140 Government Finance Statistics Manual 2014
in the form of membership dues, subscriptions, and
voluntary donations, whether made on a regular
or occasional basis.^40 Such transfers are intended
to cover the costs of the production of nonprofi t
institutions serving households or to provide the
funds out of which current transfers may be made
to households in the form of social assistance ben-
efi ts. Th is category also covers transfers in kind in
the form of food, clothing, blankets, and medicines
to charities for distribution to households.- Current taxes, compulsory fees, and fi nes im-
posed by one unit of general government or pub-
lic corporations on another government unit or
public corporation: Th ese transfers are subject to
elimination by consolidation. - Net nonpayable tax credits: When, due to tim-
ing diff erences, the amount of a nonpayable tax
credit exceeds the amount of tax otherwise re-
ceivable from taxpayers in the reporting period,
and the excess is paid to the taxpayer, the net
payment should be recorded as expense rather
than negative tax. - Gross payable tax credits other than those classi-
fi ed as subsidies or social benefi ts: Th ese amounts
arise from tax credits payable irrespective of
whether taxes are payable, and are recorded on
a gross basis so that the total amount payable is
recorded as expense (see paragraphs 5.29–5.32). - Fines and penalties imposed by courts of law or
quasi-judicial bodies. - Payments of compensation for injury to persons
or damage to property caused by general govern-
ment or public sector units, excluding payments
of nonlife insurance claims: Th ese payments
can be either compulsory payments awarded by
(^40) Membership dues and subscription fees are recorded as an
expense in use of goods and services (22) if there is an exchange of
a payment for some form of a service (see paragraph 6.42).
courts of law or ex gratia payments agreed out of
court.
- Scholarships and other educational benefi ts pay-
able for households that are not related to social
risks. - Purchases of goods and services from market pro-
ducers that are distributed directly to households
for fi nal consumption other than social benefi ts.
Capital transfers not elsewhere classifi ed (2822)
6.124 Th e most important types of capital transfers
included here are:- Capital taxes (see paragraph 5.51) imposed by
one unit of general government on another gov-
ernment unit or public corporation: Th ese trans-
fers are subject to elimination by consolidation. - Major, nonrecurrent, exceptional payments in
compensation for extensive damages or serious
injuries such as those arising from catastrophes
not covered by insurance policies are included as
a capital transfer. - Capital transfers to corporations, quasi-
corporations, nonprofi t institutions serving
households, households, and nonresidents in
cash or in kind, to fi nance all or part of the costs
of acquiring nonfi nancial assets, to cancel or as-
sume a debt by mutual agreement with the debtor
without acquiring an eff ective fi nancial claim on
the original debtor (see Box 6.3).^41 - Transfers payable to corporations and quasi-
corporations to cover large operating defi cits ac-
cumulated over two or more years.^42 - Payment of interest or other debt service cost on
behalf of other producer units without acquiring
an eff ective claim on the original debtor. - Amounts payable in excess of the value of liabili-
ties for the provision of pension entitlements as-
sumed by other units.^43
(^41) Th is expense category excludes amounts payable for the acquisi-
tion of equity (see paragraph 9.49).
(^42) Where a realistic expectation exists that such amounts will
be repayable, as indicated by certain criteria (see Box 6.3), the
transaction should be classifi ed as the acquisition of a fi nancial
asset. A regular transfer covering an operating defi cit is recorded
as a subsidy.
(^43) Amounts payable up to the value of the liability assumed should
be recorded as transactions in fi nancial assets and liabilities (i.e.,
the reduction in liabilities) (see paragraphs 9.66–9.67).
Table 6.10 Detailed Classifi cation of Transfers
Not Elsewhere Classifi ed (282)
282 Transfers not elsewhere classifi ed^1
2821 Current transfers not elsewhere classifi ed
2822 Capital transfers not elsewhere classifi ed
(^1) Further breakdown/“of which” lines could allow for the
identifi cation of subsectors and individual units (see Table 3.1).