Notifications of the government deficit and debt
| Notification of government deficit and debt | April 2011 |
The notification of government deficit and debt is compiled for the past four years as a rule and submitted by each member state of the EU twice a year, regularly at the close of March and September, including a projection for the current year. The calculation of the aggregates requested relies on the methodology of the European system of national accounts (ESA 95). Pursuant to the Maastricht criteria, the deficit and the cumulated debt should not exceed 3% of GDP and 60% of GDP respectively.
The government deficit/surplus and the government debt reflect the financial performance of all institutional units classified to the general government sector – they are governmental departments, territorial self-governing units, some semi-budgetary (subsidized) organizations, state and other extra-budgetary funds (Land Fund, Support and Guarantee Agricultural and Forestry Fund, or Vine-grower Fund), Railway Infrastructure Administration, transformation institution Prisko, PPP Centre, public universities, public research institutions and health insurance companies, association and unions of health insurance companies and Centre of Interstate Settlements.
Government surplus/deficit – EDP B.9 - refers to net borrowing (-) or net lending (+) including interest on swap transactions. It shows the ability of the general government sector to finance other entities (+) or the need of the general government sector to be financed (-).
Government debt includes, by definition, liabilities of the general government sector resulting from currency emissions (not applicable to the CR), received deposits, issued securities other than shares (except for financial derivatives), and received loans.
In comparison to the EDP notification published the 1 st April 2011 the tax revenue of the year 2009 has been diminished by 1 183 mil. CZK. It resulted in increase of the government deficit from 5,82 % to 5,87 %. No other change took place.
Prague, 26th April 2011