

Government budgeting and accounting systems are based on national rules which are not aligned with macroeconomic statistics guidelines. This leads to inconsistencies in different reporting formats. In this regards, GFSM 2014-based presentation serves as a bridge to align budgeting and accounting information with macroeconomic to support interaction within and between technical specialists (economists and accountants) and policy makers in the formulation of fiscal and macroeconomic policy.

Broadly, the same principles and concepts are applied in GFS, national accounts, balance of payments and international investment position, and monetary and financial statistics. For example, transactions in financial assets and liabilities, net lending/net borrowing in GFS conceptually is the same as in the SNA. GFS net operating balance differs from SNA saving with the value of capital transfers and taxes on capital transactions, and capitalized expense. Government final consumption expenditure and gross fixed capital formation are used in calculating GDP from expenditure approach. The harmonization between GFS and other macroeconomic datasets means that data from GFS can be utilized as source data, or can be combined with data from other datasets to assess general government sector developments in relation to the rest of the economy and the impact on main macroeconomic indicators such as GDP, national income, consumption, saving, investment, and others. GFS supports the analysis of the government’s contribution to macroeconomic developments and the achievement of fiscal policy objectives such as macroeconomic stability, efficient resource allocation, redistribution of income and service delivery.

3. The GFSM 2014-based presentation supports the compilation of internationally comparable statistics for the general government sector and its subsectors and facilitates cross-country analyses of government operations and stock positions. Globalization increases demands for internationally comparable GFS that allow detecting sources of vulnerability and taking timely corrective measures to prevent international financial crisis and the associated large fiscal deficits and rising debt levels in many countries. The GFSM 2014 represents the internationally recognized guidelines for compiling fiscal statistics. The basic concepts, classifications, and definitions employed in GFSM 2014 reflect economic principles that should be universally valid to all types of economies regardless the institutional or legal structure of a country’s government, the sophistication of its statistical development, or the financial accounting system of government. Under the Sustainable Development Goals, a significant attention is given to building effective, accountable and inclusive institutions at all levels. Fiscal reporting becomes an important instrument in assessing transparency of public finance and government’s ability to achieve development objectives, including delivering services to the public. The United Nations, the IMF, the WB, the OECD, and other international organizations use GFS framework to evaluate the efficiency of PFM system, fiscal transparency, and good governance in Cambodia.

Appendix VI. Main Aggregates on Extrabudgetary Units, 2015–2018

Descripti on 29 PAEs	2015				2016					2017					2018
	Planning	Implementation			Planning	Implementation				Planning	Implementation				Planning	Implementation
	Planning	Amount	% Planning.15	% GDP	Planning	Amount	% Planning.16	%Imple.15	% GDP	Planning	Amount	% Planning.17	%Imple.16	% GDP	Planning	Amount	% Planning.18	%Imple.17	% GDP
I. Total Revenue	990,500.9	756,934.2	76.4%	1.03%	1,120,028.2	879,989.3	78.6%	116.3%	1.08%	1,052,487.8	1,140,375.7	108.4%	129.6%	1.27%	1,104,715.1	1,461,010.6	132.3%	128.2%	1.48%
1. Revenue	929,292.9	737,546.3	79.4%	1.00%	1,067,173.7	846,191.5	79.3%	114.7%	1.04%	1,009,2 18.6	837,496.3	83.0%	99.0%	0.93%	1,070,470.9	975,319.7	91.1%	116.5%	0.99%
1.1 Grants from Central Government	186,855.9	174,942.6	93.6%	0.24%	238,717.9	240,519.3	100.8%	137.5%	0.30%	268,434.4	264,789.2	98.6%	110.1%	0.30%	270,487.1	219,863.8	81.3%	83.0%	0.22%
Compensation of employee s: Wages and salaries	65,087.3	58,955.3	90.6%	0.08%	5,190.7	66,517.6	1281.5%	112.8%	0.08%	57,407.7	62,319.2	108.6%	93.7%	0.07%	66,527.9	10,253.7	15.4%	16.5%	0.01%
Other expenses	121,768.6	115,987.3	95.3%	0.16%	233,527.2	174,001.7	74.5%	150.0%	0.21%	211,026.7	202,469.9	95.9%	116.4%	0.23%	203,959.3	209,610.1	102.8%	103.5%	0.21%
1.2 institutional Direct Revenue	742,437.0	562,603.7	75.8%	0.77%	828,455.8	605,664.0	73.1%	107.7%	0.75%	738,277.2	549,387.8	74.4%	90.7%	0.61%	798,080.8	726,721.9	91.1%	132.3%	0.74%
1.3 Other revenue	0.0	0.0	-	0.00%	0.0	8.3	-	-	0.00 %	2,507.0	23,319.3	930.2%	282658.3%	0.03%	1,903.0	28,734.0	1509.9%	123.2%	0.03%
2.Internal Financing	10,308.0	0.0	0.0%	0.00%	2,149.8	18,526.5	861.8%	-	0.02%	13,897.6	2,725.2	19.6%	14.7%	0.00%	34,085.6	9,284.0	27.2%	340.7%	0.01%
3.Cash Balance (Surplus)	50,900.0	19,387.9	38.1%	0.03%	50,704.8	15,271.2	30.1%	78.8%	0.02%	29,371.6	300,154.2	1021.9%	1965.5%	0.33%	158.6	476,406.9	300382.7%	158.7%	0.48%
4.Provisio n for amortization of real estate	0.0	0.0	-	0.00%	0.0	0.0	-	-	0.00%	0.0	0.0	-	-	0.00%	0.0	0.0	-	-	0.00%
II. Total Expense	771,691.4	690,561.9	89.5%	0.94%	890,511.4	826,875.6	92.9%	119.7%	1.02%	737,490.2	645,526.3	87.5%	78.1%	0.72%	875,307.0	810,490.0	92.6%	125.6%	0.82%
1.Current Expense	483,641.2	397,003.4	82.1%	0.54%	591,51 4.2	510,006.6	86.2%	128.5%	0.63%	710,482.8	589,221.6	82.9%	115.5%	0.66%	734,873.0	678,536.7	92.3%	115.2%	0.69%
Wages	195,842.7	167,566.0	85.6%	0.23%	216,143.3	198,661.9	91.9%	118.6%	0.24%	299,395.4	241,466.7	80.7%	121.5%	0.27%	266,209.7	215,817.7	81,1%	89.4%	0.22%
Non-wages	287,798.5	229,437.4	79.7%	0.31%	375,370.8	311,344.7	82.9%	135.7%	0.38%	411,087.4	347,754.9	84.6%	111.7%	0.39%	468,663.3	462,719.1	98.7%	133.1%	0.47%
2.Grant to Central Government	226,600.0	226,619.0	100.0%	0.31%	284,050.0	284,050.0	100.0%	125.3%	0.35%	0.0	30,917.0	-	10.9%	0.03%	0.0	0.0	-	0.0%	0.00%
3.Capital Expense	61,45 0.1	66,93 9.5	108.9%	0.09%	14,947.3	32,819.0	219.6%	49.0%	0.04%	27,007.4	25,387.7	94.0%	77.4%	0.03%	140,434.1	131,813.0	93.9%	519.2%	0.13%
III. Overall Balance/’Surplus	218,809.6	66,372.3	30.3%	0.09%	229,516.8	53,113.7	23.1%	80.0%	0.07%	314,997.6	494,849.4	157.1%	931.7%	0.55%	229,408.0	650,520.6	283.6%	131.5%	0.66%

Descripti on 29 PAEs	2015				2016					2017					2018
	Planning	Implementation			Planning	Implementation				Planning	Implementation				Planning	Implementation
	Planning	Amount	% Planning.15	% GDP	Planning	Amount	% Planning.16	%Imple.15	% GDP	Planning	Amount	% Planning.17	%Imple.16	% GDP	Planning	Amount	% Planning.18	%Imple.17	% GDP
I. Total Revenue	990,500.9	756,934.2	76.4%	1.03%	1,120,028.2	879,989.3	78.6%	116.3%	1.08%	1,052,487.8	1,140,375.7	108.4%	129.6%	1.27%	1,104,715.1	1,461,010.6	132.3%	128.2%	1.48%
1. Revenue	929,292.9	737,546.3	79.4%	1.00%	1,067,173.7	846,191.5	79.3%	114.7%	1.04%	1,009,2 18.6	837,496.3	83.0%	99.0%	0.93%	1,070,470.9	975,319.7	91.1%	116.5%	0.99%
1.1 Grants from Central Government	186,855.9	174,942.6	93.6%	0.24%	238,717.9	240,519.3	100.8%	137.5%	0.30%	268,434.4	264,789.2	98.6%	110.1%	0.30%	270,487.1	219,863.8	81.3%	83.0%	0.22%
Compensation of employee s: Wages and salaries	65,087.3	58,955.3	90.6%	0.08%	5,190.7	66,517.6	1281.5%	112.8%	0.08%	57,407.7	62,319.2	108.6%	93.7%	0.07%	66,527.9	10,253.7	15.4%	16.5%	0.01%
Other expenses	121,768.6	115,987.3	95.3%	0.16%	233,527.2	174,001.7	74.5%	150.0%	0.21%	211,026.7	202,469.9	95.9%	116.4%	0.23%	203,959.3	209,610.1	102.8%	103.5%	0.21%
1.2 institutional Direct Revenue	742,437.0	562,603.7	75.8%	0.77%	828,455.8	605,664.0	73.1%	107.7%	0.75%	738,277.2	549,387.8	74.4%	90.7%	0.61%	798,080.8	726,721.9	91.1%	132.3%	0.74%
1.3 Other revenue	0.0	0.0	-	0.00%	0.0	8.3	-	-	0.00 %	2,507.0	23,319.3	930.2%	282658.3%	0.03%	1,903.0	28,734.0	1509.9%	123.2%	0.03%
2.Internal Financing	10,308.0	0.0	0.0%	0.00%	2,149.8	18,526.5	861.8%	-	0.02%	13,897.6	2,725.2	19.6%	14.7%	0.00%	34,085.6	9,284.0	27.2%	340.7%	0.01%
3.Cash Balance (Surplus)	50,900.0	19,387.9	38.1%	0.03%	50,704.8	15,271.2	30.1%	78.8%	0.02%	29,371.6	300,154.2	1021.9%	1965.5%	0.33%	158.6	476,406.9	300382.7%	158.7%	0.48%
4.Provisio n for amortization of real estate	0.0	0.0	-	0.00%	0.0	0.0	-	-	0.00%	0.0	0.0	-	-	0.00%	0.0	0.0	-	-	0.00%
II. Total Expense	771,691.4	690,561.9	89.5%	0.94%	890,511.4	826,875.6	92.9%	119.7%	1.02%	737,490.2	645,526.3	87.5%	78.1%	0.72%	875,307.0	810,490.0	92.6%	125.6%	0.82%
1.Current Expense	483,641.2	397,003.4	82.1%	0.54%	591,51 4.2	510,006.6	86.2%	128.5%	0.63%	710,482.8	589,221.6	82.9%	115.5%	0.66%	734,873.0	678,536.7	92.3%	115.2%	0.69%
Wages	195,842.7	167,566.0	85.6%	0.23%	216,143.3	198,661.9	91.9%	118.6%	0.24%	299,395.4	241,466.7	80.7%	121.5%	0.27%	266,209.7	215,817.7	81,1%	89.4%	0.22%
Non-wages	287,798.5	229,437.4	79.7%	0.31%	375,370.8	311,344.7	82.9%	135.7%	0.38%	411,087.4	347,754.9	84.6%	111.7%	0.39%	468,663.3	462,719.1	98.7%	133.1%	0.47%
2.Grant to Central Government	226,600.0	226,619.0	100.0%	0.31%	284,050.0	284,050.0	100.0%	125.3%	0.35%	0.0	30,917.0	-	10.9%	0.03%	0.0	0.0	-	0.0%	0.00%
3.Capital Expense	61,45 0.1	66,93 9.5	108.9%	0.09%	14,947.3	32,819.0	219.6%	49.0%	0.04%	27,007.4	25,387.7	94.0%	77.4%	0.03%	140,434.1	131,813.0	93.9%	519.2%	0.13%
III. Overall Balance/’Surplus	218,809.6	66,372.3	30.3%	0.09%	229,516.8	53,113.7	23.1%	80.0%	0.07%	314,997.6	494,849.4	157.1%	931.7%	0.55%	229,408.0	650,520.6	283.6%	131.5%	0.66%

Appendix VII. Consistency in Annual Data Series

I. Budgetary Central Government

STA Queries

GDP Comments

Mission’s Recommendations

1. In revenue, there are a few taxes series that have some unusual patterns – are these really accurate? The unusual patterns in tax revenue caused by the reclassification of Tax accounts to Nontax accounts.

a. Taxes on specific services (1144) abruptly drops to zero in 2016, as do Taxes on use of goods and on permission to use goods or perform activities (1145)

Taxes on specific services (1144) were mapped from Taxes on specific services (7004), which has 6 sub-accounts (70041–70046). From 2016 onward, three sub-accounts: Casino tax (70041), Lottery Tax (70042), and Sport betting tax (70043) were reclassified from Tax revenue to Non-tax revenue (73061, 73062, and 73062) in national classification, that are mapped to Other Revenue (1421) in GFS.

Before 2016, Taxes on use of goods and on permission to use goods or perform activities (1145) were mapped from Taxes on goods and services or activities (7005), which consisted of 2 sub-accounts of tax revenue: Export Licenses (70051) and Local Business Licenses (70052). The causes of the unusual pattern are due to the reclassification of the two sub-accounts of Export Licenses (73065) and Local Business Licenses (73066) from Tax revenue to Non-tax revenue, and respectively mapped them as Other revenue (1421) in GFS.

According to GFSM 2014, Taxes on specific services (1144) are levied on payments for specific services, including taxes levied on gambling and betting stakes for horse races, football pools, and lotteries, and taxes on entry to casinos and race. In this regard, the mission considered the nature of Casino Tax (70041), Lottery Tax (70042), and Sport Betting Tax (70043) as Tax Revenue, although the accounts have been reclassified to Non-tax Revenue (73061, 73062, and 73062) in national classification. The mission recommended the MEF GDP to map the national classification to Taxes on specific service (1144).

According to GFSM 2014, Taxes on use of goods and on permission to use goods or perform activities (1145) are fees levied for the issuance of a license or permit that are not commensurate with the cost of the control function of government. There are cases where the government provides something to the individual unit directly in return for a payment in the form of the granting of a permit or authorization. In such instances, the payment is part of a mandatory process that ensures proper recognition of ownership or ensures that activities are performed under the authorization of the law. In this regard, unless there is evidence that fees levied for the issuance of a license or permit are commensurate with the cost of the control function of government, The mission recommended the MEF GDP to map the national classification to Taxes on use of goods and on permission to use goods or perform activities (1145). The reclassification in the national classification, for example from Tax Revenue to Non-tax Revenue, would not have any impact to the mapping to GFS classification, as long as the economic substance remains the same.

b. In taxes on international trade and transactions, taxes on exports (1152) drop sharply in 2016

The significant drop on Tax on exports (1152) caused by the reclassification of Management commissions and export visas from tax revenue (71015) to Non-tax revenue (73067). The reclassification changed the mapping to GFS from Tax on exports (1152) to Other revenue (1421) in 2016.

According to GFSM 2014, Taxes on exports (1152) include all levies that become payable on goods that are transported out of the country, or services that are provided to nonresidents by residents. The mission recommended the MEF GDP to review the definition and coverage of Management commissions and export visas and map the updated COA to corresponding GFS account consistently based on the economic substance. The reclassification in the national classification, for example from Tax revenue to Non-tax revenue, would not have any impact to the mapping to GFS classification, as long as the economic substance remains the same.

c. There are exchange taxes (1154) recorded in some, but not all years, with especially large amounts in 2013 and 2014 – but these taxes are actually pretty rare in the real world -the compilers may want to check these are correctly classified.

The exchange taxes (1154) were mapped from Other exchange revenue (7398) until 2014. The Other exchange revenue (7398) is reclassified to Non-tax revenue starting from 2015.

According to GFSM 2014, Exchange profits (1154) include the profits generated when the monopoly powers of government or monetary authorities are exercised to extract a margin between the purchase and sale prices of foreign exchange, other than to cover administrative costs. The revenue derived constitutes a compulsory levy extracted from both purchaser and seller of foreign exchange. Similarly, an implicit tax results from the operation of a multiple exchange rate regime by the central bank or other official agency. It is the common equivalent of an import duty and export duty levied in a single exchange rate system or of a tax on the sale or purchase of foreign exchange.

The mission recommended the MEF GDP to review the definition and coverage of Other exchange revenue (7398) and map the updated COA code to corresponding GFS account consistently. The reclassification in the national classification, for example from Tax revenue to Non-tax revenue, would not have any impact to the mapping to GFS classification, as long as the economic substance remains the same.

2. In other revenue, I presume the breakdown of interest in lines 14111–14113 is actually NA, rather all arising from residents other than GG units, but it would be good to confirm this.

The inconsistency of the breakdown of interest (1411) is due to changes from GFSM 2001 to GFSM 2014. 2005–2014 data were compiled based on GFSM 2001 that did not have breakdown of interest line. Data from 2015 onwards were compiled based on GFSM 2014 that have breakdown of interest line (code 14111–14113).

According to GFSM 2014, Interest (1411) is a form of investment income that is receivable by the owners for putting certain kinds of financial assets at the disposal of another institutional unit. Interest should be recorded according to the subsector of the counterparty, to allow for consolidation of the general government and public sectors. Interest (1411) consist of Interest from non-residents (14111), Interest from residents other than general government (14112), and Interest from other general government units (14113).

The mission recommended the MEF GDP to review the definition, coverage and source data of the updated COA mapped to Interest from residents other than general government (14112), and check whether BCG only puts its interest bearing financial assets at the disposal of resident institutional units other than general government. If the source data does not allow the MEF GDP to record interest according to the subsector of the counterparty, the mission recommended the MEF GDP to record the breakdown of interest in lines 14111–14113 as Not Available (NA) until the source of data allows or appropriate estimation method is applied.

If the MEF GDP confirms that the updated COA has been mapped accordingly to Interest from residents other than general government (14112), the mission recommended the MEF GDP to back cast the 2005–2014 interest to the same breakdown with that of 2015 onward to maintain consistency.

3. Also in property income, the dividends (1412) recorded in 2018 is significantly larger than in any previous year—what was the source of this large dividend

In 2018, the dividend (1412) is noticeably greater than the previous years due to new transactions from State-owned Enterprise, recorded in Dividend from public enterprises (72012).

According to GFSM 2014, Dividends (1412) are the distributed earnings allocated to government or public sector units, as the owners of equity, for placing funds at the disposal of corporations. Dividends are notionally paid out of the current period’s operating surplus. The exception occurs when dividends are disproportionately large relative to the recent level of dividends and earnings, often referred to as super-dividends. Super-dividends are often based on accumulated reserves, privatization receipts, other sales of assets, or holding gains. Any dividends declared greatly in excess of the recent level of dividends and earnings should be recorded as a transaction in financial assets, specifically the withdrawal of owners’ equity from the corporation.

The mission recommended the MEF GDP to review the definition, coverage and source of data of Dividend from public enterprises (72012), particularly the new transactions from State-owned Enterprises, to ensure that the updated COA has been mapped accordingly and consistently to corresponding GFS account. The mission also recommended the MEF GDP to further check the nature of the new transactions from State-owned Enterprises, and their likelihood to be considered as super dividends.

4. In expense, the subsidies breakdown is very inconsistent— is this accurate, or is the breakdown between subsidies to public and private enterprises only available in some years?

Yes, it is accurate. In fact, it can be seen that the subsidies to private enterprises were only recorded in some years. From the source data point of view, Grants to private enterprise (6505) has no practical data from 2015 onward. However, we will further look into this matter for a more comprehensive clarification.

5. Also in expense, the breakdown of social benefits in the early part of the time series is different to that from 2009 onwards— is this a real change, or is the breakdown just NA before 2009?

The breakdown of social benefit is inconsistent caused by the reclassification of account mapped throughout the given years. Therefore, we can conclude that it is a real change.

According to GFSM 2014, Social benefits are current transfers receivable by households intended to provide for the needs that arise from social risks that may adversely affect the welfare of the households concerned, for example, sickness, unemployment, and retirement. Social benefits are classified as social security, social assistance, and employment-related social insurance schemes, and then by whether the payment was made in cash or in kind. Examples of social benefits are the provision of medical services, unemployment compensation, and social security pensions.

The mission recommended the MEF GDP to review the definition, coverage and source data of the updated COA, mapped to GFS classification of social assistance and employment-related social insurance schemes, to ensure that the mapping to corresponding GFS classification has been done accordingly and consistently. The changes in GFS classification breakdown, should be back casted to the earliest data available to maintain data consistency.

6. In table 3, could they fill the fixed assets data gap in 2013?

In table 3, in our updated time series file, we have filled the breakdown of the fixed asset data (3111–3114).

TRANSACTIONS IN ASSETS AND LIABILITIES		2013
	Accounting method:	Non Cash
3	CHANGE IN NET WORTH: TRANSACTIONS c/	3,726,078.6
31	Net acquisition of nonfinancial assets d/	5,375,707.1
311	Fixed assets	5,374,244.5
3111	Buildings and structures	5,288,080.3
3112	Machinery and equipment	78,453.1
3113	Other fixed assets	7,711.1
3114	Weapons systems

According to GFSM 2014, Net acquisition of fixed assets equal the acquisition minus disposals of nonfinancial assets and consumption of fixed capital.

The mission recommended the MEF GDP to review definition, coverage and source data of breakdown of net acquisition of fixed assets (building and structures, machinery and equipment, other fixed assets and weapon systems), and map the updated COA to corresponding GFS classification consistently based on the economic substance of the national classification. The changes in GFS classification breakdown should be back casted to the earliest data available to maintain data consistencies.

7. In the net incurrence of liabilities, what are the transactions in the first part of the series in currency and deposits (3302) and the single transactions in equity (3305)?

From 2005–2008, there were transactions recorded in the net incurrence of liabilities in currency and deposit (3302) while the rest of the given years exhibited zero value. This issue was possibly caused by the reclassification of source data. The MEF GDP need to further research and critically look into these sets of data.

The net incurrence of liabilities in equity and investment fund shares (3305) was the results of Domestic creditors (3315) + External Creditors (3325), in which both have 0 value. The single transaction in 2006 was an unintended error caused by formulas.

The net incurrence of liabilities in loan (3304) should be 620.9 instead of 514.6 in 2016. The missing of 109.2 was recorded in the net incurrence of liabilities in Equity and Investment Fund Shares (3305), instead of the net incurrence of liabilities in loan (3304), which explains these unusual patterns.

According to GFSM 2014, the net incurrence of liabilities represents both incurrence and repayment of liabilities.

The mission recommended the MEF GDP to review the nature of the net incurrence of liabilities in currency and deposits and reclassify it to appropriate debt instruments. It is uncommon for BCG to have net incurrence of liabilities in currency and deposits.

The BCG net incurrence of liabilities in currency and deposits consist of several sub accounts of LGs, line ministries and the private sector companies. Based on the information from the MEF GDP, net incurrence of liabilities in currency and deposits are actually flows from deposits/prepayments made by the private sector companies when making contracts with government units. Deposits from private sector companies should be reclassified as other account payables.

The mission also recommended the MEF GDP to review the horizontal and vertical checks, and derivation tables before publishing the annual data series on MEF website or IMF’s Government Finance Statistics Yearbook (GFSY).

8. Why was there no transaction in other accounts payable in 2018? This was reported in every year except 2018.

Staring from 2018, there weren’t any transactions recorded in security deposits account because there was zero practical value in the mapped account 77011 since then. Team will double check with data source after the public financial clearance law release.

According to GFSM 2014, other accounts receivable/payable consist of trade credits and advances and miscellaneous other items due to be paid or received. Transactions in trade credits occur when credit is extended directly to purchasers of goods and services. Advances are recorded for amounts paid in advance of work being performed, or for prepayments of goods and services. Miscellaneous other accounts receivable/payable occur with respect to accrued but unpaid taxes, dividends, purchases and sales of securities, rent, wages and salaries, social contributions, social benefits, and similar transactions. This category is used to bridge the timing difference between the occurrence of economic events and the time the actual cash flows take place.

The mission recommended the MEF GDP to review the definition, coverage and source data of the updated COA mapped to Other account payable, particularly account 77011 to ensure that the mapping to corresponding GFS classification has been done accordingly and consistently.