Changes in data of general government budget deficit and debt notification of October 2014 as compared to notification data of April 2014

Annex

Changes in data of general government budget deficit and debt notification of October 2014 as compared to notification data of April 2014

On September 2014 in compliance with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (ESA 2010) all European Union (EU) member states carried out changes in previously calculated and published data of system of national accounts. Methodology changes confirmed with this regulation determined new order which must be followed when determining borders of institutional sectors, especially paying attention to correct comprehension of general government sector. Other methodological requirements also were implemented which affected absolute level of gross domestic product (GDP) and its components. Detailed explanation on the indicators obtained in the result of data revision can be found in press release of the Central Statistical Bureau (CSB) of 30 September 2014.

Methodological changes mentioned have also affected the amount of general government budget deficit and consolidated gross debt and relation to GDP.  Compared to previously published data of notification on April 2014, main changes in general government budget data were following:

  • positive/negative influence of swap transactions are not taken into account any more, because ESA 2010 foresees that all interest rates arising from swap transactions must be listed as financial flows which do not affect general government budget deficit;
  • changes in classification of sectors were carried out, including in government sector financial institutions which have received such financial support as defeasance by the government (ESA 2010 methodology articles No. 20.46-20.48);
  • adjustment of impact of lump sum payment, related with transmission of liabilities from the 2nd pillar pension schemes  to the 1st pillar, was carried out (ESA 2010 methodology articles No.20.273 – 20.275).

Methodological changes and data update were carried out, e.g., methodological improvements for the calculation of EU funds in data on companies reclassified to government sector, surveying the largest receivers of the EU funds.

Changes in general government budget data1, EUR mln

 

2010

2011

2012

2013

 

General government budget deficit

in notification of April 2014

 

-1484.8

 

-716.0

 

-293.6

 

-223.8

 Changes:

 

 

 

 

Introduction of methodological requirements of ESA 2010 – total:

-11.4

17.5

85.6

1.6

        Exclusion of swap transaction interest

5.5

-1.8

-9.1

12.0

         Changes in sector classification

-16.0

21.9

99.5

-

         Exclusion of single payments of pension scheme liabilities

-1.0

-2.6

-4.8

-10.4

Improvement of data sources and methods

-0.02

2.5

22.2

22.6

Methodological improvements

-0.02

2.5

22.2

0.9

Substituting operational data with audited annual data

-

-

-

21.7

General government budget deficit in notification of October 2014

 

-1496.2

 

-696.0

 

-185.8

 

-199.6

 

 

 

 

 

General government budget deficit as % of GDP

 

 

 

 

in notification of April 2014

-8.2

-3.5

-1.3

-1.0

in notification of October 2014

-8.2

-3.4

-0.8

-0.9

Difference, percentage points

0.0

+0.1

+0.5

+0.1

Of which

 

 

 

 

influence of methodological changes of ESA 2010

-0.1

+0.1

+0.4

+0.0

Influence of improvement of data sources and methods

0.0

0.0

+0.1

+0.1

Data on general government consolidated gross debt the same as data on budget were also updated according to methodological requirements of the new ESA 2010. Main changes are related to changes in classification of sectors – including in government sector financial institutions which have received such financial support as defeasance by the government, government debt has increased proportionally to financial liabilities of these units.

Changes in data on general government consolidated gross debt, EUR mln

 

2010

2011

2012

2013

General government consolidated gross debt at nominal value at end of year

in data on notification of April 2014

8 096.4

8 526.6

9 012.6

8 873.3

Changes:

 

 

 

 

implementation of methodological requirements of ESA 2010 - changes in classification of sectors

400.1

132.5

-

-

Substituting operational data with audited annual data

-

-

-

2.6

General government consolidated gross debt at nominal value at end of year

in data on notification of October 2014

8 496.5

8 659.1

9 012.6

8 875.9

 

 

 

 

 

General government consolidated gross debt at nominal value at end of year as % of GDP

 

 

 

 

in notification of April 2014

44.5

42.0

40.8

38.1

in notification of October 2014

46.8

42.7

40.9

38.2

Difference

2.3

0.7

0.1

0.1

Of which

 

 

 

 

influence of methodological changes of ESA 2010

2.2

0.7

-

-

Substituting operational data with audited annual data

-

-

-

0.0

 

More information:
Government Finances Section
Vija Veidemane
Tel.: +371 67366963



1 Differences in totals are due to rounding.