Government finance statistics - quarterly data

Data extracted on 23 April 2018.

Planned article update: 24 July 2018.

Highlights

In the fourth quarter of 2017, the government deficit to GDP stood at -0.6 % for both the EU and the euro area.

At the end of the fourth quarter of 2017, the government debt to GDP ratio in the euro area stood at 86.7%, compared with 88.1% at the end of the third quarter of 2017.

Figure 1: EU-28 and EA-19 quarterly net lending (+)/ net borrowing (-), % of GDP, seasonally adjusted data
Source: Eurostat (gov_10q_ggnfa)


In recent years Eurostat has significantly expanded the range of integrated quarterly data on government finance statistics available, providing a timely and increasingly high quality picture of the evolution of government finances in the European Union (EU). The data presented in this article reflect both non-financial and financial (quarterly non-financial and financial accounts for general government) transactions and cover all European Union (EU-28) countries as well as Iceland, Norway and Switzerland.

This article is based on data transmitted to Eurostat at the end of March 2018, includes data coverage of the fourth quarter of 2017, and follows ESA 2010 methodology. It is supplemented by non-financial seasonally adjusted data estimated provided on a voluntary basis by EU and EFTA countries' National Statistical Institutes. Eurostat regularly publishes seasonally adjusted and working day adjusted quarterly data on government revenue, expenditure and surplus (+)/ deficit (-), currently for twenty-two Member States, Switzerland and the EU aggregates.

In the fourth quarter of 2017, the seasonally adjusted general government deficit to GDP ratio stood at -0.6 % in the euro area (EA-19), unchanged compared to the third quarter of 2017. In the EU-28, the deficit to GDP ratio also stood at 0.6 %, a decrease compared with -0.7 % in the previous quarter.


Full article


Quarterly non-financial accounts for general government

Government revenue and expenditure

Both total revenue and expenditure exhibit a clear seasonality. In order to interpret trends for the most recent quarters, seasonally adjusted data is presented in addition to the raw data transmitted by EU Member States (see explanation below).

In the fourth quarter of 2017, seasonally adjusted total government revenue in the euro area amounted to 46.1 % of GDP, unchanged compared with the third quarter of 2017 (46.1 % of GDP). Total government expenditure in the euro area stood at 46.7 % of GDP, also unchanged compared to the previous quarter.

In the EU-28, total government revenue was 44.9 % of GDP in the fourth quarter of 2017, compared with 44.8 % in the third quarter of 2017. Total government expenditure in the EU-28 was 45.5 % of GDP, unchanged compared to the previous quarter.

Figure 2: EA-19 total revenue and total expenditure, seasonally and non-adjusted adjusted data, billion euro
Source: Eurostat (gov_10q_ggnfa)


Figure 3: EA-19 total revenue and total expenditure, seasonally and non-adjusted adjusted data, % of GDP
Source: Eurostat (gov_10q_ggnfa)

From the fourth quarter of 2010 onwards, a decreasing trend in the level of the total expenditure-to-GDP ratio is visible, reflecting an absolute decrease in total expenditure as well as the effects of renewed growth in the EU and the euro area (all seasonally adjusted). Visible deteriorations in the second and fourth quarters of 2012, were caused by a series of one-off effects in several Member States. Notably, in the fourth quarter of 2012 and in the second quarter of 2013, total expenditure increased slightly in both areas, influenced by interventions to support the banking sector in several Member States, notably in Spain in the fourth quarter of 2012 and in Greece in the second quarter of 2013. Supports to the banking sector in several Member States are also the main reason for the increase in the fourth quarter of 2015. In the first quarter of 2016, mainly due to one-off effects in several Member States, seasonally adjusted government expenditure increased significantly. The decreases in EU and euro area deficits in the third and fourth quarter of 2017 are mainly explained by decreasing expenditure in the face of stable revenue.

Table 1: EA-19 and EU-28 quarterly net lending (+)/ net borrowing (-), total expenditure and total revenue as a percentage of GDP, seasonally adjusted data
Source: Eurostat (gov_10q_ggnfa), seasonally adjusted data: Eurostat and National Statistical Institutes estimates


Table 2: Quarterly net lending (+)/ net borrowing (-) as a percentage of GDP, seasonally adjusted data
Source: Eurostat (gov_10q_ggnfa), seasonally adjusted data: National Statistical Institute estimates
Table 3: Quarterly net lending (+)/ net borrowing (-) by country, non-seasonally adjusted data
Source: Eurostat (gov_10q_ggnfa)

General government deficit

The difference between general government total revenue and total expenditure is known in ESA2010 terminology as general government net lending (+)/ net borrowing (-) (ESA2010 category B.9) and is usually referred to as government deficit (or surplus). This figure is an important indicator of the overall situation of government finances. It is usually expressed as a percentage of GDP.

In the fourth quarter of 2017, the seasonally adjusted general government deficit to GDP ratio stood at- 0.6 % in the euro area (EA-19), stable compared with the third quarter of 2017. In the EU-28, the deficit to GDP ratio also stood at -0.6 %, a decrease compared with -0.7 % in the previous quarter.

Due to the economic and financial crisis, which started in 2008, EU government's deficits steadily deteriorated and reached a record level of -7.0 % of GDP (seasonally adjusted) in the third quarter of 2010. The beginning of the consolidation of public finances which can be observed from the fourth quarter of 2010 onwards is due to a reduction in government expenditure not only in terms of GDP, but also in absolute terms as well as continued growth in absolute revenue (seasonally adjusted absolute numbers), which outpaced the growth in GDP. From the first quarter of 2011 onwards, the seasonally adjusted general government deficit no longer exceeded 5% of GDP. However, from the third quarter of 2011 onwards, general government total expenditure resumed growth when measured in absolute terms. From the fourth quarter of 2014 onwards, the seasonally adjusted general government deficit remained below 3% in the euro area and the EU as a whole.

In the two most recent quarters, marked decreases in the deficit are driven by reductions in total expenditure as a percentage to GDP and slight increases in total revenue as a percentage of GDP. In absolute terms, seasonally adjusted total expenditure remained stable in the EU and euro area, while seasonally total revenue continued to grow slightly exceeding the growth of nominal GDP. Particularly in the third quarter of 2017, decreases in the deficit or increases in the surplus were observed in twenty-one out of twenty-eight Member States.

Seasonally adjusted general government deficit

It should be noted that annualised seasonally adjusted data is not in general equal to annualised non-adjusted data. When using annualised figures, it is more appropriate to use non-seasonally adjusted data. Using seasonally adjusted data is on the contrary more appropriate when looking at quarter-on-quarter growth rates.

For Belgium, the seasonally adjusted deficit increased in the third quarter of 2016, largely due to a combination of effects in total revenue - while capital taxes in 2015 were boosted by some temporary changes, they are declining in quarters of 2016 along with tax on income and wealth. However, increasing revenue was observed for indirect taxes and fee (motorway tolls.).

The large deficit for Slovenia in the fourth quarter of 2013 is mainly caused by capital injections to support financial institutions. This is also the reason for the relatively large deficit in the first quarter of 2013 and the fourth quarter of 2014. In addition to this, there are one-off effects in the third and fourth quarters of 2013 due to court decisions. In contrast to this, the third quarter of 2013 is positively influenced by dividends from the National Central Bank.

For Greece, the quarterly government surplus (non-seasonally adjusted) in 2016Q3 is positively influenced by a general increase in tax revenue, but also a one-off effect due to an early payment deadline for a tax on property. Positive effects of tax revenue continued in 2016Q4. The repayment of some arrears in the second half of 2016 is neutral on the deficit, as expenditure had been accrued previously. In 2015Q4, the deficit is strongly influenced by capital transfers to financial corporations.

For Hungary, the relatively large seasonally adjusted deficit in 2016Q4 is caused by large capital transfers to other sectors, notably in the context of co-financing payments for EU funds.

For Austria, the large deficit in the fourth quarter of 2014 is due largely to a capital injection treated as capital transfer to implement the HETA defeasance structure, while the relatively low deficit in the fourth quarter of 2013 is due to an auction of mobile phone licences. The comparatively large deficit in the third quarter of 2015 is also due to capital injections treated as capital transfers in the context of HETA.

The decrease in the seasonally adjusted deficit in the third quarter of 2016 for Finland is to a large part due to increases in tax revenue.

For the United Kingdom, the deficit of the second to fourth quarters of 2016 is positively influenced by dividends from the central bank (Bank of England Asset Purchase Facility). This is also the case for several quarters since the first quarter of 2012.

For Malta, total expenditure in the first quarter of 2015 is positively influenced by a capital transfer to a public corporation. This negatively influences the deficit of the first quarter of 2015.

For Portugal, the large deficit in the fourth quarter of 2015 is explained by support to financial corporations. The large seasonally adjusted deficit in the first quarter of 2017 is explained by a one-off effect - a capital transfer increasing expenditure / deficit towards a financial corporation (recapitalisation of Caixa Geral de Depósitos (CGD)).

For Portugal, the decrease in the deficit in the fourth quarter of 2016 is influenced by one-off capital revenue. This is also the case for Ireland in 2016Q2.

For Iceland, the large reported surplus in the first quarter of 2016 is due to one-off stability contributions paid by the failed banks.

For Italy, the deficit (non-seasonally adjusted) is influenced negatively by operations connected to two bank liquidations in the second quarter of 2017.

For the EU and euro area as a whole, the reductions in the deficit in the fourth quarter of 2016 and the first quarter of 2017 are driven by increases in tax revenue and stable total expenditure.

On Eurobase, seasonally adjusted and calendar day adjusted total revenue and total expenditure data of Member States and EFTA countries, which provide seasonally adjusted and calendar day adjusted data for total revenue, total expenditure and net lending (+)/ net borrowing (-) in addition to the non-seasonally adjusted data, is presented in full detail. This data is provided on a voluntary basis by the National Statistical Institutes.

Figure 4: EA-19 net lending (+)/ net borrowing (-), seasonally and non-adjusted adjusted data, % of GDP and billion euro
Source: Eurostat (gov_10q_ggnfa)


Figure 5: EU-28 components of general government total revenue, billion euro
Source: Eurostat (gov_10q_ggnfa)


Figure 6: EU-28 components of general government total expenditure, billion euro
Source: Eurostat (gov_10q_ggnfa)


Quarterly financial accounts for general government

Financial transactions - assets, liabilities and net financial transactions

The government financial accounts notably allow an analysis of how governments finance their deficits or invest their surpluses. They include data on financial transactions (net acquisition of financial assets and the net incurrence of financial liabilities) and balance sheet items (stocks of financial assets and liabilities outstanding at the end of each quarter) for general government and its sub-sectors. Variations in stocks are explained both by the transactions and by other factors such as holding gains and losses and other changes in volume. The aim of this section is to present the main characteristics of the general government financial accounts.

The economic and financial crisis led to significant increases in the fluctuations of net incurrence of liabilities and net acquisition of financial assets.

From the fourth quarter of 2008 onwards, the fluctuation of transactions in both assets and liabilities has increased sharply. The gap between the volume of transactions in assets and liabilities has widened sharply, giving rise to increasing negative figures in net financial transactions (B.9f), which is interpreted as the government deficit/ surplus derived from financial accounts. The increase and peaks in transactions in financial assets can be explained by governments having acquired assets to support financial institutions.

Net financial transactions continued to deteriorate steadily from the second quarter of 2008 to the third quarter of 2009. From the fourth quarter of 2010 onwards a decrease is visible.

Figure 7: EU-28 net financial transactions, transactions in assets and liabilities, billion euro
Source: Eurostat (gov_10q_ggfa)


Figure 8: EA-19 net financial transactions, transactions in assets and liabilities, billion euro
Source: Eurostat (gov_10q_ggfa)


Government financial balance sheet

At the level of the EU-28 and EA-19, a significant rise in the stocks of liabilities has been observed since the third quarter of 2008, together with an increase in assets which was less pronounced. The rise in the stock of liabilities is mainly due to debt securities, which are by far the most important financial instrument on the government liability side. The stock of loan liabilities also increased substantially. The remainder of financial liabilities is mainly 'other accounts, payable'.

Figure 9: EU-28 net financial worth, stock of assets and liabilities, billion euro and % of GDP
Source: Eurostat (gov_10q_ggfa)


Figure 10: EA-19 net financial worth, stock of assets and liabilities, billion euro and % of GDP
Source: Eurostat (gov_10q_ggfa)

The stock of financial assets is mainly held in equity and investment fund shares (for example public corporations not classified in general government), with other accounts receivable, currency and deposits (these exhibit a strong seasonality), loans and debt securities also making up important parts. Loans increased substantially during the financial crisis.

Figure 11: EU-28 stock of assets by financial instrument, % of GDP
Source: Eurostat (gov_10q_ggfa)


Figure 12: EA-19 stock of assets by financial instrument, % of GDP
Source: Eurostat (gov_10q_ggfa)

The difference between the stock of financial assets and liabilities is the balancing item net financial worth.

Figure 13: Evolution of net financial worth by country, % of GDP
Source: Eurostat (gov_10q_ggfa)

Compared to the fourth quarter of 2016, the fourth quarter of 2017 shows a marked improvement in the balancing item net financial worth for the EU-28. In the fourth quarter of 2017, net financial worth stood at -63.1% of GDP, while in the fourth quarter of 2016, net financial worth stood at -66.1% of GDP. The stock of net financial assets remained unchanged at 38.2% of GDP, while the stock of liabilities decreased from 104.3% of GDP to 101.3% of GDP. The stock of financial assets and liabilities changes due to financial transactions as well as due to 'other flows' such as revaluations.

Figure 14: EU-28 stock of liabilities by financial instrument, % of GDP
Source: Eurostat (gov_10q_ggfa)


Figure 15: EA-19 stock of liabilities by financial instrument, % of GDP
Source: Eurostat (gov_10q_ggfa)


Quarterly gross debt for general government

At the end of the fourth quarter of 2017, the government debt to GDP ratio in the euro area (EA-19) stood at 86.7%, compared with 88.1% at the end of the third quarter of 2017. In the EU-28, the ratio also decreased, from 82.4% to 81.6%. Compared with the fourth quarter of 2016, the government debt to GDP ratio fell in both the euro area (from 89.0% to 86.7%) and the EU-28 (from 83.3% to 81.6%).

Compared with the third quarter of 2017, seven Member States registered an increase in their debt to GDP ratio at the end of the fourth quarter of 2017 and twenty one a decrease. The highest increases in the ratio were recorded in Latvia (+1.9 percentage points-pp), Sweden (+1.8 pp), the United Kingdom (+1.5pp) and Greece (+1.2pp). The largest decreases were recorded in Cyprus (-5.0 pp), Slovenia and Portugal (both -4.9pp), Ireland (-4.0pp) and Belgium (-3.8 pp).

Compared with the fourth quarter of 2016, two Member States registered an increase in their debt to GDP ratio at the end of the fourth quarter of 2017, twenty six a decrease. Increases in the ratio were recorded in Luxembourg (+2.2 pp) and France (+0.4 pp), while the largest decreases were recorded in Cyprus (-9.1 pp), Malta (-5.4 pp), Austria (-5.1 pp), the Netherlands (-5.0 pp), Slovenia and Ireland (both -4.9 pp), Portugal (-4.2 pp) and Germany (-4.1 pp).

The decrease of debt in Greece in the first quarter of 2015 is primarily due to the repayment of a loan from EFSF to the HFSF, representing unused funds for the recapitalisation of Greek financial institutions as well as repayments of loans granted by the IMF. The increase in the second quarter of 2016 is influenced by ESM disbursements.

The highest ratios of government debt to GDP at the end of the fourth quarter of 2017 were recorded in Greece (178.6%), Italy (131.8%) and Portugal (125.7%), and the lowest in Estonia (9.0%), Luxembourg (23.0%) and Bulgaria (25.4%).

Figure 16: General government gross debt, % of GDP, 2017Q2
Source: Eurostat (gov_10q_ggdebt)
Figure 17: Change in general government gross debt, percentage points of GDP, 2017Q4compared to 2017Q3
Source: Eurostat (gov_10q_ggdebt)
Figure 18: Change in general government gross debt, percentage points of GDP, 2017Q4 compared to 2016Q4
Source: Eurostat (gov_10q_ggdebt)

Evolution of deficit and debt

Figure 19 shows some of the most important links between the quarterly deficit and the quarterly debt for the euro area. While in general, government gross debt will increase in the presence of a government deficit, this is not necessarily the case in the short-term. It can be seen, that a strong co-movement of net acquisition of financial assets exists with the evolution of quarterly debt. Incurrence of liabilities not in the quarterly government debt (mainly 'other accounts, payable') plays a smaller role.

Figure 19: EA-19 evolution of general government deficit and debt, 2017Q4, percentage of GDP
Source: Eurostat (gov_10q_ggdebt)

At the level of the EU-28, the evolution of general government gross debt during 2016 is strongly influenced by the fluctuation of the British Pound Sterling against the euro. The majority of UK debt is in national currency, which depreciated against the euro in the first three quarters of 2016 and appreciated in the fourth quarter.

In the third quarter of 2017, the link between the (inverted non-seasonally adjusted) deficit and the gross debt is mainly explained by transactions - by a net incurrence of financial liabilities not part of gross debt (0.8% of quarterly GDP) as well as by as well as by a relatively low deficit (-0.6% of quarterly GDP).

Data sources

For the following countries, the estimates are produced by the respective National Statistical Institute, which all follow the “ESS guidelines on seasonal adjustment”:

Belgium: The seasonally adjusted series are computed following an indirect approach. The components of the revenue and of the expenditure of the General Government are seasonally adjusted by means of "Tramo-Seats", taking into account the presence of possible outliers and calendar effects. The model of each component (>20) has been individually validated (no automatic modelling). The absence of residual seasonality after aggregation has been checked. The data are benchmarked on annual totals of the non-adjusted series. The annual benchmarking is computed on each component by means of a multiplicative Denton procedure.

Bulgaria: Tramo-Seats on Demetra +. Total expenditure: no trading days effects, no Easter effect, log-transformation, ARIMA model [(1,0,0)(0,1,0)], outlier: AO[2007-IV], TC[2008-IV], AO[2009-I], LS[2016-I]. Total revenue:, no trading days effects, no Easter effect, ARIMA model [(0,1,1)(0,1,1)], outlier: LS[2007-I], AO[2015-IV], AO[2017-III].

Czech Republic: Tramo-Seats on Demetra +. Total expenditure: No trading days effects, no Easter effect, ARIMA model [(0,1,1)(0,1,1)], outliers: AO[2003-I], AO[2003-III], AO[2012-IV], TC[2001-IV]. Total revenue: No trading days effects, no Easter effect, ARIMA model [(1,1,0)(0,1,1)], outliers: AO[2003-I], TC[2007-III], AO[2008-III].

Denmark: X12-ARIMA. Total expenditure: Log-transformation, no trading days effects, no Easter effect, ARIMA model [(1,1,0)(1,0,0)], outliers: AO[2005-IV], TC[2011-I]. Total revenue: Log-transformation, trading days effects, no Easter effect, ARIMA model [(0,1,0)(0,1,1)], outliers: TC[2009-II], AO[2008-II], TC[2009-II], LS[2015-I], [2004-I].

'Germany: X-12-ARIMA. Total expenditure: Log-transformation, no trading day effects, ARIMA model [(0,1,1) (0,1,1)], outliers AO [1995-I, 1995-III, 2000-III, 2010-III]. Total revenue: Log-transformation, no trading day effects, ARIMA model [(0,1,0) (0,1,1)], no outliers.

Estonia: Tramo-Seats on Demetra +. The seasonal adjustment of all time series is done with TRAMO/SEATS using JDemetra+ software. For TE and TR no calendar adjustment has been added as it does not have a notable impact on the results. According to ESS guidelines there is also no temporal consistency forced on the time series in order to provide a more purely seasonally adjusted time series for users.

France: Seasonally adjusted data is transmitted. Working day adjustment is also done when relevant. An indirect method is used. Seasonal adjustment is done using X-12-ARIMA. For more information, you can read INSEE's methodology (starting on page 21) at the following link (the document is available in both English and French): http://www.insee.fr/en/indicateurs/cnat_trim/Pub_Meth/en_Insee%20M%C3%A9thodes%20n%C2%B0126.pdf.

Latvia: Tramo-Seats on JDemetra +. Total expenditure: Log-transformation, ARIMA model [(0,1,1)(0,1,1)], outliers: LS[2006-IV], LS[2009-III]. Total revenue: Log-transformation, ARIMA model [(0,1,0)(0,1,1)], outlier: AO[2006-IV].

Lithuania: Tramo-Seats on Demetra+. Total expenditure: Log-transformation, no Easter effect, ARIMA[(0,1,1)(0,1,1)], outlier AO[2011-IV]. Total revenue: Log-transpormation, no Easter effect, ARIMA[(0,1,1)(0,1,1)], no outliers.

Luxembourg: All series are seasonally and calendar adjusted with automatic outlier detection and correction. No benchmarking or other adjustments are made. The method used is non-parametric X13 RSA5c with the Luxembourgish calendar. The software used is JDemetra+ (v2.1.0).

Hungary: JDemetra+ TramoSeats method. Hungarian specific calendar is used. Working day, Easter and leap year effects are tested.

Malta: Tramo Seats on Demetra+, Total expenditure: Tramo-Seats on JDemetra+ 2.1.0, Series has been log-transformed, No trading days effects, No Easter effects, ARIMA model [(0,0,0)(0,1,0)], 1 pre-specified outlier: AO(IV-2003). Total revenue: Tramo-Seats on Demetra+, Series has been log-transformed, No trading days effects, No Easter effects, ARIMA model [(0,1,1)(0,1,0)], 1 pre-specified outlier: LS(IV-2008). Final Consumption Expenditure: Tramo-Seats on Demetra+, Series has been log-transformed, no tradings effects, No Easter effects, Arima[(0,1,1)(0,1,0)], Pre-specified outliers: AO(IV-2001), LS(IV-2007) & LS(III-2016). GFCF: Tramo-Seats on Demetra+, Series has been log-transformed, no trading days effects, No Easter effects, GFCF ('99Q1-'08Q4) Model: Arima [(0,1,1)(0,1,0)], GFCF('09Q1-'17Q2): Arima[(0,1,1)(0,1,0)], Pre-specified outliers, GFCF ('99Q1-'08Q4): AO(II-2005) & AO(II-2007), GFCF('09Q1-'17Q4): AO(II-2016)

The Netherlands: More information can be found on the website of the Dutch Central Bureau of Statistics: http://statline.cbs.nl/Statweb/publication/?VW=T&DM=SLEN&PA=82560ENG&D1=0,5,11,14-16,32-34&D2=4-7,9-12,14-17,19-22,24-27,29-32,34-37,39-42,44-47,49-52,54-57,59-62,64-67,69-72,74-77,79-82,84-85&HD=151130-1127&LA=EN&HDR=T&STB=G1 .

Austria: Tramo-Seats on Demetra +. Total expenditure: Log-transformation, no trading days effects, no Easter effect, ARIMA model [(0,1,1)(0,1,1)], outliers AO[2009-IV], specific pre-treatment: [2004-II], [2004-IV], [2009-IV], [2014-IV], [2015-III]. Total revenue: Log-transformation, no trading days effects, no Easter effect, ARIMA model [(0,0,0)(0,1,1)], outlier: LS[2009-II], LS[2016-I].

Poland: Tramo-Seats on JDemetra +. Direct method used. Concurrent adjustment for Q1 each year, current adjustment Q2, Q3, Q4 (model revised once a year). Calendar effects adjustment used. Working days with leap year effect (2 regressors) and Easter effect tested for each series - only significant effects used in final specification. Automatic identification of ARIMA models. Total expenditure: P.2 - log transformation; no calendar effect, ARIMA model [(0,0,0)(1,1,0)], TC(2010-III); P.5 - log transformation; no calendar effect, ARIMA model [(0,1,1)(0,1,1)], outliers: LS[2001-I] AO[2016-I]; D.1 - log transformation; no calendar effect, ARIMA model [(2,1,0)(0,1,1)], AO(2013-IV) LS(2008-II); D.6M - log transformation; no calendar effect, ARIMA model [(2,1,0)(0,1,1)], outliers: AO(2007-IV); D.4 - log transformation; no calendar effect, ARIMA model [(0,0,0)(0,1,1)], outliers: LS(2013-III), LS(2008-IV); P.29+D.3+… no seasonality detected; Total revenue: D.2 - log transformation; no calendar effect, ARIMA model [(0,1,1)(0,1,1)], outliers:AO(2004-II), TC(2009-I); D.4 – no-log transformation; no calendar effect, ARIMA model [(0,0,0)(1,0,0)], outliers:TC(2007-III), TC(2012-II); D.5 - log transformation; no calendar effect, ARIMA model [(1,0,0)(0,1,0)]; D.61 - log transformation; no calendar effect, ARIMA model [(0,1,1)(0,1,1)], outliers:TC(2008-IV), AO(2007-IV), AO(2011-III); P.1+D.7+… no seasonality detected.

Portugal: X13-ARIMA on Demetra+. A manual pre-treatment is performed by identifying and deducting one-off measures. Additional pre-treatment is applied for outlier detection and correction. The seasonal adjustment is applied to total revenue, expenditure except compensation of employees and compensation of employees. Total revenue: Log-transformation, no trading day effects; no Easter effect; ARIMA model [(0,1,1)(0,1,1)]; outliers: AO[2003-IV], AO[2009-II], SO III [1999 – 2008] (user defined variable). Total expenditure (except compensation of employees): Log-transformation, no trading day effects; no Easter effect; ARIMA model [(1,0,1)(0,1,0)]; outliers: AO (IV-2002), LS (II-2012) Compensation of employees: Log-transformation, no trading day effects; no Easter effect; ARIMA model [(1,1,0)(0,1,1)]; outliers: TC (III-2005), LS (I-2011), LS (I-2012), TC (I-2013), AO (III-2014), SO II [2012 – 2013] (user defined variable), SO IV [2012 – 2016] (user defined variable).

Romania: Tramoseats on Demetra+. P.51g have been split in two series: First one is from I-1995 to II-2006 and the second from III-2006 to I-2017. The both series has been log-transformed with no trading days effects and no Easter effects. The [I-1995,II-2006] series has detected the Arima model [(1,0,0)(0,1,0)] and 3 outliers: AO(III-1995), LS(I-2000),AO(III-1999). The [III-2006,I-2017) series has detected the Arima model [(1,0,0)(0,1,0)] and no outliers found. Total expenditure series has been log-transformed with no trading days effects and no Easter effect, Arima model [(0,1,1,),(0,1,1)] and 8 outliers: LS(IV-2006), LS(IV-2007), AO(III-1885),AO(IV-2009),AO(IV-2010),LS(II-1995), TC(IV-1995), LS(II-1997). Total revenue series has been log-transformed with no trading days effects and no Easter effect, Arima model [(0,1,1,),(0,1,1)] and 7 outliers: LS(I-2016), LS(IV-2016), LS(II-2003), AO(III-2013), AO(II-1999), LS(IV-1995), LS(II-1997). B.9 is derived indirectly by the difference between seasonally adjusted series of total revenue and total expenditure.

Slovenia: Tramo-Seats on JDemetra +. Total revenue: Log transformation, no trading days effects, no Easter effect, pre-specified outliers LS Q1/2009, AO Q1/2012, detected outlier LS Q1/2017, ARIMA(0,1,1)(0,1,1). Total expenditure: Log transformation, no trading days effects, no Easter effect, pre-specified outliers AO Q4/2014, AO Q1/2013, AO Q4/2013, AO Q1/2001, TC Q1/2011, ARIMA(0,1,1)(0,1,1). Gross fixed capital formation: Log transformation, trading days effects (1 variable), holidays effect, no Easter effect, pre-specified outliers LS Q1/2011, LS Q1/2016, LS Q1/2005, AO Q2/2016, LS Q1/2014, detected outlier AO Q3/2017, ARIMA (0,1,1)(0,1,1). Final consumption expenditure (P3): Log transformation, no trading days effects, no Easter effect, pre-specified outlier LS Q1/2008, ARIMA (0,1,0) (0,1,1)

Slovakia: Tramo-Seats on JDemetra +. Total expenditure: Log-transformation, no trading days effects, no Easter effect, ARIMA model [(0,1,1)(0,1,1)], outliers: LS[2000-IV], AO[2015-IV], AO[2002-IV]. Total revenue: Log-transformation, no trading days effects, no Easter effect, ARIMA model [(0,1,1)(0,1,1)], outlier: LS[2001-III], AO[2015-IV].

Finland: Tramo-Seats on Demetra 2.2. Pre-treatment is done if necessary, for example for outlier detection and correction. Total revenue and expenditure are estimated indirectly on the basis of their components and on subsector data.

Sweden: Tramo-Seats on Demetra +. Total expenditure: Log-transformation, no trading days effects, no Easter effect, ARIMA model [(0,1,2)(0,1,1)], outlier AO[2010-IV], AO[1998-III]. Total revenue: Log-transformation, no trading days effects, no Easter effect, ARIMA model [(0,1,0)(0,1,1)], AO[2014-IV].

United Kingdom: Adjustment using X-11 algorithm in X-13ARIMA-SEATS. Net borrowing: log transformation, no trading day effects, no Easter effect, ARIMA model [(0,1,1)(0,1,1)], outliers: AO[2008Q3], AO[2012-II], seasonal moving average: 3x3, trend moving average: 5. Total expenditure: No trading day effects, no Easter effects, multiplicative, ARIMA model[(0,1,1)(0,1,1)], outliers: AO[2008Q3], seasonal moving average: 3x5, trend moving average: 5. Total revenue: no trading day effects, no Easter effects, additive, ARIMA model[(0,1,1)(0,1,1)], outliers: LS[2009Q1], AO[2012Q2], seasonal moving average: 3x5, trend moving average: 5. For the purpose of calculation the EU aggregates, B.9 is derived indirectly. Annualised seasonally adjusted data is benchmarked on the annualised non-adjusted data.

Switzerland: The data reported is trend-cycle data. A Denton-Cholette method is used to temporally disaggregate annual data. The quarterly data is extrapolated using smoothed indicators.

Please refer to the country notes on EMIS for more important information at country level. Some important notes for recent quarters are replicated below.

Cyprus: FISIM is negative due to loans from ESM.

Gross domestic product

Throughout this publication, gross domestic product (GDP) at current prices (nominal) is used, either using the non-seasonally adjusted or the seasonally and calendar adjusted forms as appropriate.

Context

Quarterly accounts of general government

Eurostat releases quarterly flow and stock data for the general government sector, using an integrated structure which combines the data from quarterly non-financial accounts for general government (QNFAGG), quarterly financial accounts for general government (QFAGG) and quarterly government debt (QGD). An integrated publication combining data from all three tables is released quarterly on the dedicated Government Finance Statistics (GFS) section of the Eurostat web site and on the dedicated Statistics Explained page Integrated government finance statistics presentation.

Data is transmitted according to the ESA2010 transmission programme for QFAGG and QDEBT. QNFAGG data is transmitted under gentlemen's agreement.

ESA2010

Eurostat publishes quarterly government finance figures based on the European System of Accounts 2010 (ESA 2010) methodology. The data in this Release include revisions due both to the implementation of ESA2010 and to the incorporation of other statistical adjustments.

Methodological changes in ESA2010 include the treatment of assets of pension schemes transferred to general government as a partial compensation for taking over pension obligations. While the transfer of assets has been treated as a non-financial transaction under ESA95, under ESA2010 such lump sum transfers from (public) corporations are treated as financial, with no impact on general government net lending (+)/ net borrowing (-). Furthermore, the difference between the value of assets received by government and the value of the pension obligations has to be treated as a capital transfer from government to the concerned corporation. For more information, please see the Eurostat decision on the issue: here. This had a major impact on the quarterly data of the countries concerned.

General government

QNFAGG and QFAGG and QDEBT statistics cover data for general government as defined in ESA2010, paragraph 2.111.

Seasonal adjustment of selected data series

Quarterly government finance statistics are reported to Eurostat in the form of non-seasonally adjusted (raw) figures. However, a certain number of the reported series contain seasonal patterns (explained by the link with the seasonality of economic activity and by the budgetary planning and accounting practices of national governments), which make it difficult to carry out a direct meaningful cross-country and time series analysis using non-adjusted data. The same is true for GDP, which reflects the seasonal pattern of all economic activities in the economy.

To overcome this difficulty and thus to gain a better understanding of trends in addition to the non-seasonally adjusted data, seasonally adjusted data is presented for the EU-28 and EA-19 in this article. The seasonal adjustment aims to remove the seasonality linked to this quarterly data.

It should be noted that annualised seasonally adjusted data is not in general equal to annualised non-adjusted data. When using annualised figures, it is more appropriate to use non-seasonally adjusted data. Using seasonally adjusted data is more appropriate when looking at quarter-on-quarter growth rates.

The seasonal adjustment for total revenue and total expenditure is done using an indirect procedure (at country level) using Tramo-Seats on Demetra+). Where available, National Statistical Institutes own estimates are used as input for the aggregates, which are supplied to Eurostat on a gentlemen's agreement basis. Some country level estimates as well as data for the EU aggregates are published on Eurobase. These estimates are supplemented by Eurostat's own estimates for those countries, which do not yet supply their own estimate. This data is labelled confidential and not published.

Net lending (+)/ net borrowing (-) is derived indirectly from the accounting identity: Net lending (+)/ net borrowing (-)= total revenue - total expenditure.

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Main tables

Annual government finance statistics (t_gov_10a)
Government deficit and debt (t_gov_10dd)
Quarterly government finance statistics (t_gov_10q)

Database

Annual government finance statistics (gov_10a)
Government deficit and debt (gov_10dd)
Quarterly government finance statistics (gov_10q)

Dedicated section