The Government Finance Statistics Analytic Framework 73
separate category so that for some analyses the fi scal
impact of these policy-related transactions in assets
could be assessed separately.^12
4.31 All other transactions in fi nancial assets are
assumed to be for liquidity management or other pur-
poses. Th at is, the assets are acquired to earn a mar-
ket rate of return while keeping suffi cient funds on
hand to fi nance day-to-day operations, or to meet the
long-term needs of society, such as through a special-
purpose government fund.
Th e Statement of Sources and Uses of Cash.
4.32 Information on the sources and uses of cash
is important for assessing the liquidity of the gen-
eral government and public sectors. Th e Statement
of Sources and Uses of Cash (see Table 4.2) shows the
total amount of cash generated or absorbed by cur-
rent operating activities, transactions in nonfi nancial
assets, and transactions involving fi nancial assets and
liabilities other than the fi nancial asset currency and
deposit (cash) itself. Th e net change in the stock of
cash is the sum of the net cash received from these
three sources.
4.33 Th e net change in the stock of cash refers to
the fi nancial asset currency and deposits (3202). Cur-
rency consists of notes and coins that are of fi xed
nominal values and are issued or authorized by the
central bank or government. Deposits are all claims,
represented by evidence of deposit, on the deposit-
taking corporations (including the central bank) and,
in some cases, general government or other institu-
tional units. Th e classifi cation of this fi nancial asset is
described in Chapter 7 and transactions are discussed
in Chapter 9.
4.34 Th e Statement of Sources and Uses of Cash
(Table 4.2) refl ects transactions when using the cash
basis of recording. Th is, in eff ect, means that transac-
tions are captured only when cash is received or when
cash payments are made (see paragraphs 3.67 and
3.103–3.105).
(^12) Th e net acquisition of fi nancial assets for policy purposes was
called “lending minus repayments” in the GFSM 1986 and was
oft en referred to as “net lending.” Th ese terms should not be
confused with the term “net lending/net borrowing” used in this
Manual.
4.35 Additional useful information for fi scal analy-
sis is obtained from an analysis of the diff erences
between amounts reported in the Statement of Opera-
tions and the Statement of Sources and Uses of Cash.
Table 4.2 Statement of Sources and Uses of
Cash
Cash Flows from Operating Activities:
C1 Revenue cash fl ows
C11 Taxes
C12 Social contributions
C13 Grants
C14 Other receipts
C2 Expense cash fl ows
C21 Compensation of employees
C22 Purchases of goods and services
C24 Interest
C25 Subsidies
C26 Grants
C27 Social benefi ts
C28 Other payments
CIO Net cash infl ow from operating activities
(C1–C2)
Cash Flows from Transactions in Nonfi nancial Assets:
C31 Net cash outfl ow from investment in
nonfi nancial assets^1
C311 Fixed assets
C312 Inventories^2
C313 Valuables
C314 Nonproduced assets
C2M Expenditure cash fl ows (C2+C31)
CSD Cash surplus (+) / Cash defi cit (–) (C1–C2–
C31 = C1–C2M = C32–C33)
Cash Flows from Transactions in Financial Assets and
Liabilities (Financing):
C32x Net acquisition of fi nancial assets other than
cash
C321x Domestic^3
C322x External^3
C33 Net incurrence of liabilities
C331 Domestic^3
C332 External^3
NFB Net cash infl ow from fi nancing activities
(C33–C32x)
NCB Net change in the stock of cash
(CSD+NFB = C3202 = C3212+C3222)
(^1) The net cash outfl ow from investment in nonfi nancial assets
equals purchases minus sales.
(^2) On a cash basis, the category inventories (C312) is limited to
changes in strategic stocks. Other inventories are, by defi nition
of the cash basis of recording, considered an expense when
acquired.
(^3) Classifi ed by instrument and/or sector of the counterparty (see
Tables 9.1 and 9.2).