Government deficit and debt (gov_10dd)

Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Eurostat, the statistical office of the European Union


Eurostat metadata
Reference metadata
1. Contact
2. Metadata update
3. Statistical presentation
4. Unit of measure
5. Reference Period
6. Institutional Mandate
7. Confidentiality
8. Release policy
9. Frequency of dissemination
10. Accessibility and clarity
11. Quality management
12. Relevance
13. Accuracy
14. Timeliness and punctuality
15. Coherence and comparability
16. Cost and Burden
17. Data revision
18. Statistical processing
19. Comment
Related Metadata
Annexes (including footnotes)



For any question on data and metadata, please contact: EUROPEAN STATISTICAL DATA SUPPORT

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1. Contact Top
1.1. Contact organisation

Eurostat, the statistical office of the European Union

1.2. Contact organisation unit

Unit D1: Excessive deficit procedure, methodology and GFS

1.5. Contact mail address

L-2920 Luxembourg LUXEMBOURG


2. Metadata update Top
2.1. Metadata last certified 22/10/2018
2.2. Metadata last posted 22/10/2018
2.3. Metadata last update 22/10/2018


3. Statistical presentation Top
3.1. Data description

Government Finance Statistics (GFS) form the basis for fiscal monitoring in Europe, most notably for the statistics related to the Excessive Deficit Procedure (EDP). The EDP is established in the Treaty on the Functioning of the European Union (TFEU) and specified in the Stability and Growth Pact. The Member States report data related to the EDP to the Commission (Eurostat) which, in turn, is responsible for providing the data to the Council.

European GFS, including the statistics for the EDP, are produced in accordance with Regulation (EU) 549/2013 of the European Parliament and of the Council on the European system of national and regional accounts (ESA 2010), the EU manual for national accounts, which in September 2014 replaced the previous version of the national accounting framework ESA 95. It is supplemented by further interpretation and guidance from Eurostat, in particular the Manual on Government Deficit and Debt.

Council Regulation (EC) No 479/2009 as amended requires that Member States report government deficit/surplus (hereinafter deficit) and debt data related to the EDP twice per year: before 1 April and 1 October for the preceding four calendar years and a forecast for the current year. The data are reported in harmonised tables. These tables are designed specifically to provide a consistent framework, with a link to national budgetary aggregates and between the deficit and changes in the debt. They should be fully consistent with GFS data delivered to Eurostat under the ESA 2010 transmission programme.

The EDP notification tables contain for general government and its subsectors:

  • Table 1: Summary table on deficit and debt, including auxiliary indicators (Gross Fixed Capital Formation, Interest and Gross Domestic Product - GDP);
  • Tables 2A - 2D: Transition from the working balance to the deficit/surplus for general government subsectors;
  • Tables 3A - 3E: Transition from the deficit/surplus to the change in debt for general government and its subsectors;
  • Table 4: Supplementary data.

The data are presented in Eurostat's Statistics Database in national currency, euro/ECU, and percentage of GDP.

3.2. Classification system

The classification system is defined in ESA 2010: classification of institutional sectors and classification of transactions, other flows and balance sheet items (assets/liabilities).

3.3. Coverage - sector

Data covers the consolidated general government sector (S.13) and its subsectors.

3.4. Statistical concepts and definitions

The concepts for EDP statistics are explained in Council Regulation (EC) No 479/2009, as amended and Regulation (EU) No 549/2013 of the European Parliament and of the Council (ESA 2010) and subsequent legal amendments, supplemented by further interpretation and guidance from Eurostat, in particular the Manual on Government Deficit and Debt.

The government deficit/surplus is the net borrowing/net lending (B.9) of general government, as defined in the ESA 2010. It is the difference between the revenue and the expenditure of the general government sector. The government debt is defined as the total consolidated gross debt at nominal value at the end of the year in the following categories of government liabilities (as defined in ESA 2010): currency and deposits (AF.2), debt securities (AF.3) and loans (AF.4).

At the national level, data for the general government sector are consolidated between subsectors. The debt of the euro area and EU aggregates is consolidated by removal of the loans that Member States have granted to other Member States.

The working balance is the most often used concept and measure of the country's budget deficit/surplus as it generally appears in public accounts and budgetary presentations. In other words, for example, for central government, it should normally correspond to the budgetary outcome voted for by the parliament.

The deficit and debt data are reported by subsectors of general government: central government (S.1311), state government (S.1312), local government (S.1313) and social security funds (S.1314).

The transition from the working balance to the deficit/surplus (EDP tables 2A - 2D) is explained by the following items, based on an example for central government:

  • financial transactions included in the working balance;
  • non-financial transactions not included in the working balance;
  • difference between interest paid and accrued (D.41);
  • other accounts receivable / other accounts payable;
  • working balance of entities not part of central government;
  • net borrowing or net lending of other central government bodies;
  • other adjustments.

The transition from the deficit/surplus to the change in debt is explained by the following items:

  • net acquisition of financial assets: Currency and deposits (F.2), Debt securities (F.3), Loans (F.4), Equity and investment fund shares/units (F.5), Financial derivatives (F.71), Other accounts receivable (F.8) and Other financial assets (F.1 and F.6);
  • net incurrence of liabilities in financial derivatives (F.71);
    • net incurrence (-) of other accounts payable (F.8);
    • net incurrence (-) of other liabilities (F.1, F.5, F.6 and F.72);
    • issuances above/below nominal value;
    • difference between interest (D.41) accrued and paid;
    • redemptions/repurchase of debt above/below nominal value;
    • appreciation/depreciation of foreign-currency debt;
    • changes in sector classification (K.61);
    • other volume changes in financial liabilities (K.3, K.4, K.5);
    • difference between capital and financial accounts (B.9-B.9f) and other statistical discrepancies.
3.5. Statistical unit

The statistical unit is the institutional unit, as defined in ESA 2010. The institutional units are grouped into the general government sector and its subsectors.

3.6. Statistical population

General government sector and its subsectors.

3.7. Reference area
  • EU and euro area (EA) aggregates;
  • EU Member States
3.8. Coverage - Time

Data for most of EU Member States are available from 1995. Time series are shorter for some countries. The provision of historical EDP data (currently 1995-2013) is on a voluntary basis.

3.9. Base period

Not applicable.


4. Unit of measure Top

National currency, euro/ECU, and percentage of GDP.


5. Reference Period Top

The reference period is the calendar year. Stocks (such as debt) are as at the end of the calendar year.


6. Institutional Mandate Top
6.1. Institutional Mandate - legal acts and other agreements

National accounts are compiled in accordance with Regulation (EU) 549/2013 of the European Parliament and of the Council on the European system of national and regional accounts (ESA 2010) The new national accounting framework ESA 2010 replaced in September 2014 the previous framework ESA 95.

For EDP statistics, the legal basis is the Council Regulation (EC) No 479/2009 as amended on the application of the Protocol on the Excessive Deficit Procedure annexed to the TFEU.

6.2. Institutional Mandate - data sharing

Data may be circulated within the European Commission ahead of release.


7. Confidentiality Top
7.1. Confidentiality - policy

Regulation (EC) No 223/2009 of the European Parliament and of the Council on European statistics (recital 24 and Article 20(4) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society.

7.2. Confidentiality - data treatment

Data are treated as confidential after reporting, during the validation process, until the news release.


8. Release policy Top
8.1. Release calendar

The EDP statistics of the euro area, the EU and the Member States are published in Eurostat's news release and the Statistics Database twice per year (April and October). The precise date of publication is presented in Eurostat's release calendar.

8.2. Release calendar access

The dissemination calendar is available on Eurostat's website.

8.3. Release policy - user access

Data are disseminated simultaneously to all interested parties through a database update and on Eurostat's website.

Data for EU countries: Data may be circulated within the European Institutions, especially the European Commission and the European Council ahead of release. National governments may release their national data beforehand, though the data remain subject to verification by Eurostat.


9. Frequency of dissemination Top

Bi-annual.


10. Accessibility and clarity Top
10.1. Dissemination format - News release

News releases on-line.

10.2. Dissemination format - Publications

All publications on government finance statistics are available on the dedicated section (GFS) of Eurostat's website.

10.3. Dissemination format - online database

Please consult free data on GFS Main Tables and GFS Database.

10.4. Dissemination format - microdata access

Not applicable.

10.5. Dissemination format - other

Comments may be made by the European Commission or EU Member States on the occasion of the release of EU data. See also: http://ec.europa.eu/eurostat

For the years not covered by the latest EDP notification (which provides data back to year t-4), the series submitted within the EDP tables may differ from the data in general government main aggregates. In this case, the data in the general government main aggregates domain are normally more updated.

Please consult the news releases for information on the reservations and amendments by Eurostat to the individual countries' data.

10.6. Documentation on methodology

The methodology for EDP statistics is set out in Council Regulation (EC) No 479/2009, as amended and Regulation (EU) No 549/2013 of the European Parliament and of the Council (ESA 2010) and subsequent legal amendments, supplemented by further interpretation and guidance from Eurostat, in particular in the Manual on Government Deficit and Debt.

10.7. Quality management - documentation

See the page Quality reports of the dedicated section (GFS) on Eurostat's website. Also, the page "EDP Inventories" presents descriptions of the sources and methods used for compiling the reported EDP data, as required by Council Regulation (EC) No 479/2009 as amended.


11. Quality management Top
11.1. Quality assurance

Quality of data is assured by adherence to the ESA 2010 and the Manual on Government Deficit and Debt and by the validation of the Member States' data by Eurostat.

11.2. Quality management - assessment

See the page "Quality reports" in the dedicated section (GFS and EDP statistics) on Eurostat's website.


12. Relevance Top
12.1. Relevance - User Needs

Users of the EDP data: the European Commission (for purposes of the Stability and Growth Pact), the Council, the European Parliament, researchers, politicians, etc.

The main purpose of collecting these data is to ensure that high quality data is provided to the main user, the European Commission, to undertake its activities in surveying the Stability and Growth Pact.

12.2. Relevance - User Satisfaction

Eurostat is in constant dialogue with the main users and the national statistical institutes in order to improve the EDP data.

12.3. Completeness

All data required by Council Regulation (EC) No 479/2009, are available.


13. Accuracy Top
13.1. Accuracy - overall

Not available.

13.2. Sampling error

Not available.

13.3. Non-sampling error

Not available.


14. Timeliness and punctuality Top
14.1. Timeliness

Council Regulation 479/2009 requires that Member States report government deficit and debt data related to the EDP twice per year: before 1 April and before 1 October.

14.2. Punctuality

Member States normally meet the deadlines.


15. Coherence and comparability Top
15.1. Comparability - geographical

Data are comparable across Europe, as harmonised European rules (ESA 2010, and Manual on Government Deficit and Debt) are used by all Member States for compiling the EDP data.

15.2. Comparability - over time

Comparability over time is ensured.

15.3. Coherence - cross domain

Council Regulation (EC) No 479/2009 as amended requires consistency of reported EDP data with the GFS data delivered to Eurostat in the ESA 2010 transmission programme. This consistency is verified by Eurostat in the course of validation of the Member States' EDP data.

15.4. Coherence - internal

Consistency is ensured within and between the EDP tables reported by the Member States.


16. Cost and Burden Top

Not available.


17. Data revision Top
17.1. Data revision - policy

Data are revised as necessary, in line with national accounts principles. At the time of each EDP notification Member States can revise years back to t-4 and must inform Eurostat about details of revisions since the previous EDP notification:

  • size of revisions;
  • subsector of general government;
  • what is the type of revisions: revisions to source data, methodological revisions or elimination of possible errors.

Data for earlier years (before t-4) are revised in the database by Eurostat, whenever Member States provide revised data.

17.2. Data revision - practice

Under the Excessive Deficit Procedure (EDP), the data reported before 1 April are preliminary, since revised annual data are notified before 1 October. These revisions may affect all reported years. Further revisions may be necessary due to updated data sources or other reasons.

Major changes in methodology may occur as a result of EU legislation or Eurostat decisions (following a consultation procedure with Member States). To comply with existing EU requirements, major changes in methodology which occur at the national level may be mentioned in Eurostat's news release.


18. Statistical processing Top
18.1. Source data

Data are based on annual national accounts of general government, derived primarily from administrative and other records of general government. Basic data are in national currency.

18.2. Frequency of data collection

Twice per year.

18.3. Data collection

Data are collected primarily from administrative reports, but sometimes also with statistical surveys (especially for enterprises reclassified into general government sector, extra budgetary units and local government units etc.).

18.4. Data validation

Eurostat validates data twice per year during the period of three weeks after the EDP notification by the Member States. The validation process consists of arithmetic and quality checks as well as checks on consistency with ESA 2010 methodology and with the GFS data delivered to Eurostat in the ESA 2010 transmission programme.

18.5. Data compilation

Valuation principles are in accordance with ESA 2010. However, debt is recorded at nominal (face) value. Foreign currency debt is converted into national currency using end-year market exchange rates (though special rules apply to contractual agreements). The debt of the euro area and EU aggregates is consolidated by removal of the loans that Member States have granted for support operations to other Member States.

Data are in principle compiled on accrual basis, according to ESA 2010 rules. For recording of taxes and social contributions, the common principles of ESA 2010 are modified by Commission Regulation (EC) No 995/01 implementing EP and Council Regulation (EC) No 2516/00.

For series transmitted in national currencies other than euro, the data are converted by Eurostat into euro using annual average exchange rates (provided by the European Central Bank – ECB) in the case of general government flows (net borrowing/net lending, gross fixed capital formation etc.). Eurostat converts national currency into euro using end-year exchange rates (provided by the ECB) in the case of general government debt and its breakdown by financial instrument.

Ratios as a percentage of GDP are based on annual GDP data submitted to Eurostat in the EDP notification (for years going back to t-4) and from GDP reporting to Eurostat (for earlier years). GDP is gross domestic product at current market prices, as defined in ESA 2010 (B.1*g).

Euro area and EU aggregates are formed by the aggregation of the country data in euro (ECU), with consolidation where appropriate.

18.6. Adjustment

Please consult the news releases for information on the reservations and amendments by Eurostat to the individual countries' data.


19. Comment Top

For the years not covered by the latest EDP notification (which provides data back to year t-4), the series may differ from the data in general government main aggregates and other tables in the domain annual government finance statistics (gov_10a). In this case the data in the general government main aggregates domain are normally more updated.

Please consult the news releases for information on the reservations and amendments by Eurostat to the individual countries' data.

Country explanatory note regarding EDP tables 3: The UK data show some consolidating stock flow discrepancies for the period 1995 to 1997.

 


Related metadata Top


Annexes Top