Government Finance Statistics Manual 2014

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68 Government Finance Statistics Manual 2014


Figure 4.1 Structure of the GFS Analytic Framework

++=

Minus

++=

++=

++=

++=

Equals

Plus

Equals Equals Equals

Opening
Balance Sheet

Equals

Minus Minus Minus

Equals

Plus Plus Plus

Equals Equals

+=

Statement of
Operations

Equals

Net worth

Stock positions Flows Stock positions

Change
in net worth
due to transactions
(net operating
balance)

Change
in net worth due
to other economic
flows

Revenue
minus
Expense

Nonfinancial
assets

Financial assets

Liabilities

Transactions in
nonfinancial
assets

Transactions in
financial assets

Transactions in
liabilities

Other economic
flows in
nonfinancial assets

Other economic
flows in
financial assets

Other economic
flows in liabilities

Net financial
worth

Change in net
financial worth due
to transactions (net
lending (+) / net
borrowing (–))

Change in net
financial worth
due to other
economic flows

Net worth

Nonfinancial
assets

Financial assets

Liabilities

Net financial
worth

Transactions Other economic flows

Opening
Balance Sheet

Closing
Balance Sheet

Statement of Other
Economic Flows

Statement of
Operations

Equals

Plus

Equals

Minus

Equals

Plus

Equals

Minus

Equals

Plus

Equals

Minus

Equals

Plus

Equals

Minus

Equals

as the sale of a good or service by one unit and its
purchase by another (see paragraph 3.5). Th e frame-
work also recognizes that a unit can act in two capaci-
ties of economic interest and includes as transactions
some items that do not involve another institutional
unit. For example, consumption of fi xed capital rec-
ognizes that a unit is both the owner of a fi xed asset

and the consumer of the services provided by the
asset. Taken together, transactions constitute the larg-
est share of the fl ows associated with the implemen-
tation of fi scal policy. As described in the following
section, transactions are classifi ed to demonstrate
how general government and public sector units raise
revenue and spend it, and to show the eff ects of fi scal
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