Notifications of the government deficit and debt
| Notification of government deficit and debt | April 2012 |
The notification of government deficit and debt is compiled for the past four years and submitted to the European Commission by each Member State of the EU twice a year, regularly at the end of March and September, including a projection for the current year. The calculation of the requested aggregates is based on the methodology of the European System of Accounts (ESA95). 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 organisational units of the state, territorial self-governing units, selected semi-budgetary (subsidized) organizations, state and other extra-budgetary funds (Land Fund, Support and Guarantee Agricultural and Forestry Fund, Vine-grower Fund, and other), 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 for International Reimbursements. Since 2010, on the basis of a repeated test, several non-financial enterprises have been reclassified to the general government sector. At the same time, due to the same reason, selected semi-budgetary organizations have been reclassified to the non-financial enterprises sector and general government sector.
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 (-) in the given year.
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.
Indicators given in the table were transmitted to Eurostat on 30 th March 2012. Data for 2009 and 2010 have been updated using more detailed and additionally obtained information on transactions of government units.
The government deficit for 2009 and 2010 has been clarified in relation to tax revenues adjustments (due to methodological change in the calculation of income tax) and specification of fixed capital formation. These adjustments had an impact on the share of the government deficit in GDP in the amount of hundredths of a percentage point. Adjustments in the government debt related especially to changes in the recording of interest on issued debt securities and received loans that had an impact on the share of the government debt in the amount by 0.50 a percentage point.
The projection of government deficit and debt for the year 2012 is prepared and published by the Ministry of Finance of the CR.
The statement of the European Commission is expected on 23 April 2012.
Prague, 30 March 2012