Government Finance Statistics Manual 2014

1 Government Finance Statistics Manual 2014 MANUALINTERNATIONAL monetary FUND2014 2014 international monetary FundCataloging-in-Publication DataJoint Bank- fund LibraryGovernment fi nance Statistics Manual 2014. Washington, : international monetary fund , ; bibliographical references and index. ISBN: 978-1-49834-376-31. Finance , Public Statistics Handbooks, manuals, etc. I. international monetary fund . 2014 ISBN: 978-1-49834-376-3 (paper) 978-1-49837-921-2 (ePub)978-1-49836-697-7 (Mobi pocket)978-1-49837-916-8 (web PDF)Disclaimer: Th e views expressed in this book are those of the authors and should not be reported as or attributed to the international monetary fund , its Executive Board, or the governments of any of its member send orders to: international monetary fund , Publication Box 92780, Washington, DC 20090, : (202) 623-7430 Fax: (202) 623-7201E-mail.

2 XixPreface ..xxiChapters1. Introduction.. 1 Purpose of the Manual .. 1Th e Evolution of international Statistical Guidelines on GFS.. 2 History .. 2Th e Update of the GFSM 2001 .. 2 Uses of the GFS Framework .. 3 Structure and Features of the GFS Framework.. 3 Methodological Diff erences with the GFSM 1986 .. 4 Coverage.. 5 Basis of Recording Economic Events .. 5 Valuation .. 5 Balance Sheets .. 5 Integration of Flows and Stock Positions .. 5Th e Analytic Framework .. 5 Harmonization with Other Methodologies .. 6 Implementation of the GFS Framework.. 6 Structure of the Manual .

3 62. Institutional Units and Sectors.. 8 Introduction.. 8 Residence.. 9 Institutional Units.. 11 Defi nition of an Institutional Unit .. 11 Types of Institutional Units .. 12 Households .. 12 Legal and social entities .. 13 Corporations .. 13 Nonprofi t institutions (NPIs) .. 14 Government units .. 14 Application of the Defi nition of an Institutional Unit to Government .. 15 Institutional Sectors .. 16 Defi ning Institutional Sectors .. 16 Nonfi nancial corporations sector .. 16 Financial corporations sector .. 17 General Government sector .. 18 Contents ContentsivHouseholds sector.

4 18 Nonprofi t institutions serving households (NPISHs) sector .. 18Th e Use of Subsectors.. 19 Institutional Coverage and Sectorization of the Public Sector .. 19 Delineating General Government and Public Corporations .. 19Th e General Government Sector and Its Subsectors .. 22 Central Government .. 24 State governments .. 25 Local governments .. 26 Social security funds.. 27Th e Public Corporations Sector and Its Subsectors .. 27Th e public corporations subsector .. 27 Government control of corporations .. 28 Types of public corporations .. 30 Public nonfi nancial corporations subsector.

5 30 Public fi nancial corporations subsector.. 30 Public deposit-taking corporations .. 30Th e central bank .. 30 Public deposit-taking corporations except the central bank.. 30 Other public fi nancial corporations .. 31 Other groupings of public sector units .. 31 Decision Tree for Sector Classifi cation of the Public Sector .. 31 Practical Application of Sector Classifi cation Principles.. 33 Identifying Quasi-corporations .. 33 Distinguishing Head Offi ces and Holding Companies .. 33 Restructuring Agencies .. 34 Financial Protection Schemes .. 35 Special Purpose Entities.. 35 Joint Ventures.

6 36 Sinking Funds .. 36 Pension Schemes .. 37 Provident Funds .. 37 Sovereign Wealth Funds .. 37 Market Regulatory Agencies .. 38 Development Funds and/or Infrastructure Companies or Entities .. 39 3. Economic Flows, Stock Positions, and Accounting Rules .. 40 Introduction.. 40 Economic Flows.. 40 Transactions.. 40 monetary transactions .. 41 Nonmonetary transactions .. 42 Two-party nonmonetary transactions .. 43 Internal transactions.. 43 Rearrangements of some transactions .. 43 Rerouting .. 43 Partitioning .. 44 Reassignment.. 44 Other Economic Flows.. 44 Holding gains and losses.

7 44 Other changes in the volume of assets/liabilities .. 45 Contents vStock Positions.. 45 Economic Benefi ts .. 45 Ownership .. 45 Defi nition of Assets and Liabilities.. 46 Financial assets and liabilities .. 46 Nonfi nancial assets .. 47 Accounting Rules.. 47 Type of Accounting System .. 47 Time of Recording Flows .. 48 Alternative recording bases .. 49 Using the accrual basis of recording in the Statements of Operations and Other Economic Flows, and Balance Sheet of the GFS framework .. 50 Application of the accrual principles .. 51 Time of recording and measurement of taxes and other compulsory transfers.

8 51 Time of recording dividends .. 52 Time of recording transactions in goods, services, and nonfi nancial assets .. 52 Time of recording transactions in fi nancial assets and liabilities .. 53 Time of recording other economic fl ows.. 54 Using the cash basis of recording in the Statement of Sources and Uses of Cash .. 54 Valuation .. 55 General rule .. 55 Valuation of transactions .. 55 Valuation of stock positions .. 56 Valuation adjustments in special cases .. 57 Valuation of other economic fl ows .. 59 Holding gains and losses .. 59 Other changes in the volume of assets .. 59 Currency.

9 59 Unit of account .. 59 Currency conversion .. 60 Domestic and foreign currency .. 60 Currency of denomination and currency of settlement .. 60 Derived Measures .. 60 Netting of Flows and Stock Positions.. 61 Consolidation .. 62 Defi nitions .. 62 Reasons for consolidation .. 63 Conceptual guidelines .. 63 Implementing consolidation .. 64 Consolidation in other datasets .. 652008 System of National Accounts .. 65 Financial statements .. 65 4. The Government Finance Statistics Analytic Framework .. 66 Introduction.. 66 Analytic Objectives.. 67 Construction of the Analytic Framework: Relation to the GFSM 1986.

10 67 Components and Concepts of the Analytic Framework.. 67Th e Statement of Operations .. 69 Revenue and Expense.. 71 ContentsviTransactions in Nonfi nancial Assets .. 71 Transactions in Financial Assets and Liabilities .. 71Th e Statement of Sources and Uses of Cash.. 73Th e Statement of Other Economic Flows.. 74Th e Balance Sheet .. 75 Assets .. 75 Liabilities .. 75Th e Statement of Total Changes in Net Worth .. 76Th e Summary Statement of Explicit Contingent Liabilities and Net Implicit Obligations for Future Social Security Benefi ts.. 76 Annex: Using GFS for Fiscal Analysis.