Back

Government finance statistics: deposit assets

25/04/2019

© Studio_G / Shutterstock.com
Logo Statistics Explained

Quarterly fluctuation of deposits held by general government

The financial accounts of general government cover transactions in financial assets and liabilities as well as the stock of financial assets and liabilities. Governments hold deposit assets (stocks) such as money in bank accounts and cash reserves to make their daily payments. The holding of such assets is generally costly since the interest revenue received on these assets is generally not large or even negative. Holding excessive deposit assets could lead to higher borrowing needs (increase in debt liabilities) or foregoing opportunities in holding other assets. The deposit assets tend to decline at the end of the fourth quarter of each year.

Time series of currency and deposits held by EU-28 general government

The data source is here.

In some budgetary systems, there are efforts to effect payments due by the end of the year, reducing the balance sheet. With their excess deposits, governments can also decrease their gross debt, for example by (re)purchasing government bonds.

For more information on quarterly government finance statistics, please take a look at the latest Statistics Explained article on this topic, accessible here.

 

To contact us: estat-user-support@ec.europa.eu