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