National Accounts Classification of General Government - Budget 2004

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 2002 are based on published information. Figures for 2003 are provisional and are subject to revision when the Appropriation Accounts and other final accounts become available. The estimates shown for 2004 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/ Borrowing figure - this is also known as the General Government Balance.

5. It should be noted that Net Lending/Borrowing (item 40) varies from the Exchequer Balance 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 Balance on the basis that such transactions affect the composition but not the level of assets and liabilities. The proceeds from the sale of ACC Bank in 2002, for example, are treated as a financial transaction under ESA conventions and are not counted as income of the Government Sector, whereas these receipts are included as income in the Exchequer Balance;
  • payments in respect of the prefunding of future pension liabilities do not impact on the General Government Balance 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 Balance. However, such payments are included as expenditure in the calculation of the Exchequer Balance;
  • the treatment of extra-budgetary fund transactions of which the most notable examples are:

(i) assigning payments from Funds such as the National Training 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; and

(ii) the accrual of certain transactions to the period when the underlying economic activity took place. This includes Departmental and Revenue Commissioners Balances carried from one year to another which are discounted in favour of the underlying transactions and

(iii) an adjustment to certain tax receipts to accrue the receipts to the period when the underlying economic activity giving rise to the tax liability took place;

  • the inclusion of the full impact of local government receipts and expenditure whereas the Exchequer Balance only includes transfers between local government and the Exchequer and
  • the inclusion of the capital cost of certain PPP projects which impact on the General Government Balance over the period of construction but impact on the Exchequer via annual payments through the relevant Vote over the life-cycle of the project.

The differences between the Exchequer Balance and Net Lending/Borrowing (the General Government Balance) are shown in tabular form in Table 2 of the Budget 2004 Statistics and Tables.

 

NATIONAL ACCOUNTS CLASSIFICATION OF GENERAL GOVERNMENT

Part I

SUMMARY

 
2002
2003
2004
   
Provisional
Budget
   
Outturn
Estimate
 
€m
€m
€m

RECEIPTS

     
1. Current (15) 38,876 41,171 43,994
2. Capital (29) 2,377 2,978 2,414
3. Total Receipts (1+2) 41,254 44,149 46,408
       
EXPENDITURE
     
4. Current (21) 34,663 38,170 41,210
5. Capital (37) 6,837 6,573 6,834
6. Total Expenditure (4+5) 41,499 44,743 48,044
       
7. Net Lending (+)/Borrowing (-) [3-6=40] -246 -594 -1,635
       

 

Part II

CURRENT ACCOUNT

 
2002
2003
2004
   
Provisional
Budget
   
Outturn
Estimate
 
€m
€m
€m
RECEIPTS
     
       
8. Taxes on income and wealth 14,362 14,845 16,078
9. Social insurance and health contributions 5,499 5,828 6,205
10. Taxes on expenditure (including rates) 15,703 17,000 18,335
11. Total taxation (excluding taxes on capital) 35,563 37,674 40,618
       
12. Gross trading, rental and investment income 1,635 1,711 1,573
13. Current transfers from the rest of the world 185 220 167
14. Miscellaneous Receipts 1,494 1,566 1,637
15. Total receipts on Current Account 38,876 41,171 43,994
       
EXPENDITURE
     
       
16. Subsidies: 865 863 878
17. National debt interest 1,854 1,993 2,083
18. Current transfer payments:      
to residents 12,857 14,389 15,513
to the rest of the world 1,056 1,239 1,561
19. Current expenditure on goods and      
services (excluding depreciation) 7,570 8,216 8,860
20. Current expenditure on goods and services 10,462 11,470 12,315
by local authorities      
21. Total expenditure on Current Account 34,663 38,170 41,210
       
22. Gross Saving (+)/Deficit(-) [15-21] 4,214 3,000 2,784
       

 

Part III

CAPITAL ACCOUNT

 
2002
2003
2004
   
Provisional
Budget
   
Outturn
Estimate
 
€m
€m
€m

RECEIPTS

     
23. Taxes on capital 979 1,560 1,002
24. Loan repayments and equity sales 1,001 448 462
25. Capital transfers from the rest of the world 586 484 431
26. Other Capital receipts 812 934 981
27. Borrowing 222 1,129 2,174
28. Total receipts on Capital Account 3,601 4,555 5,050
       
29. Capital receipts less Financial Transactions [24. 27.] 2,377 2,978 2,414
       

EXPENDITURE

     
30. Grants to enterprises 383 421 477
31. Other transfer payments 756 838 850
32. Debt Redemption 525 530 548
33. Loans and purchase of share capital 453 453 453
34. Gross fixed capital formation 5,687 5,288 5,465
35. Capital payments to ROW 11 26 41
36. Total expenditure on Capital Account 7,814 7,556 7,835
       
37. Capital expenditure less Financial Transactions [32. 33.] 6,837 6,573 6,834
       
38. Current Saving (+)/Deficit (-) [22] 4,214 3,000 2,784
39. Capital Saving (+)/Deficit (-) [29-37] -4,459 -3,595 -4,420
40. Net Lending (+)/Borrowing (-) [38+39] -246 -594 -1,635