Government Finance Statistics Manual 2014

340 Government Finance Statistics Manual 2014

Box A5.1 Regional Arrangements in the Harmonizing of GFS

Customs Union of Belarus, Kazakhstan, and Russian Federation

The Customs Union between Belarus, Kazakhstan, and Russia came into existence in 2010. Common trade controls and

external tariffs exist, and two regional organizations make decisions related to the union. These agencies are fi nanced

by transfers from member countries. Customs duties collected at the fi rst point of entry are redistributed to members via

special accounts of members in the respective treasuries and the central banks. While no specifi c harmonization effort

for fi scal data was implemented, the importance of consistency in recording trade data and valuations, and recording

collection and redistributions related to customs collections is being considered by the member countries.

Eastern Caribbean Currency Union

In 2012, a proposal to migrate from the existing reporting format (based on the GFSM 1986) to a presentation high-

lighting the integration of stocks and fl ow as recommended by the GFSM 2001 was endorsed by the Eastern Caribbean

Central Bank and the member countries.

European Union

The excessive defi cit procedure, defi ned by the Maastricht Treaty (article 104) and in force in the European Union since

1994, is a well-known regional arrangement in the compilation of fi scal data. The conceptual references for the debt

and defi cit aggregates are based on the European System of Accounts (ESA). The compilation practices and reporting

requirements are legally binding in the European Union; regulations adopted by the European Commission form the

basis for reporting. Eurostat issued the Manual on Government Defi cit and Debt to aid member states in the application

of ESA principles. This Manual addresses the most common statistical issues raised in the EU.

Mercosur

At the 40th meeting of Mercosur economy ministers and central bank chairmen in December 1998, the need to have sta-

tistical data based on a common methodology in Mercosur was acknowledged. This common methodology materialized

in 2000, as a result of the member countries’ decision to coordinate their macroeconomic policies with joint convergence

targets. The preparation of harmonized statistics was agreed on, starting with six indicators: nominal fi scal balance of

the national government, primary fi scal balance of the national government, net debt of the national government,

net debt of the consolidated public sector, change of net debt of the consolidated public sector, price level, and the

construction of a new indicator of the structural fi scal balance. Further efforts have been made since then in order to

harmonize the Mercosur statistics according to international standards.

South African Development Community (SADC)

In 2010, participants from member countries of SADC endorsed a proposal by the SADC Secretariat to adopt the GFSM

2001 presentation of fi scal statistics, beginning in 2012. Preliminary work on converting the historical SADC fi scal data-

base (based on the GFSM 1986) was completed, and countries made a commitment to begin compiling a Statement of

Sources and Uses of Cash and a fi nancial balance sheet.

West African Economic and Monetary Union (WAEMU) and Economic and Monetary Community of

Central Africa (CEMAC)

In June 2009, the Council of Ministers of WAEMU adopted fi ve regulations (directives) related to public fi nance man-

agement. One of the directives is related to the common reporting format of government fi scal operations known as

Tableau des operations fi nancières de l’État (TOFE). The TOFE directive is based on the GFSM 2001 methodology. The

long-term objective of this directive is for member countries to produce comparable general government data for both

fl ows and stocks. In December 2001, similar directives, including a TOFE directive, were adopted by the Council of Min-

isters of the CEMAC. In both monetary unions, a transition period was determined to fully implement the directives. (At

the time of publishing this Manual, CEMAC was undertaking a revision of its public fi nance directives, one of which is

related to common reporting formats for government fi scal operations.)