National Accounts Classification of Budget 2001

Introduction

1.      The following tables bring together estimates of the consolidated capital and current accounts of General Government which includes the Exchequer, various extra-budgetary funds (e.g. the Social Insurance Fund), various non-commercial semi-state bodies and local Government, classified according to the definitions employed in national income accounting.  The main purpose of the presentation is to provide a basis for relating the income and expenditure of General Government to such national income aggregates as saving, investment and personal income, whereas many other budgetary documents cannot be readily used in this way.  The presentation thus gives a more comprehensive view of fiscal policy than would be possible on the basis of the budgetary accounts alone.

2.      The figures shown for 1999 are based on data supplied by the Central Statistics Office.  Figures for 2000 are provisional and are subject to revision when the Appropriation Accounts and other final accounts become available.  The estimates shown for 2001 are consistent with the Budget Day projections.

3.      Transactions between the various funds and accounts are eliminated so as to show the net flows between the General Government sector and the rest of the economy.  Current transactions of government trading activities are omitted, but estimates of the gross surplus on these activities are included in item 12.

4.      The various definitions employed are similar to those used in Table 21 of the National Income and Expenditure accounts published by the Central Statistics Office.  It should be noted that there are some differences in presentation between Table 21 as published in the National Income and Expenditure and the following tables as some of the headings used in Table 21 have been amalgamated.  Additionally, items 29 (Capital receipts less Financial Transactions) and 37 (Capital expenditure less Financial Transactions) are included to facilitate the calculation of a Net Lending figure - this is also known as the General Government Surplus. 

5.      It should be noted that Net Lending/Borrowing (item 40) varies from the Exchequer Surplus shown in the Exchequer Budgetary accounts.  The reasons for these differences are: 

  • an adjustment, in accordance with ESA conventions, to the National Debt interest charge to exclude changes in the assets of the Capital Services Redemption Account and capital gains or losses on foreign exchange contracts, swaps, etc.; 
  • the exclusion of equity and loan transactions from the General Government Surplus on the basis that such transactions affect the composition but not the level of assets and liabilities.  The proceeds from the sale of shares in Eircom in 1999 and 2000 are treated as a financial transaction under ESA conventions and are not counted as income of the General Government Sector, whereas these receipts are included as Exchequer income; 
  • payments in respect of the prefunding of future pension liabilities do not impact on the General Government Surplus as they are treated as part of the General Government Sector under ESA conventions and transactions within the Sector do not impact on the General Government Surplus.  However, such payments are included as expenditure in the calculation of the Exchequer Surplus; 
  • the treatment of extra-budgetary fund transactions of which the most notable examples are assigning payments from Funds such as the Hepatitis C Trustee Fund to the year in which actual payments are made from the Funds whereas the impact on the budgetary arithmetic occurs in the year in which transfers were made from the Exchequer to the Funds; 
  • the accrual of certain transactions to the period when the underlying economic activity took place.  This includes (i) Departmental and Revenue Commissioners Balances carried from one year to another which are discounted in favour of the underlying transactions, and (ii) an adjustment to tax receipts to accrue the receipts to the period when the underlying economic activity giving rise to the tax liability took place; and 
  • including the full impact of local government whereas the Exchequer Surplus only includes transfers between local government and the Exchequer.

The differences between the Exchequer Surplus and Net Lending (the General Government Surplus) is shown in tabular form in Table 6 of the Budget 2001 Statistics and Tables.

NATIONAL ACCOUNTS CLASSIFICATION OF GENERAL GOVERNMENT
Note: Rounding may affect totals
 
Part I
SUMMARY
  1999 2000 2001
    Provisional Budget
    Outturn Estimate
  £m £m £m
RECEIPTS      
 1. Current (15) 24,151 27,906 30,691
 2. Capital (29) 1,512 1,920 2,450
 3. Total Receipts (1 + 2) 25,663 29,825 33,140
       
EXPENDITURE      
 4. Current (21) 19,878 21,927 24,226
 5. Capital (37) 4,315 4,098 5,014
 6. Total Expenditure (4 + 5) 24,193 26,026 29,240
 7. Net Lending(+)/Borrowing(-) (3 - 6 = 40) 1,470 3,800 3,900

Part II
CURRENT ACCOUNT

  1999 2000 2001
    Provisional Budget
    Outturn Estimate
  £m £m £m
RECEIPTS      
 8. Taxes on income and wealth 9,324 10,520 11,402
 9. Social insurance and health contributions 2,910 3,424 3,729
10. Taxes on expenditure 9,257 10,910 12,484
11. Total taxation (excluding taxes on capital) 21,491 24,854 27,615
12. Gross trading and investment income 741 981 1,115
13. Current transfers from the rest of the world 460 451 330
14. Miscellaneous Receipts 1,460 1,620 1,631
15. Total receipts on Current Account 24,151 27,906 30,691
EXPENDITURE      
16. Subsidies: 719 820 820
17. National debt interest 1,698 1,633 1,687
18. Current transfer payments:      
to residents 7,225 7,840 8,826
to ROW 519 556 678
19. Current expenditure on goods and services (including depreciation) 4,583 5,225 5,851
20. Current expenditure on goods and services by local authorities 5,133 5,853 6,363
21. Total expenditure on Current Account 19,878 21,927 24,226
22. Gross Saving (+)/Deficit(-) [15-21] 4,273 5,979 6,465

Part III
CAPITAL ACCOUNT

  1999 2000 2001
    Provisional Budget
    Outturn Estimate
RECEIPTS £m £m £m
23. Taxes on capital 509 814 943
24. Loan repayments 3,793 1,355 69
25. Capital transfers from ROW 509 513 796
26. Capital receipts 494 593 711
27. Borrowing (2,211) (4,578) (3,367)
28. Total receipts on Capital Account 3,093 (1,303) (848)
29.  Capital receipts less Financial Transactions [24. 27.] 1,512 1,920 2,450
       
EXPENDITURE      
30. Grants to private sector 1,686 550 353
31. Other transfers payments 365 417 640
32. Debt Redemption 2,872 418 417
33. Loans and purchase of share capital 179 159 185
34. Gross physical capital formation 2,248 3,123 4,011
35. Capital payments to ROW 16 7 9
36. Total expenditure on Capital Account 7,366 4,675 5,615
37. Capital expenditure less Financial Transactions [32. 33.] 4,315 4,098 5,014
38. Current Saving (+)/Deficit (-) [22] 4,273 5,979 6,465
39. Capital Saving (+)/Deficit (-) [29 - 37] (2,803) (2,179) (2,565)
40. Net Lending (+)/Borrowing (-) 1,470 3,800 3,900

NATIONAL ACCOUNTS CLASSIFICATION OF GENERAL GOVERNMENT
Note: Rounding may affect totals
 
Part I
SUMMARY

  1999 2000 2001
    Provisional Budget
    Outturn Estimate
  €m €m €m
RECEIPTS      
 1. Current (15) 30,666 35,433 38,969
 2. Capital (29) 1,919 2,437 3,110
 3. Total Receipts (1 + 2) 32,585 37,870 42,079
       
EXPENDITURE      
 4. Current (21) 25,240 27,842 30,761
 5. Capital (37) 5,479 5,204 6,366
 6. Total expenditure (4 + 5) 30,719 33,046 37,127
 7. Net Lending(+)/Borrowing(-) (3 - 6 = 40) 1,866 4,825 4,952

Part II
CURRENT ACCOUNT

  1999 2000 2001
    Provisional Budget
    Outturn Estimate
  €m €m €m
RECEIPTS      
 8. Taxes on income and wealth 11,839 13,358 14,478
 9. Social insurance and health contributions* 3,694 4,348 4,735
10. Taxes on expenditure 11,755 13,853 15,852
11. Total taxation (excluding taxes on capital) 27,288 31,558 35,064
12. Gross trading and investment income 940 1,246 1,415
13. Current transfers from the rest of the world 584 572 419
14. Miscellaneous Receipts 1,854 2,057 2,071
15. Total receipts on Current Account 30,666 35,433 38,969
       
EXPENDITURE      
16. Subsidies: 913 1,041 1,042
17. National debt interest 2,156 2,074 2,143
18. Current transfer payments:      
to residents 9,174 9,955 11,206
to ROW 659 706 861
19. Current expenditure on goods and      
services (including depreciation) 5,819 6,634 7,430
20. Current expenditure on goods and services 6,518 7,432 8,079
by local authorities      
21. Total expenditure on Current Account 25,240 27,842 30,761
22. Gross Saving (+)/Deficit(-) [15-21] 5,426 7,591 8,208

Part III
CAPITAL ACCOUNT

RECEIPTS 1999 2000 2001
    Provisional Budget
    Outturn Estimate
  €m €m €m
23. Taxes on capital 647 1,034 1,197
24. Loan repayments 4,816 1,721 88
25. Capital transfers from ROW 646 652 1,010
26. Capital receipts 627 752 903
27. Borrowing (2,808) (5,813) (4,275)
28. Total receipts on Capital Account 3,928 (1,655) (1,076)
29.  Capital receipts less Financial Transactions [24. 27.] 1,919 2,437 3,110
EXPENDITURE      
30. Grants to private sector 2,141 699 448
31. Other transfer payments 464 530 812
32. Debt Redemption 3,647 531 529
33. Loans and purchase of share capital 227 202 235
34. Gross physical capital formation 2,854 3,966 5,093
35. Capital payments to ROW 20 9 12
36. Total expenditure on Capital Account 9,353 5,937 7,130
37. Capital expenditure less Financial Transactions [32. 33.] 5,479 5,204 6,366
38. Current Saving (+)/Deficit (-) [22] 5,426 7,591 8,208
39. Capital Saving (+)/Deficit (-) [29 - 37] (3,560) (2,766) (3,255)
40. Net Lending (+)/Borrowing (-) 1,866 4,825 4,952