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E-mail: gfs@cso.ie Rod O'Mahony (+353) 1 498 4304 Máire O'Mahony (+353) 1 4984308
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CSO statistical release, 14 October 2014, 11am

Government Finance Statistics - Annual

2009 to 2013 (October 2014 Results)

General Government Deficit, Gross Debt and Net Debt
 GG DeficitGG Gross DebtGG Net Debt
End of year€m% GDP€m% GDP€m% GDP
2009-23,357-13.9104,54062.262,55937.2
2010-53,467-32.4144,16387.4111,28967.5
2011-21,588-12.6190,111111.1135,23579.1
2012-13,901-8.0210,226121.7151,78187.9
2013-9,967-5.7215,550123.3160,96292.1

Government Deficit of 5.7% of GDP in 2013

Figure 1 General Government Deficit, Gross Debt and Net Debt
go to full release

Government Deficit of 5.7 % of GDP in 2013

General Government experienced a deficit of €9,967 million (5.7% of GDP) in 2013 - an improvement on the 2012 position of €13,901 million (8.0% of GDP).

Government revenue increased from €59,083 million in 2012 to €60,837 million in 2013 driven by increased tax and social contribution revenues, while expenditure decreased from €72,984 million to €70,804 million over the same period with decreases observable in most expenditure categories except interest and current transfers (Table 1).

Taxes and social contributions, the largest component of revenue over the period, represented just under 87% of total government revenue in 2013. Social benefits, the biggest expenditure category, accounted for just over 40% of government spending in 2013.

Government Debt at 123.3% of GDP in 2013 

The gross debt of General Government stood at €215,550 million at the end of 2013, or 123.3% of GDP, up from €210,226 million at the end of 2012, or 121.7 % of GDP.

General Government Net Debt for 2013 amounted to €160,962 million or 92.1% of GDP.  This net debt figure is obtained by deducting the values of the financial assets from the corresponding categories of financial liabilities in General Government Gross Debt (Table 2).

The results in this release are presented under the new ESA 2010 standards. See box below and Background Notes for further information.   

National accounts are compiled in the EU according to the European System of National and Regional Accounts (ESA) framework. In 2014, the new ESA 2010 framework replaced the previous ESA 95 version and all EU member states were required to adopt ESA 2010 by September 2014. Quarterly Government Finance Statistics were published for the first time according to the new standard in July of this year.  Details of the main changes to government deficit and debt and their components due to the new standards are set out in the background notes to this release.  The revised GDP figures under ESA 2010 also have an effect on the deficit and debt to GDP ratios when compared with the equivalent measures under ESA 95.

This release is subject to the normal verification process of the Excessive Deficit Procedure by Eurostat until October 21st 2014, and should therefore be regarded as provisional.


 

 

 

Total RevenueTotal Expenditure
200934.484858285038948.1528836926284
201034.882907220449765.494175792891
201134.029161864267647.078555497863
201234.538997201841142.6036303461527
201335.883017793455642.8958019322665
Table 1 General Government transactions: revenue, expenditure, financing and deficit 
        €million
DescriptionESA2010 code20092010201120122013
   
General Government transactions      
   
RevenueTR56,65355,48657,31959,08360,837
Taxes and social contributionsD2 + D5 + D91 + D6149,11147,57348,97250,71652,790
TaxesD2 + D5 + D9138,86838,08839,00041,06442,489
Social contributions D6110,2439,4859,9729,65110,301
Sales of goods and servicesP1O4,5765,2845,1634,9264,461
Investment incomeD41,9842,1122,4453,0233,142
Current transfer revenue (excluding taxes)D7175187126128143
Capital transfer revenue (excluding taxes)D9N806331613290301
    
ExpenditureTE80,009108,95378,90772,98470,804
ExpenseExpense76,942106,58477,88072,71271,480
Compensation of employeesD120,71319,29319,17518,90718,652
Use of goods and services plus taxes payableP2 + D5 + D2910,0489,0828,7028,4248,272
Depreciation (Consumption of fixed capital)P51c3,1853,0773,1053,1513,071
Interest (excluding FISIM)D413,4124,9215,8887,1577,657
SubsidiesD31,8891,7891,5841,5481,508
Social benefitsD62 + D63128,84828,77328,79629,40628,603
Other current transfersD72,7042,5202,4292,4522,717
Capital transfersD96,14337,1308,2011,6661,000
    
 Net operating balanceNOB-20,289-51,098-20,561-13,629-10,643
    
Net acquisition of non-financial assetsP5 + NP - P51c3,0672,3691,027272-676
          
 General Government Surplus/DeficitB9-23,357-53,467-21,588-13,901-9,967
equals    
Net acquisition of financial assetsΔFA2,998-11,4994,0765,710-5,050
Debt instrumentsF2 + F3 + F45,266-8,9352784,400-3,933
Equity and Investment Fund SharesF5-2,357-2,3883,7011,827-1,337
Other financial assetsF6 + F7 + F8 89-17697-517220
less    
Net incurrence of liabilitiesΔL26,35541,96825,66419,6114,917
Debt instrumentsF2 + F3 + F426,13040,85225,74819,2975,708
Other liabilitiesF5 + F6 + F7 + F8 2251,116-84314-791
     
  Memo: Net derivative flows on debt interest swap contracts -710-132-221-274
         
 General Government Surplus/Deficit (% of GDP) -13.9-32.4-12.6-8.0-5.7
Table 2 General Government Net Worth, Gross and Net Debt  
           €million
Description ESA2010 code20092010201120122013
General Government net worth      
Net worth at market value, excluding pension liabilitiesNW46,2985,586-19,638-50,344-57,601
equals     
Non-financial assets at market valueNFA88,37584,41285,04387,05888,575
plus     
Financial net worth at market value, excluding pension liabilitiesFNW-42,077-78,826-104,681-137,402-146,176
equals     
Financial assets at market valueFA72,68961,67688,13892,07893,731
EDP debt instrumentsF2 + F3 + F441,98132,87454,87458,44554,603
Equity and Investment Fund SharesF521,78820,13022,97524,60129,865
Other financial assetsF6 + F7 + F8 8,9208,67210,2899,0329,263
less     
Liabilities at market valueL114,766140,502192,819229,480239,907
EDP debt instrumentsF2 + F3 + F4108,335132,934182,260218,855231,798
Other liabilitiesF5 + F6 + F7 + F86,4317,56810,55910,6258,109
     
Memo: Estimated pension liabilities of government116,000116,000116,00098,00098,000
     
Memo: Net worth, including pension liabilities-69,702-110,414-135,638-148,344-155,601
     
Contingent liabilities287,559163,376148,537120,60661,427
     
 Memo: Net worth, including pension liabilities and contingent liabilities -357,261-273,791-284,174-268,950-217,028
General Government: changes in net worth      
Opening net worth74,47646,2985,586-19,638-50,344
     
Change in net worth due to transactions-20,289-51,098-20,561-13,629-10,643
Net acquisition of non-financial assets P5 + NP - P51c3,0672,3691,027272-676
Net lending/net borrowingB9-23,357-53,467-21,588-13,901-9,967
     
Change in net worth due to other economic flowsKx-7,88910,386-4,662-17,0783,386
Other changes in non-financial assets-11,722-6,332-3961,7422,194
Other changes in financial assets3,07748622,386-1,7706,703
Other changes in liabilities75716,232-26,653-17,050-5,510
            
Closing net worth 46,2985,586-19,638-50,344-57,601
            
General Government Debt (GGDebt)      
Debt instrument liabilities at market valueF2 + F3 + F4108,335132,934182,260218,855231,798
+ Difference between EDP face value and market value-3,79511,2297,851-8,629-16,248
            
 Gross General Government Debt (EDP face value)GGDebt104,540144,163190,111210,226215,550
     
less EDP debt instrument assetsF2 + F3 + F4-41,981-32,874-54,876-58,445-54,588
 Net General Government Debt GGNetDebt62,559111,289135,235151,781160,962
    
Closing Net Worth (% of GDP) 27.53.4-11.5-29.1-33.0
Gross General Government Debt (% of GDP)62.287.4111.1121.7123.3
Net General Government Debt (% of GDP) 37.267.579.187.992.1
Table 3 General Government: detailed classification of revenue and output      
          €million
DescriptionESA2010 code20092010201120122013
           
Total RevenueTR56,65355,48657,31959,08360,837
 Taxes and social contributions 49,11147,57348,97250,71652,790
  TaxesD2 + D5 + D9138,86838,08839,00041,06442,489
   Indirect taxes (taxes on production and imports)D218,13217,96017,59818,18719,019
    Taxes on productsD2116,28816,07515,69916,09216,721
    of which Value-Added TaxD21110,32410,0679,75510,21910,371
    Other taxes on production D291,8441,8841,9002,0952,298
   Direct taxesD520,47919,89321,16022,59523,192
    Taxes on income, profits and capital gainsD5119,48518,92719,75321,13221,613
    Other current direct taxesD599939661,4071,4631,579
   Capital taxesD91258235242282278
  Social contributions D6110,2439,4859,9729,65110,301
   Actual social contributionsD611 + D6137,5757,0837,6527,1867,686
   Employers' imputed social contributionsD6122,6692,4022,3202,4662,615
 Sales of goods and servicesP1O4,5765,2845,1634,9264,461
  Sales of market establishments (= market output)P119078779059691,032
  Imputed sales related to production of own-use capital assets (= output for own final use)P126458583833
  Incidental sales and fees of non-market establishmentsP1313,6054,3494,2003,9203,396
 Investment incomeD41,9842,1122,4453,0233,142
  Interest (excluding FISIM)D419788501,3601,5891,366
  DividendsD421,0041,2601,0811,4301,772
 Current transfer revenueD39 + D7175187126128143
  SubsidiesD3900000
  Other current transfersD7175187126128143
   Non-life insurance claimsD721414131413
   Other Domestic - Current D7N_S17974727273
   From Rest of World - CurrentD7N_S28299414257
 Capital transfer revenueD9N806331613290301
           
Output P134,22631,72131,27430,84830,417
 Market output (sales of market establishments)P119078779059691,032
 Output for own final useP126458583833
 Non-market outputP1333,25530,78630,31129,84229,352
  = Non-market compensation of employeesD1_nonmarket20,64819,23519,11718,86918,619
   = Total compensation of employeesD120,71319,29319,17518,90718,652
   - Compensation of employees of market establishmentsD1_market     
   - Compensation related to production of own-use capital assetsD1_own-use-64-58-58-38-33
  + Non-market intermediate consumptionP2_nonmarket9,8238,8588,4748,2118,060
   = Total intermediate consumptionP210,0489,0828,7008,4238,272
   - Intermediate consumption of market establishmentsP2_market-225-224-227-212-212
   - Intermediate consumption related to production of own-use capital assetsP2_own-use     
  + Non-market consumption of fixed capitalP51c_nonmarket2,7832,6932,7202,7622,673
   = Total consumption of fixed capitalP51c_nonmarket3,1853,0773,1053,1513,071
   - Consumption of fixed capital by market establishmentsP51c_market-402-384-385-389-397
   - Consumption of fixed capital related to production of own-use capital assetsP51c_own-use     
  + Other taxes on production, payable D29_pay00000
  - Other subsidies on production, receivableD39_rec00000
Table 4 General Government: detailed classification of expenditure and consumption  
          €million
DescriptionESA2010 code20092010201120122013
           
Total ExpenditureTE80,009108,95378,90772,98470,804
           
 Expense 76,942106,58477,88072,71271,480
  Compensation of employeesD120,71319,29319,17518,90718,652
   Of which: Related to production of own-use capital assets 6458583833
  Use of goods and services plus taxes payableP2 + D5 + D2910,0489,0828,7028,4248,272
   Use of goods and services [Intermediate consumption]P210,0489,0828,7008,4238,272
    Of which: Intermediate consumption of market establishments 225224227212212
   Taxes, payableD501110
  Depreciation (Consumption of fixed capital)P51c3,1853,0773,1053,1513,071
    Of which: Depreciation by market establishments 402384385389397
  Interest (excluding FISIM)D413,4124,9215,8887,1577,657
  SubsidiesD31,8891,7891,5841,5481,508
   Product subsidiesD311,2221,0831,0601,035960
   Other subsidies on productionD39667706524513548
  Social benefitsD62 + D63128,84828,77328,79629,40628,603
   Social benefits in cashD6224,72224,31324,32624,67024,008
   Social benefits in kind (via market producers)D6314,1264,4604,4704,7374,594
  Other current transfersD72,7042,5202,4292,4522,717
   Net non-life insurance premiumsD716273739191
   Current international cooperationD74575547547546467
   Miscellaneous current transfersD75757733660625643
   VAT and GNI based EU budget contributionD761,3101,1671,1501,1901,516
    VAT-based EU own resourcesD761163194194191194
    GNI-based EU own resourcesD7621,1479739569991,321
  Capital transfersD96,14337,1308,2011,6661,000
   Investment grantsD921,7471,3021,0811,3861,000
   Other capital transfersD994,39635,8287,1212800
           
 Net acquisition of non-financial assetsP5 + NP - P51c3,0672,3691,027272-676
  = Gross investment in non-financial assetsP5 + NP6,2535,4464,1323,4232,394
   Gross fixed capital formationP516,2545,5264,0213,3403,034
   Net acquisition of stocksP52-1-801118383
   Net acquisition of unproduced assetsNP0000-723
  - Consumption of fixed capitalP51c-3,185-3,077-3,105-3,151-3,071
           
Net expenditure on current goods and servicesP3 excl. D63129,65026,43726,11125,92225,956
 = OutputP134,22631,72131,27430,84830,417
 - Sales of goods and services P11+P12+P131-4,576-5,284-5,163-4,926-4,461
   Market output (sales of market establishments)P11-907-877-905-969-1,032
   Output for own final useP12-64-58-58-38-33
   Incidental sales and fees of non-market establishmentsP131-3,605-4,349-4,200-3,920-3,396
           
Final consumption expenditureP333,77630,89730,58130,65930,550
 = Net expenditure on current goods and servicesP3 excl. D63129,65026,43726,11125,92225,956
 + Social transfers in kind via market producers D6314,1264,4604,4704,7374,594
made up of       
 Individual consumption (= social transfers in kind)P31 (= D63)22,42921,31921,02220,87520,906
  Social transfers in kind (via market producers)D6314,1264,4604,4704,7374,594
  Social transfers in kind (provided directly by government)D63218,30316,85816,55216,13816,312
 Collective consumption (= actual final consumption of government)P3211,3479,5789,5599,7849,644
           
Total social transfersD62 + D6347,15145,63145,34845,54444,914
 Social benefits in cashD62 24,72224,31324,32624,67024,008
 Social transfers in kind (= individual consumption)D6322,42921,31921,02220,87520,906
Table 5 General Government financial transactions
     €million
 20092010201120122013
DescriptionESA2010 code     
 Net lending (+) / net borrowing (-)B.9-23,357-53,467-21,588-13,901-9,967
equals       
Net acquisition of financial assets ΔA2,998-11,4994,0765,710-5,050
EDP debt instruments F2 + F3 + F45,266-8,9352784,400-3,933
 Currency and deposits F21,021-11,221-3025,867-1,249
Debt securities F34,1231,857-648957-394
Short-term F3143-37-361,0342,697
Long-term F324,0801,894-612-77-3,091
Loans F41224291,228-2,424-2,290
Short-term loans F41008851,069349
Long-term loans F42122429343-3,493-2,639
Equity and Investment Fund Shares F5-2,357-2,3883,7011,827-1,337
Other financial assets F6 + F7 + F8 89-17697-517220
Insurance, Pensions and Standardised Guarantees F6100-10
Financial derivatives and Employee Stock Options F716254-271-75196
Other accounts receivable/payableF872-430368-44124
less       
Net incurrence of liabilities ΔL26,35541,96825,66419,6114,917
EDP debt instruments F2 + F3 + F426,13040,85225,74819,2975,708
Currency and deposits F21,3953,4222,8933,802-30,707
Debt securities F324,7406,178-8,865-7,64625,760
Short-term F31-5,338-13,175-3,494-1,279-160
Long-term F3230,07819,353-5,371-6,36725,920
Loans F4-531,25231,72023,14110,655
Short-term loans F4125028-1651,337-458
Long-term loans F42-25531,22431,88521,80411,113
Other liabilities F5 + F6 + F7 + F8 2251,116-84314-791
Equity and Investment Fund Shares F500000
Insurance, Pensions and Standardised Guarantees F60001-1
Financial derivatives and Employee Stock Options F700300
    Other accounts receivable/payable F82251,116-87313-790
Table 6 General Government: detailed breakdown of net worth 
            €million
DescriptionESA2010 code20092010201120122013
        
General Government balance sheet      
             
 Net worth at market value, excluding pension liabilitiesNW46,2985,586-19,638-50,344-57,601
 equals      
  Non-financial assets at market valueNFA88,37584,41285,04387,05888,575
 plus      
  Financial net worth at market value, excluding pension liabilitiesFNW-42,077-78,826-104,681-137,402-146,176
  equals      
   Financial assets at market valueFA72,68961,67688,13892,07893,731
    EDP debt instrumentsF2 + F3 + F441,98132,87454,87458,44554,603
     Currency and depositsF229,98319,02018,99025,01823,767
     Debt securitiesF38,70010,1147,9199,47010,450
      Short-termF318549131,0463,744
      Long-termF328,61510,0657,9078,4246,706
     LoansF43,2983,74027,96523,95720,386
      Short-term loansF41008851,9542,288
      Long-term loansF423,2983,74027,08122,00318,083
    Equity and Investment Fund SharesF521,78820,13022,97524,60129,865
    Other financial assetsF6 + F7 + F8 8,9208,67210,2899,0329,263
     Insurance, Pensions and Standardised GuaranteesF611100
     Financial derivatives and Employee Stock OptionsF74106061,6948981,136
     Other accounts receivable/payableF88,5098,0658,5948,1348,127
  less      
   Liabilities at market valueL114,766140,502192,819229,480239,907
    EDP debt instrumentsF2 + F3 + F4108,335132,934182,260218,855231,798
     Currency and depositsF210,30813,71158,38862,09931,356
     Debt securitiesF394,66084,04885,18294,274126,288
      Short-termF3120,4567,2313,7962,5722,423
      Long-termF3274,20476,81781,38691,703123,865
     LoansF43,36735,17538,69062,48274,154
      Short-term loansF417077355691,9071,468
      Long-term loansF422,66034,44138,12160,57572,671
    Other liabilitiesF5 + F6 + F7 + F86,4317,56810,55910,6258,109
     Equity and Investment Fund SharesF500000
     Insurance, Pensions and Standardised GuaranteesF600010
     Financial derivatives and Employee Stock OptionsF716382,9742,7271,001
     Other accounts receivable/payableF86,4157,5307,5857,8977,108
             
             
  Memo: Estimated pension liabilities of government 116,000116,000116,00098,00098,000
             
 Memo: Net worth, including pension liabilities -69,702-110,414-135,638-148,344-155,601
             
  Contingent liabilities 287,559163,376148,537120,60661,427
   Guarantees 282,617158,327143,488115,55756,182
   Off-balance sheet PPPs 4,9425,0495,0495,0495,245
             
 Memo: Net worth, including pension liabilities and contingent liabilities -357,261-273,791-284,174-268,950-217,028
             
Change in net worth of government      
             
 Opening net worth 74,47646,2985,586-19,638-50,344
             
 Change in net worth due to transactions -20,289-51,098-20,561-13,629-10,643
  Net acquisition of non-financial assets P5 + NP - P51c3,0672,3691,027272-676
  Net lending/net borrowingB9-23,357-53,467-21,588-13,901-9,967
   = Net acquisition of financial assets 2,998-11,4994,0765,710-5,050
   - Net incurrence of liabilities -26,355-41,968-25,664-19,611-4,917
             
 Change in net worth due to other economic flowsKx-7,88910,386-4,662-17,0783,386
  Other changes in non-financial assets -11,722-6,332-3961,7422,194
  Other changes in financial net worth 3,83416,718-4,267-18,8201,193
   = Other changes in financial assets 3,07748622,386-1,7706,703
     EDP debt instruments -65-17221,722-82991
     Equity and Investment Fund Shares 3,101730-856-2016,601
     Other financial assets 41-721,520-74011
   - Other changes in liabilities 75716,232-26,653-17,050-5,510
     EDP debt instruments 62916,253-23,578-17,298-7,235
     Other liabilities 128-21-3,0752481,725
             
             
Closing net worth 46,2985,586-19,638-50,344-57,601
Table 7 General Government Gross and Net Debt  
         €million
DescriptionESA2010 code20092010201120122013
          
General Government Debt      
          
  Debt instrument liabilities at market value 108,335132,934182,260218,855231,798
  + Difference between face value and market value -3,79511,2297,851-8,629-16,248
          
Gross General Government Debt (face value)GGDebt104,540144,163190,111210,226215,550
By category:      
 Currency and deposits F210,30713,70858,38662,09231,356
 Debt securitiesF391,39196,31794,00187,285112,660
  Short-termF3120,4437,2033,7772,5352,389
  Long-termF3270,94889,11490,22484,750110,270
 LoansF42,84234,13837,72360,84971,534
  Short-termF417077355691,9071,468
  Long-termF422,13533,40337,15458,94270,066
          
less EDP debt instrument assetsF2 + F3 + F441,98132,87454,87658,44554,588
 By category:      
 Currency and deposits F229,98319,02018,99025,01823,767
 Debt securitiesF38,70010,1147,9209,47010,450
  Short-termF318549131,0463,744
  Long-termF328,61510,0657,9078,4246,706
 LoansF43,2983,74027,96623,95720,371
  Short-termF41008851,9542,288
  Long-termF423,2983,74027,08122,00318,083
          
 Net General Government Debt (face value)GGNetDebt62,559111,289135,235151,781160,962
 By category:      
 Currency and deposits F2-19,676-5,31239,39637,0747,589
 Debt securities F382,69186,20386,08177,815102,210
  Short-termF3120,3587,1543,7641,489-1,355
  Long-termF3262,33379,04982,31776,326103,564
 LoansF4-45630,3989,75736,89251,163
  Short-termF41707735-316-47-820
  Long-termF42-1,16329,66310,07336,93951,983
Table 8 Reconciliation of Exchequer Balance to General Government Deficit  
        € million
Description ESA2010 code20092010201120122013
       
Exchequer balance -24,641-18,745-24,918-14,892-11,503
       
Deduct cash inflows which do not increase financial net worth -3-382-62-13-2,714
Inflows from sale or redemption of financial assets -3-382-62-13-2,710
Incurrence of Exchequer liability to Central Bank for notes and coins in circulation 0000-5
       
Exclude cash outflows which do not reduce financial net worth 316507,3352,2672,316
Acquisition of financial assets 16424,8182,2672,303
Repayment of promissory notes notional loan principal 002,517013
Redemption of Exchequer liability to Central Bank for notes and coins in circulation 309000
       
Impact on financial net worth of Exchequer cash transactions -24,613-18,477-17,645-12,638-11,901
       
Adjust for impact of non-cash revenue and disposals of non-financial asset (+) -203-181719-646807
Difference between Exchequer cash tax revenue and time-adjusted Revenue Net Receipts -331-20555-185154
Receipts due from EU (Agriculture grants, Cohesion Fund, ESF and ERDF) 129-16236-11-41
Accrual of interest due on contingent capital assets assigned to banks 001280-44
Licence sales 000-450738
Other accrued revenue 00000
       
Adjust for impact of non-cash expenditure (-) -1,066-33,169413-218188
Capital transfers to financial institutions financed by promissory notes 0-30,8500013
Difference between interest paid and accrued -344-1,273146-21378
Difference between Exchequer cash issues and accrued net spending of departments and offices 304318102-133-4
Other accrued expenditure -1,027-1,364164128101
       
Surplus/Deficit of ExchequerB9_exchequer-25,882-51,827-16,514-13,502-10,906
       
Surplus/Deficit of extra-budgetary bodies, funds and accounts consolidated with Exchequer -2,143-313-266146-106
Social Insurance Fund -2,529-831-192-1-4
Bank Guarantee Scheme receipts - special account 439-259-3-67-167
Capital Services Redemption Account 0600-60000
Small Savings Reserve Fund -2430000
Other Extra-Budgetary Funds 191137429655
Health Service Executive 171167155-8211
       
Surplus/Deficit of Budgetary Central GovernmentB9_bcg-28,025-52,140-16,779-13,356-11,012
       
Surplus/Deficit of other Central Government bodies 4,682-1,412-4,767-4511,001
National Pensions Reserve Fund 4,433-1,702-4,373334592
Non-market State corporations and agencies 221288-384-779382
Voluntary and joint board hospitals 282-9-627
       
       
Surplus/Deficit of Central Government B9_S1311-23,343-53,552-21,546-13,808-10,011
       
Surplus/Deficit of Local Government B9_S1313-1385-42-9344
       
Surplus/Deficit of General Government B9_S13-23,357-53,467-21,588-13,901-9,967
Table 9 Reconciliation of National Debt to General Government Debt     
            € million
Description20092010201120122013
Audited National Debt75,15293,445119,082137,632173,946
Composed of     
 Gross National Debt96,968109,609136,774161,482197,547
  Medium/long term debt71,52890,786119,625144,524178,721
   Irish Government Bonds71,07690,70585,91288,455111,609
   EU/IMF Programme Funding0033,67653,20061,350
   EIB and bilateral loans004833,0714,971
   Miscellaneous (including derivatives)45282-445-202792
  Short term debt18,0448,4845,6033,4763,320
   Commercial Paper7,0358273481,299482
   Treasury Bills8,3905,93901,0140
   Borrowings from Funds under the control of the Minister for Finance1,7831,5241,696786676
   Miscellaneous (including EFSF interim funding in 2011)8351953,5593772,163
  State Savings Schemes7,39610,33911,54613,48215,505
Less Liquid assets-21,816-16,164-17,692-23,850-23,601
Reverse deduction of liquid assets and EFSF prepaid margin held by Exchequer21,81616,16418,22224,38024,131
Outstanding principal value of promissory notes030,85028,33325,261215
Liability for coinage in circulation674673694670675
Accrual adjustments (Small Savings Reserve Fund)346368464548604
Adjustment from discounted to nominal value5572464
Gross treatment of collaterals0111701,431948
 Other adjustments (repurchase agreements, OPW contracts and exclusion of financial derivatives)12-21-17948
Unconsolidated Exchequer Debt (Maastricht definition)98,055141,562166,951189,938200,569
of which: Liabilities to other Central Government bodies2,3892,4402,6152,3012,316
Exchequer contribution to Central Government debt95,666139,122164,336187,637198,253
of which: Liabilities to Local Government 1932193029
Exchequer contribution to General Government debt95,646139,090164,317187,607198,224
Housing Finance Agency (HFA)     
Gross debt of HFA4,9414,5124,4144,5014,423
 of which: Liabilities to other Central Government bodies303,6123,8513,9873,711
HFA contribution to Central Government debt4,911900563514712
of which: Liabilities to Local Authorities182220179119286
HFA contribution to General Government debt4,729679384394427
Other Central Government     
 IBRC Consolidated0020,92717,79712,660
Liabilities of Post Office Savings Bank Fund to Post Office Savings Bank1,8922,3282,5062,7742,646
Health Service Executive and Voluntary Hospitals187145149138138
National Oil Reserves Agency444336327258166
Irish Rail12825172525
 Westlink buyout: imputed loan from National Toll Roads to National Roads Authority510460410360310
 All other bodies3039433557
Other bodies' contribution to Central and General Government debt3,1913,33224,37821,38716,002
Total Central Government debt103,768143,354189,277209,538214,968
 of which: Liabilities to Local Government201252197149314
Central Government contribution to General Government debt103,567143,102189,079209,389214,654
Local Government - Local Authorities     
Borrowing from Housing Finance Agency4,5834,4484,3584,4314,306
 Borrowing from other Central Government bodies8778626177
 Other borrowing9721,0721,050866789
Local Authorities' contribution to Local Government debt5,6415,5985,4695,3585,172
 VECs / ETBs1919000
Total Local Government debt5,6605,6175,4695,3585,172
 of which: Liabilities to Central Government4,6864,5564,4384,5214,276
Local Government contribution to General Government debt9741,0621,032837896
           
General Government Debt104,540144,163190,111210,226215,550

Background Notes

 

Introduction

The figures in this release comprise the first publication by the CSO of annual Government Finance Statistics results under the new standards for National Accounts (ESA 2010).

National accounts are compiled in the EU according to the European System of National and Regional Accounts (ESA) framework. In 2014, the new ESA 2010 framework replaced the previous ESA 95 version and all EU member states were required to adopt ESA 2010 by September 2014.  Quarterly Government Finance Statistics were published for the first time according to the new standard in July of this year.

The data published in this series are consistent with the General Government Deficit and Debt levels reported at end-September under the EU regulation governing the Excessive Deficit Procedure.   Consequently they may not always be fully aligned with the National Income and Expenditure and related publications such as the Institutional Sector Accounts.

Impact of ESA 2010

The impact of ESA 2010 can be seen in the overall deficit and debt figures and also on the components of these two measures.  Changes which impact on debt and deficit can be broken into three categories:

  • Sector classification changes
  • Changes in the treatment of the assets and liabilities of pension schemes where pension obligations are transferred to government
  • Changes in the treatment of interest on swaps and forward rate agreements (FRAs).

Sector classification changes

The classification change under ESA 2010 with a material debt/deficit impact is the classification of Irish Bank Resolution Corporation (IBRC) in the General Government sector with effect from mid-2011.  This results from a technical change from the ESA 95 standard where entities that were classified as Monetary Financial Institutions were by definition excluded from the General Government sector.  This automatic exclusion no longer applies under ESA 2010 - see http://epp.eurostat.ec.europa.eu/portal/page/portal/government_finance_statistics/documents/IE-Classification_Irish_Bank_Resolution_Corp-ESA2010.pdf.

The reclassification applies from the date of the merger of Anglo Irish Bank and Irish Nationwide Building Society on 1 July 2011.  This event took place following approval by the European Commission of a joint restructuring plan for Anglo Irish Bank and Irish Nationwide Building Society, which required the merger of the banks, the sale of their deposit books, and the orderly work-out of the merged loan book over a period not to exceed 10 years (see http://europa.eu/rapid/press-release_IP-11-801_en.htm).

Impact of reclassification on deficit

 

2011

2012

 

2013

 

GG Deficit impact

 (% of GDP; - implies deficit is worsened in period, + implies deficit improvement)

-0.2

-0.4

0.7

 

Impact of reclassification on debt

 

Q4 2011

Q4 2012

Q4 2013

GG Gross Debt impact (% of GDP; + implies debt increase )

12.2

10.3

7.2

GG Net Debt impact (% of GDP; + implies debt increase)

-1.8

-0.2

-0.4

IBRC’s own surplus/deficit for all periods since Q3 2011 is now included in the line“Non-market State corporations and agencies” in Table 8 of this release.  In ESA 2010 the payments under the Eligible Liabilities Guarantee Scheme arising from the liquidation of IBRC are treated as intra-government transfers rather than government expenditure resulting in the improved deficit position for 2013 compared to that reported under ESA 95.

Transfer of pension obligations to government

Under ESA 95, when government assumed the pension liabilities of the pension fund of a corporation  the transfer of assets of the fund at the time of the transfer to government was treated as a lump sum payment which contributed to government revenue for the period in which the transfer took place and therefore improved the deficit for the period.  Under ESA 2010, in the case where the assets and liabilities of the funded pension scheme are equal, such a transfer is now treated as a financial transaction with no impact on the government deficit.  In the case where the liabilities exceed the assets of the scheme, the deficit is now worsened by the difference in the assets and liabilities at the time of the transfer.  An accounts payable liability is recorded in the government accounts at the time of the transfer and as cash payments are made in future periods this liability decreases accordingly.  In the years following the transfer the impact on the deficit is neutral with an imputed revenue offsetting the expenditure incurred.

The impact of this on the Irish accounts can be seen in 2009 and 2010, at which time Government assumed responsibility for the pension schemes of the universities and of a number of semi-state bodies.  Under ESA 95 the transfer of these assets had a positive impact on the deficit in the relevant years (as outlined above).  Under ESA 2010 this impact is now reversed, and an additional deficit impact reflecting the difference between the assets and liabilities of these schemes is included in the revised deficit figures. 

Treatment of lump-sum payment on transfer of assets & liabilities of pension scheme to government – impact on GG Surplus / Deficit (€bn)

2009

2010

ESA 95

+0.6

+1.1

ESA 2010

-0.4

-0.4

Change in previously recorded surplus/deficit

-1.0

-1.5

In later years the imputed revenue results in a small deficit improvement under ESA 2010 when compared with the recording under ESA 95 which reflected the expenditure incurred but no imputed revenue for those years.

Treatment of 2010 AIB capital injection

The 2010 deficit has been revised in the amount of €3,818 million, resulting from a re-examination of the treatment of an injection of €3,700 million made by the Irish Government through the NPRF in 2010. At the time this injection was recorded as a financial transaction, namely the acquisition of equity in AIB, with no impact on the GG Deficit. Subsequently, during 2011, this shareholding was devalued to zero, again with no impact on the deficit, as revaluations do not impact the deficit.

As part of the ESA 2010 transition, a review of Government transactions related to the financial crisis has been undertaken. The CSO has determined, in consultation with Eurostat, that due to the timing of the devaluation of the AIB shareholding, it would be correct to re-classify this injection (along with the reinvestment of a further €118 million of fees and other income related to this shareholding which had also been treated initially as a financial transaction) as a capital transfer, impacting the deficit in 2010. The total change to the 2010 deficit, therefore, is to worsen it by €3,818 million or 2.3% of GDP.

Changes in the treatment of interest on swaps and forward rate agreements

Under ESA 95 the government deficit data related to the EDP (EDP B.9) differed from the deficit according to ESA95 (B.9) by the inclusion in the interest calculation of flows relating to swaps and forward rate agreements.  This difference is now eliminated under ESA 2010 with the EDP concept of interest being aligned with the ESA concept – i.e. no adjustment for swaps.

The item Net derivative flows on debt interest swap contracts continues to be shown in Table 1 of this release as a memorandum item.

ESA 2010 changes not affecting deficit and debt levels:

Recording of payable tax credits

Payable tax credits arise where (i) a tax credit can be awarded to non-taxpayers as well as to tax payers or (ii) where the tax relief to taxpayers exceeds their liability and the beneficiary receives the excess. 

Under ESA 95 tax revenues were reported net of these amounts. Under ESA 2010 the amounts of these payable tax credits must now be recorded as part of gross tax revenues and a corresponding expenditure must also be recorded.  There is consequently an increase in both total revenue and total expenditure with no impact on the GG Surplus/Deficit.

In Ireland there are currently two tax credits which fall into this category – mortgage interest relief and health insurance relief.   The payment of a ‘top-up’ of 25% of the total deposit to holders of Special Incentive Savings and Investment Scheme (SSIA) accounts under the conditions set out in the scheme are also recorded as payable tax credits for the relevant period as are those relating to the interim Health Insurance Levy (age related) which applied from 2009 to 2012.

Other changes

The value of the stock of non-financial assets of General Government has been revised upwards since previous results.  This has mainly resulted from the classification of Local Authority housing stock to the Government sector which had previously been allocated to the household sector (S.14).  This revision has had a significant effect on the net worth figure previously reported.  It should be noted that this measure is currently published by relatively few countries.  The CSO introduced the concept of net worth to our GFS publication at the outset on an experimental basis and have continued to work to improve this estimate.

Institutes of Technology have been re-classified from the Local Government sub-sector to Central Government.  These institutes had originally been classified within Local Government due to their historic relationship with the VECs.  The reclassification is due to the direct relationship that now exists between the IoTs and the Higher Education Authority which is part of Central Government.  There is no impact of the General Government debt or deficit as a result of this reclassification, the impact is seen only at sub-sector level.  The IoTs are included within the line “Non-market State corporations and agencies” in Table 8 of this release.

Following a review by the CSO it has been determined that the Social Insurance Fund should not be classified as separate subsector of Government but should be included within the Central Government subsector. This change has been implemented with retrospective effect to the entire GFS data series.  Details of the rational for the reclassification can be seen in the CSO Register of Public Sector Bodies at:

http://www.cso.ie/en/surveysandmethodology/nationalaccounts/

Revisions to GDP

The GDP figures used in the current publication are consistent with those published in the National Income and Expenditures and Quarterly National Accounts releases, and reflect the increased GDP levels arising from the adoption of ESA 2010.

Pension Liabilities

The estimated pension liability of government (the accrued liability in respect of Public Service occupational pensions) is a contingent liability of government and does not form part of the ESA accounts of general government.  It is shown in this release as a memorandum item.  The value shown for years 2009-2011 of €116 billion was calculated by the Comptroller and Auditor General.    The value of this liability is reduced by €18 billion to €98 billion with effect from 2012. This follows an actuarial valuation carried out by the Department of Public Expenditure and Reform.   The main reasons for the reduction were the pay and pension cuts since 2009 and the freeze in pay and pension rates until after the Haddington Road Agreement.  Details on this updated estimate can be accessed at: http://www.per.gov.ie/public-service-pensions-accrued-liability/.

Government Finance Statistics – Concepts and Definitions

Government Finance Statistics (GFS) form the basis for fiscal monitoring in Europe, in particular in relation to the Excessive Deficit Procedure (EDP). 

European GFS, including EDP statistics are currently produced according to the legally binding accounting rules of the European System of Accounts 1995 (ESA95).  The new ESA 2010 standard on which the data in this release are based came into force in September 2014.  The Manual on Government Debt and Deficit (MGDD) provides further guidance on the implementation of ESA95 / ESA 2010 in the context of GFS. 

EU Member States are required to report government deficit/surplus and debt data biannually under the EDP (before 1 April and 1 October in year N) for years N-4 to N-1 calendar years as well as a forecast for the current year. The data are reported in harmonised tables, which provide a consistent framework for the presentation of this data by Member States. The tables provide a structure for linking national budgetary aggregates with government deficit and debt.

Detailed statistics on Government revenue and expenditure are also provided to Eurostat under the ESA transmission programme. These data are available on the Eurostat website.

Definition of general government and its subsectors

The general government sector of the economy, is defined in ESA2010 paragraph 2.111: as “institutional units which are non-market producers whose output is intended for individual and collective consumption, and are financed by compulsory payments made by units belonging to other sectors, and institutional units principally engaged in the redistribution of national income and wealth.” General government comprises the sub-sectors central government (S.1311), state government (S.1312 – which does not apply in Ireland), local government (S.1313), and social security funds (S.1314).

As part of the GFS production process the CSO is required to define the General Government and public sectors for Ireland. In this context, the public sector includes all bodies that are directly or indirectly controlled by a Government department or office, or by a local authority.  General Government, in turn, includes all public sector bodies that are also mainly financed by Government bodies.  The decision rules governing the classification of bodies to the public and General Government sectors are set out in detail in the Manual on Government Deficit and Debt.  A detailed explanation of the application of these rules and the most up-to-date list (reference year 2013) of public sector bodies (including general government bodies) for Ireland are shown at:

http://www.cso.ie/en/surveysandmethodology/nationalaccounts/.

General Government Deficit/Surplus (GG Deficit/Surplus) is the standard European measure of the fiscal balance, which is used to monitor compliance with the Stability and Growth Pact.

This measure is by definition equal to both Total Revenue (TR) less Total Expenditure (TE), and Net Acquisition of Financial Assets less Net Incurrence of Liabilities. In order to respect this accounting identity, a technical adjustment is made to the level of transactions recorded in liability category F32 (long-term debt securities) to eliminate any statistical discrepancy between the two approaches to the calculation of GG Deficit/Surplus. This adjustment has no impact on gross debt, net debt or net worth.

General Government Gross Debt (GG Debt) is defined in the EU regulations implementing the Maastricht Treaty as the gross debt liabilities of the consolidated General Government sector, at nominal value.

‘Gross’ means that the value of any financial assets held by General Government cannot be deducted from the GG Debt. In Ireland’s case, this means that the liquid assets which are deducted from the ‘gross’ National Debt in arriving at the audited National Debt cannot be deducted from the GG Debt.

‘Debt liabilities’ are defined as the ESA 2010 categories AF.2 (Currency and Deposits), AF.3 (Debt Securities), and AF.4 (Loans).

This definition excludes liabilities in derivatives, equity liabilities, pension and insurance liabilities and accounts payable.

‘Consolidated’ means that any money owed by one entity within General Government to another is

excluded from the total GG Debt.

‘Nominal value’ is defined in the governing regulation as face value.  If debt is sold at a discount, it is the undiscounted value of the instrument, rather than the amount actually received, that is shown in the GG Debt. In other statistical contexts, ‘nominal value’ means face value plus any interest accrued but not paid; however, such interest is excluded from GG Debt by definition.

There is no change in the definition of GGDebt under ESA 2010.

General Government Net Debt is a measure produced in accordance with the methodology of the IMF/World Bank Public Sector Debt Statistics Guide, by subtracting from the GG Gross Debt figure the value of the financial assets corresponding to the categories of financial liabilities which comprise GG Gross Debt.

General Government Net Worth is calculated as the sum of financial and non-financial assets of General Government less financial liabilities. 

Detailed codes and technical definitions can be seen in the ESA 2010 manual available at http://epp.eurostat.ec.europa.eu/portal/page/portal/esa_2010/introduction . A listing of some of the main items included in this release is shown below

Main Components of General Government Expenditure and Revenue

P.2       Intermediate consumption – value of goods and services used in the process of production, excluding fixed assets

P.5       Gross capital formation

P.51g   Gross fixed capital formation - acquisitions, less disposals, of fixed assets during a given period plus certain additions to the value of non-produced assets realised by productive activity. Fixed assets are tangible or intangible assets produced as outputs from processes of production that are themselves used repeatedly, or continuously, in processes of production for more than one year

P.51c   Consumption of fixed capital - the amount of fixed assets used up, during the period under consideration, as a result of normal wear and tear and foreseeable obsolescence, including a provision for losses of fixed assets as a result of accidental damage which can be insured against.

P.52     Changes in inventories

P.53     Acquisitions less disposals of valuables

D.1      Compensation of employees – the total remuneration of government employees

D.29    Other taxes on production (payable) all taxes that enterprises incur as a result of engaging in production, independently of the quantity or value of the goods and services produced or sold. These include taxes on use or ownership of land or buildings, taxes on use of fixed assets, taxes on total wage bill and payroll, taxes on international transactions related to production.

D.3      Subsidies (payable) - current unrequited payments which general government or the institutions of the European Union make to resident  producers, with the objective of influencing their levels of production, their prices or the remuneration of the factors of production

D.4      Property income accrues when the owners of financial assets and natural resources put them at the disposal of other units of the economy. The income payable for the use of financial assets is called investment income, while that payable for the use of a natural resource is called rent. Property income is the sum of investment income and rent.

D.41    Interest receivable by the owners of a financial asset for putting it at the disposal of another institutional unit. Applies to deposits (AF.2), debt securities (AF.3), loans (AF.4) and other accounts payable (AF.8)

D.5      Current taxes on income, wealth, etc, (payable)  - all compulsory, unrequited payments, in cash or in kind, levied periodically by general government and by the rest of the world on the income and wealth of units in the economy, and some periodic taxes which are assessed neither on income nor wealth

D.6      Social contributions - transfers to households, in cash or in kind, intended to relieve them from the financial burden of a number of risks or needs.

D.7      Other current transfers – includes VAT and GNI based EU budget contributions, current transfers between subsectors of government, current international co-operation and current transfers to households and non-profit institutions.

D.9      Capital transfers - involve the acquisition or disposal of an asset, or assets, by at least one of the parties to the transaction.  Includes capital taxes and investment grants.

 

Categories of Financial Flows

F.1       Monetary gold and special drawing rights (SDRs)

            F.11     Monetary gold

            F.12     Special drawing rights (SDRs)

F.2       Currency and deposits

            F.21     Currency

            F.22     Transferable deposits

            F.29     Other deposits

F.3       Debt securities

            F.31     Short-term

            F.32     Long-term

F.4       Loans

            F.41 - Short-term loans

            F.42 - Long-term loans

F.5       Equity and investment fund shares

            F.51 Equity

            F.52 Investment fund shares/units

F.6       Insurance pension and standardised guarantee schemes

F.7       Financial derivatives and employee stock options

            F.71     Financial derivatives

            F.72     Employee stock options

F.8       Other accounts receivable/payable

            F.81     Trade credits and advances

            F.89     Other

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