EDP deficit+/-Swaps and RFA net proceeds
=
NA deficit
=
NA revenues- NA expenditures
Therefore the NA public expenditure is directly linked to the EDP deficit. In other words, if one analyses
NA public expenditure, one implicitly (and coherently) analyses the determinants of the EDP deficit on
the spending side.
NA public expenditure is precisely defined by ESA95 (even in table 2 of the Transmission programme),
which states that:
Total expenditure = Intermediate consumption +
Compensation of employees +
Other taxes on production payable +
Subsidies payable +
Property income payable +
Current taxes on income, wealth etc. payable +
Social benefits other than social transfers in kind and social transfers in kind
related to expenditure on product supplied to households via market producers +
Other current transfers payable +
Adjustment for the change in net equity of households in pension funds reserve +
Capital transfers payable +
Gross capital formation and acquisitions less disposals of non-financial non-
produced assetsThis total is broken down by economic and functional category according to homogeneous criteria by all
European countries and, with some not relevant particularities, by other main OECD countries, like US,
Japan, Canada. This kind of statistics is collected by IMF in similar formats.
For European countries, the ESA95 Transmission programme explicitly asks to respect the identity
between the total expenditure of table 2 (Main aggregates of General Government, which includes the
deficit) and the total expenditure of table 11 (Expenditure of General Government by function).
Therefore, in principle, comparability across space is assured in order to implement non-distorted cross-
country analysis. In addition, statistics should be available with a sufficient degree of coverage for
several years, preferably starting from the beginning of nineties. Therefore, in principle comparability
across time is assured in order to allow non-distorted longitudinal analysis as well.
The breakdown of the NA public expenditure by economic and functional category represents, therefore,
the core of the architecture of the information system proposed in this document. The core of the system
(the planet of the satellite account framework), in other words, is the well known table 11 of the
transmission programme established by the ESA95 (ESA95TP), which is in force for all European
countries (see below):