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CSO statistical release, , 11am

Government Finance Statistics Quarterly Results

Quarter 1 2014

 General Government Deficit, Gross Debt and Net Debt Q1 2014
 General Government Surplus/Deficit General Government Gross Debt General Government Net Debt
 €m% quarterly GDP €m% annualised GDP €m% annualised GDP
2013 Q1-3,326-7.9 218,358125.7 154,40888.9
2013 Q2-1,860-4.3 218,678125.2 157,53890.2
2013 Q3-2,814-6.3 218,543124.2 157,53989.5
2013 Q4-2,005-4.5 215,538123.3 160,75192.0
2014 Q1-2,432-5.6 215,048122.2 160,88691.4

Government Deficit of 5.6% of quarterly GDP in Q1 2014

Figure 1  General Government Deficit
go to full release

Government deficit of 5.6% of quarterly GDP in Q1 2014

Ireland’s General Government Deficit (GG Deficit) amounted to €2,432 million in the first quarter of 2014 representing 5.6% of quarterly GDP.  In the corresponding quarter of 2013, the deficit had amounted to €3,326 million or 7.9% of quarterly GDP.

Government revenue for the period at €14,599 million was higher by €736 million than Q1 2013 revenue of €13,863 million mainly due to increased revenue from taxes and social contributions.  Government expenditure decreased by €158 million compared to Q1 2013, standing at €17,031 million in Q1 2014, with a decrease observable in most categories of expenditure (Table 1).

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

Gross Government Debt at 122.2% of GDP at end Q1 2014

Ireland’s General Government Gross Debt (GG Debt) stood at €215.0 billion or 122.2% of annualised GDP at the end of Q1 2014, compared to a level of €215.5 billion or 123.3% of GDP at the end of the previous quarter.

General Government Net Debt amounted to €160.9 billion in Q1 2014, or 91.4% of GDP compared to €160.8 billion or 92.0% of GDP in Q4 2013 (Table 2). 

The data published in this release are the CSO’s first estimate of Government Deficit and Debt according to the new standards for National Accounts (ESA 2010).  They will not be subject to the normal verification processes of the Excessive Deficit Procedure by Eurostat until September 2014.  They should, therefore, be regarded as provisional.

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.

 

 

GG Gross DebtGG Net Debt
Q1 201074.646.5
Q2 201074.852.1
Q3 201083.859.8
Q4 201087.467.5
Q1 201194.468.3
Q2 201195.370.7
Q3 201111277.4
Q4 2011111.179
Q1 2012113.481
Q2 2012117.585.4
Q3 2012123.686.4
Q4 2012121.787.8
Q1 2013125.788.9
Q2 2013125.290.2
Q3 2013124.289.5
Q4 2013123.392
Q1 2014122.291.4
Table 1 General Government transactions: revenue, expenditure, financing and deficit              
                     €million
DescriptionESA2010 code2010 Q12010 Q22010 Q3 2010 Q42011 Q12011 Q22011 Q3 2011 Q42012 Q12012 Q22012 Q3 2012 Q42013 Q12013 Q22013 Q32013 Q42014 Q1
   
General Government transactions                  
   
RevenueTR12,72013,42013,03516,46013,05513,51314,13616,52913,48114,44714,53016,49913,86315,29814,80916,82114,599
Taxes and social contributionsD2 + D5 + D91 + D6111,21211,12511,49613,74211,52111,03512,31814,10211,89311,66812,65014,50812,30012,30113,22314,96913,137
TaxesD2 + D5 + D918,7218,7699,36411,2358,8868,5999,94611,5739,6009,26910,32311,8769,7589,78810,73812,20910,371
Social contributions D612,4912,3562,1322,5072,6352,4372,3722,5282,2932,3992,3272,6322,5422,5142,4852,7612,766
Sales of goods and servicesP1O1,0979361,0612,1901,1361,2601,2521,5151,0511,1411,2371,4971,0191,1731,1071,187864
Investment incomeD42701,1153373882621,1334885584601,5865933804571,745404532504
Current transfer revenue (excluding taxes)D79463737380635868564540606963587860
Capital transfer revenue (excluding taxes)D9N47181696756222228722610531816185434
                 
ExpenditureTE29,26819,61226,75629,64717,32916,94025,08019,47417,94218,14217,71619,07017,18917,15917,62318,82617,031
ExpenseExpense29,00919,28926,47228,09417,28617,04324,96318,45517,66417,96118,29218,66917,47917,48518,11918,41917,233
Compensation of employeesD14,8294,6364,7645,0644,8764,6824,7494,8684,9204,6474,6834,6564,8484,7474,5594,4984,698
Use of goods and services plus taxes payableP2 + D5 + D292,1281,9501,8903,1141,9332,2432,2052,3221,8532,0442,1852,3421,7292,0112,1492,4071,696
Depreciation (Consumption of fixed capital)P51c769769769769752752801801788788788788766766766766727
Interest (excluding FISIM)D411,1631,0901,5881,0791,1911,2671,8221,6081,6371,7351,8991,8861,9571,8851,9251,8911,864
SubsidiesD3431386420552363358385478327346368506321339361487305
Social benefitsD62 + D6316,9107,2327,2087,3377,0927,1967,4387,5137,0247,2617,5197,5556,7907,0027,3177,4306,847
Other current transfersD7853559583577784431575692863553571518791577807640840
Capital transfersD911,9252,6689,2519,6012961156,988174253585279418277158236300254
                 
 Net operating balanceNOB-16,290-5,869-13,437-11,634-4,231-3,530-10,827-1,926-4,183-3,514-3,762-2,170-3,616-2,186-3,310-1,598-2,634
                 
Net acquisition of non-financial assetsP5 + NP - P51c2593232841,55442-1041171,019278181-576401-290-326-496407-202
                      
 General Government Surplus/DeficitB9-16,548-6,192-13,721-13,188-4,274-3,426-10,943-2,945-4,461-3,695-3,186-2,571-3,326-1,860-2,814-2,005-2,432
equals                 
Net acquisition of financial assetsΔFA4,598-7,1223,028-8,1768,345-1,882-341-1,9871,4063487,915-3,9906,079-2,543-1,311-7,098-2,109
Debt instrumentsF2 + F3 + F44,584-9,3522,310-6,46811,212-1,644-6,883-2,3481,462-5028,498-5,0766,698-2,600-313-7,569-506
Equity and Investment Fund SharesF56042,129698-2,001-3,7917887,441-737-501,389548327538-1,235-543-1,194
Other financial assetsF6 + F7 + F8 -59010120293924-1,026-8991,098-6-539-588603-646-4812371,014-409
less                 
Net incurrence of liabilitiesΔL21,146-93016,7495,01212,6191,54410,6029585,8674,04311,101-1,4199,405-6831,503-5,093323
Debt instrumentsF2 + F3 + F420,142-1,45616,7935,38211,4041,65910,7421,8604,7614,41111,436-1,33010,091-5831,144-4,73226
Other liabilitiesF5 + F6 + F7 + F8 1,004526-44-3701,215-115-140-9021,106-368-335-89-686-100359-361297
                 
  Memo: Net derivative flows on debt interest swap contracts 3333-33-33-33-33-49-54-55-63-80-58-58-77-69
                      
 General Government Surplus/Deficit (% of quarterly GDP) -40.3-14.8-32.7-32.9-10.5-7.9-25.3-6.8-10.8-8.8-7.3-5.6-7.9-4.3-6.3-4.5-5.6
Table 2 General Government Net Worth, Gross and Net Debt               
                       €million
Description ESA2010 code2010 Q12010 Q22010 Q3 2010 Q42011 Q12011 Q22011 Q3 2011 Q42012 Q12012 Q22012 Q3 2012 Q42013 Q12013 Q22013 Q32013 Q42014 Q1
General Government net worth                  
Net worth at market value, excluding pension liabilitiesNW28,54123,64513,1509,4138,3175,403-19,598-19,737-30,228-37,151-44,413-50,430-53,487-55,921-59,713-57,480-60,934
equals                 
Non-financial assets at market valueNFA87,03885,76584,45384,41284,34084,12384,12685,03285,74786,36586,22787,06487,33287,56587,62888,59388,391
plus                 
Financial net worth at market value, excluding pension liabilitiesFNW-58,497-62,120-71,303-74,999-76,023-78,720-103,724-104,769-115,975-123,516-130,640-137,494-140,819-143,486-147,341-146,073-149,325
equals                 
Financial assets at market valueFA78,97770,27973,20365,50372,41267,20091,26088,05088,99687,79396,07291,98698,42695,22893,66893,82494,269
EDP debt instrumentsF2 + F3 + F446,82137,53839,87032,88342,89940,99558,06754,94255,68654,64063,23558,49463,95161,14061,00554,80254,161
Equity and Investment Fund SharesF523,39424,20725,02023,94819,90917,65423,38522,81923,30923,55723,74824,46026,35826,54524,67029,82631,425
Other financial assetsF6 + F7 + F8 8,7628,5348,3138,6729,6048,5519,80810,28910,0019,5969,0899,0328,1177,5437,9939,1968,683
less                 
Liabilities at market valueL137,474132,399144,506140,502148,435145,920194,984192,819204,971211,309226,712229,480239,245238,714241,009239,897243,594
EDP debt instrumentsF2 + F3 + F4130,042124,446136,509132,934139,635137,374183,530182,260193,798200,711216,247218,855230,611230,573232,430231,786234,995
Other liabilitiesF5 + F6 + F7 + F87,4327,9537,9977,5688,8008,54611,45410,55911,17310,59810,46510,6258,6348,1418,5798,1118,599
                 
Memo: Estimated pension liabilities of government116,000116,000116,000116,000116,000116,000116,000116,00098,00098,00098,00098,00098,00098,00098,00098,00098,000
                 
Memo: Net worth, including pension liabilities-87,459-92,355-102,850-106,587-107,683-110,597-135,598-135,737-128,228-135,151-142,413-148,430-151,487-153,921-157,713-155,480-158,934
                 
Contingent liabilities163,376163,376163,376163,376148,537148,537148,537148,537121,207121,207121,207121,20773,47773,47773,47773,47773,477
                 
 Memo: Net worth, including pension liabilities and contingent liabilities -250,836-255,731-266,226-269,964-256,219-259,134-284,135-284,274-249,435-256,358-263,621-269,637-224,963-227,398-231,190-228,957-232,411
General Government: changes in net worth                  
Opening net worth46,29828,54123,64513,1509,4138,3175,403-19,598-19,737-30,228-37,151-44,413-50,430-53,487-55,921-59,713-57,480
                 
Change in net worth due to transactions-16,290-5,869-13,437-11,634-4,231-3,530-10,827-1,926-4,183-3,514-3,762-2,170-3,616-2,186-3,310-1,598-2,634
Net acquisition of non-financial assets P5 + NP - P51c2593232841,55442-1041171,019278181-576401-290-326-496407-202
Net lending/net borrowingB9-16,548-6,192-13,721-13,188-4,274-3,426-10,943-2,945-4,461-3,695-3,186-2,571-3,326-1,860-2,814-2,005-2,432
                 
Change in net worth due to other economic flowsKx-1,4679732,9427,8963,136616-14,1741,787-6,308-3,409-3,501-3,846559-248-4833,831-820
Other changes in non-financial assets-1,596-1,596-1,596-1,596-114-114-114-1144374374374375585585585580
Other changes in financial assets1,690-1,576-104476-1,436-3,33024,401-1,223-460-1,551364-96361-655-2497,2542,554
Other changes in liabilities-1,5624,1454,6429,0164,6864,059-38,4623,123-6,285-2,295-4,302-4,187-360-152-792-3,981-3,374
                        
Closing net worth 28,54123,64513,1509,4138,3175,403-19,598-19,737-30,228-37,151-44,413-50,430-53,487-55,921-59,713-57,480-60,934
                        
General Government Debt (GGDebt)                  
Debt instrument liabilities at market valueF2 + F3 + F4130,042124,446136,509132,934139,635137,374183,530182,260193,798200,711216,247218,855230,611230,573232,430231,786234,995
+ Difference between EDP face value and market value-5,886-7942,53411,22915,84221,2874,3547,851686-884-5,912-8,629-12,253-11,895-13,887-16,248-19,947
                        
 Gross General Government Debt (EDP face value)GGDebt124,156123,652139,043144,163155,477158,661187,884190,111194,484199,827210,335210,226218,358218,678218,543215,538215,048
                 
less EDP debt instrument assetsF2 + F3 + F4-46,821-37,538-39,870-32,883-42,900-40,995-58,067-54,943-55,686-54,640-63,235-58,494-63,950-61,140-61,004-54,787-54,162
 Net General Government Debt GGNetDebt77,33586,11499,173111,280112,577117,666129,817135,168138,798145,187147,100151,732154,408157,538157,539160,751160,886
   
Closing Net Worth (% of annualised GDP) 17.214.37.95.753.2-11.7-11.5-17.6-21.8-26.1-29.2-30.8-32-33.9-32.9-34.6
Gross General Government Debt (% of annualised GDP)74.674.883.887.494.495.3112111.1113.4117.5123.6121.7125.7125.2124.2123.3122.2
Net General Government Debt (% of annualised GDP) 46.552.159.867.568.370.777.479.08185.486.487.888.990.289.59291.4
Table 3 General Government: detailed classification of revenue and output               
                      €million
DescriptionESA2010 code2010 Q12010 Q22010 Q3 2010 Q42011 Q12011 Q22011 Q3 2011 Q42012 Q12012 Q22012 Q3 2012 Q42013 Q12013 Q22013 Q32013 Q42014 Q1
                       
Total RevenueTR12,72013,42013,03516,46013,05513,51314,13616,52913,48114,44714,53016,49913,86315,29814,80916,82114,599
 Taxes and social contributions 11,21211,12511,49613,74211,52111,03512,31814,10211,89311,66812,65014,50812,30012,30113,22314,96913,137
  TaxesD2 + D5 + D918,7218,7699,36411,2358,8868,5999,94611,5739,6009,26910,32311,8769,7589,78810,73812,20910,371
   Indirect taxes (taxes on production and imports)D24,7013,7485,3274,1834,7713,6135,0174,1974,8573,7485,3934,1895,0313,9525,5804,4565,444
    Taxes on productsD214,2233,2734,8573,7234,2903,1354,5443,7304,3283,2224,8713,6714,5343,3305,0093,8474,687
    of which Value-Added TaxD2112,9331,8683,1472,1202,9661,7482,9312,1103,0501,8603,1492,1613,0251,8123,4342,1003,203
    Other taxes on production D29478475471460482478473467530526522518497621571609757
   Direct taxesD53,9664,9454,0056,9794,0934,9614,8387,2724,7215,4964,8887,4944,7065,8105,1217,5584,898
    Taxes on income, profits and capital gainsD513,7044,6903,7656,7703,8364,7164,1497,0564,4585,2454,1737,2604,4445,5474,3407,2874,613
    Other current direct taxesD59263255240208257245689216263251715234262264780271285
   Capital taxesD915476327423259010521264219321263719529
  Social contributions D612,4912,3562,1322,5072,6352,4372,3722,5282,2932,3992,3272,6322,5422,5142,4852,7612,766
   Actual social contributionsD611 + D6131,8901,7551,5321,9062,0551,8571,7921,9481,6761,7831,7112,0161,8881,8601,8312,1072,112
   Employers' imputed social contributionsD612600600600600580580580580616616616616654654654654654
 Sales of goods and servicesP1O1,0979361,0612,1901,1361,2601,2521,5151,0511,1411,2371,4971,0191,1731,1071,187864
  Sales of market establishments (= market output)P11219219219219226226226226242242242242258258258258258
  Imputed sales related to production of own-use capital assets (= output for own final use)P121414141414141414141414141414141414
  Incidental sales and fees of non-market establishmentsP1318647038271,9568951,0191,0111,2747948859801,241746901834915592
 Investment incomeD42701,1153373882621,1334885584601,5865933804571,745404532504
  Interest (excluding FISIM)D41214193217226250270462378369454408358400318327320313
  DividendsD42569221201621286326180911,13218522581,42676212191
 Current transfer revenueD39 + D79463737380635868564540606963587860
  SubsidiesD3900000000000000000
  Other current transfersD79463737380635868564540606963587860
   Non-life insurance claimsD7244443333333333333
   OtherD7N9060706977605464534237566660557557
 Capital transfer revenueD9N47181696756222228722610531816185434
                       
Output P17,7947,4227,4909,0157,6337,7507,8278,0647,6527,5717,7477,8787,4507,6327,5827,7787,229
 Market output (sales of market establishments)P11219219219219226226226226242242242242258258258258258
 Output for own final useP121414141414141414141414141414141414
 Non-market outputP137,5607,1887,2578,7817,3927,5097,5867,8237,3967,3147,4917,6217,1787,3597,3097,5066,957
  = Non-market compensation of employeesD1_nonmarket4,8154,6214,7495,0494,8614,6674,7344,8544,9064,6334,6694,6414,8334,7334,5454,4834,684
   = Total compensation of employeesD14,8294,6364,7645,0644,8764,6824,7494,8684,9204,6474,6834,6564,8484,7474,5594,4984,698
   - Compensation of employees of market establishmentsD1_market                  
   - Compensation related to production of own-use capital assetsD1_own-use-14-14-14-14-14-14-14-14-14-14-14-14-14-14-14-14-14
  + Non-market intermediate consumptionP2_nonmarket2,0721,8941,8343,0581,8762,1862,1482,2651,8001,9912,1312,2891,6761,9582,0962,3541,643
   = Total intermediate consumptionP22,1281,9491,8903,1141,9322,2422,2042,3221,8532,0442,1852,3421,7292,0112,1492,4071,696
   - Intermediate consumption of market establishmentsP2_market-56-56-56-56-57-57-57-57-53-53-53-53-53-53-53-53-53
   - Intermediate consumption related to production of own-use capital assetsP2_own-use                 
  + Non-market consumption of fixed capitalP51c_nonmarket673673673673656656704704690690690690668668668668630
   = Total consumption of fixed capitalP51c_nonmarket769769769769752752801801788788788788766766766766727
   - Consumption of fixed capital by market establishmentsP51c_market-96-96-96-96-96-96-96-96-97-97-97-97-97-97-97-97-97
   - Consumption of fixed capital related to production of own-use capital assetsP51c_own-use                 
  + Other taxes on production, payable D29_pay00000000000000000
  - Other subsidies on production, receivable D39_rec00000000000000000
Table 4 General Government: detailed classification of expenditure and consumption               
                      €million
DescriptionESA2010 code2010 Q12010 Q22010 Q3 2010 Q42011 Q12011 Q22011 Q3 2011 Q42012 Q12012 Q22012 Q3 2012 Q42013 Q12013 Q22013 Q32013 Q42014 Q1
                       
Total ExpenditureTE29,26819,61226,75629,64717,32916,94025,08019,47417,94218,14217,71619,07017,18917,15917,62318,82617,031
                       
 Expense 29,00919,28926,47228,09417,28617,04324,96318,45517,66417,96118,29218,66917,47917,48518,11918,41917,233
  Compensation of employeesD14,8294,6364,7645,0644,8764,6824,7494,8684,9204,6474,6834,6564,8484,7474,5594,4984,698
   Of which: Related to production of own-use capital assets 1414141414141414141414141414141414
  Use of goods and services plus taxes payableP2 + D5 + D292,1281,9501,8903,1141,9332,2432,2052,3221,8532,0442,1852,3421,7292,0112,1492,4071,696
   Use of goods and services [Intermediate consumption]P22,1281,9491,8903,1141,9322,2422,2042,3221,8532,0442,1852,3421,7292,0112,1492,4071,696
    Of which: Intermediate consumption of market establishments 5656565657575757535353535353535353
   Taxes, payableD500000000000000000
  Depreciation (Consumption of fixed capital)P51c769769769769752752801801788788788788766766766766727
    Of which: Depreciation by market establishments 9696969696969696979797979797979797
  Interest (excluding FISIM)D411,1631,0901,5881,0791,1911,2671,8221,6081,6371,7351,8991,8861,9571,8851,9251,8911,864
  SubsidiesD3431386420552363358385478327346368506321339361487305
   Product subsidiesD31270220285308239246274301219240261315218237258247208
   Other subsidies on productionD3916116613524412411311117610810710819210310210324198
  Social benefitsD62 + D6316,9107,2327,2087,3377,0927,1967,4387,5137,0247,2617,5197,5556,7907,0027,3177,4306,847
   Social benefits in cashD626,0876,1045,7136,3226,2656,0775,9416,4866,1376,0545,8726,5595,9935,8125,7346,4055,599
   Social benefits in kind (via market producers)D6318241,1271,4941,0158261,1191,4971,0278871,2071,6479967971,1891,5831,0251,248
  Other current transfersD7853559583577784431575692863553571518791577807640840
   Net non-life insurance premiumsD711818181818181818232323232323232323
   Current international cooperationD741541391409613065118216961311811148611716210284
   Miscellaneous current transfersD75216210129248183158170220262163133144148138322135148
   VAT and GNI based EU budget contributionD76465191296215453190269238482237234237535300301381586
    VAT-based EU own resourcesD7617629474271304844813940327847472382
    GNI-based EU own resourcesD762389163249173381160221194402198194205457253254358505
  Capital transfersD911,9252,6689,2519,6012961156,988174253585279418277158236300254
   Investment grantsD92424399217318185110163149228220178263253103161145230
   Other capital transfersD9911,5002,2699,0349,28311156,826252436510015524557515524
                       
 Net acquisition of non-financial assetsP5 + NP - P51c2593232841,55442-1041171,019278181-576401-290-326-496407-202
  = Gross investment in non-financial assetsP5 + NP1,0281,0921,0532,3237946489171,8201,0669692121,1894754402701,173525
   Gross fixed capital formationP511,0481,1121,0732,3437666208891,7921,0459481911,1681,1784192491,152909
   Net acquisition of stocksP52-20-20-20-2028282828212121212121212121
   Net acquisition of unproduced assetsNP000000000000-723000-405
  - Consumption of fixed capitalP51c-769-769-769-769-752-752-801-801-788-788-788-788-766-766-766-766-727
                       
Net expenditure on current goods and servicesP3 excl. D6316,6976,4866,4306,8256,4976,4896,5756,5496,6026,4306,5116,3806,4316,4596,4756,5916,365
 = OutputP17,7947,4227,4909,0157,6337,7507,8278,0647,6527,5717,7477,8787,4507,6327,5827,7787,229
 - Sales of goods and services P11+P12+P131-1,097-936-1,061-2,190-1,136-1,260-1,252-1,515-1,051-1,141-1,237-1,497-1,019-1,173-1,107-1,187-864
   Market output (sales of market establishments)P11-219-219-219-219-226-226-226-226-242-242-242-242-258-258-258-258-258
   Output for own final useP12-14-14-14-14-14-14-14-14-14-14-14-14-14-14-14-14-14
   Incidental sales and fees of non-market establishmentsP131-864-703-827-1,956-895-1,019-1,011-1,274-794-885-980-1,241-746-901-834-915-592
                       
Final consumption expenditureP37,5207,6137,9247,8407,3247,6088,0727,5767,4897,6368,1577,3767,2297,6488,0587,6167,613
 = Net expenditure on current goods and servicesP3 excl. D6316,6976,4866,4306,8256,4976,4896,5756,5496,6026,4306,5116,3806,4316,4596,4756,5916,365
 + Social transfers in kind via market producers D6318241,1271,4941,0158261,1191,4971,0278871,2071,6479967971,1891,5831,0251,248
made up of                   
 Individual consumption (= social transfers in kind)P31 (= D63)5,1855,2465,5965,2915,0685,2735,6805,0015,0755,1825,7124,9064,8395,2485,6525,1675,248
  Social transfers in kind (via market producers)D6318241,1271,4941,0158261,1191,4971,0278871,2071,6479967971,1891,5831,0251,248
  Social transfers in kind (provided directly by government)D6324,3614,1194,1024,2764,2424,1544,1833,9744,1873,9754,0653,9104,0424,0594,0694,1424,000
 Collective consumption (= actual final consumption of government)P322,3352,3672,3282,5482,2562,3352,3932,5762,4142,4542,4452,4702,3902,4002,4062,4492,365
                       
Total social transfersD62 + D6311,27211,35011,30911,61311,33311,35011,62111,48711,21111,23611,58411,46510,83211,06011,38611,57210,847
 Social benefits in cashD62 6,0876,1045,7136,3226,2656,0775,9416,4866,1376,0545,8726,5595,9935,8125,7346,4055,599
 Social transfers in kind (= individual consumption)D635,1855,2465,5965,2915,0685,2735,6805,0015,0755,1825,7124,9064,8395,2485,6525,1675,248
Table 5 General Government financial transactions
    €million
 2010 Q12010 Q22010 Q3 2010 Q42011 Q12011 Q22011 Q3 2011 Q42012 Q12012 Q22012 Q3 2012 Q42013 Q12013 Q22013 Q32013 Q42014 Q1
DescriptionESA2010 code                 
 Net lending (+) / net borrowing (-)B.9-16,548-6,192-13,721-13,188-4,274-3,426-10,943-2,945-4,461-3,695-3,186-2,571-3,326-1,860-2,814-2,005-2,432
equals                   
Net acquisition of financial assets ΔA4,598-7,1223,028-8,1768,345-1,882-341-1,9871,4063487,915-3,9906,079-2,543-1,311-7,098-2,109
EDP debt instruments F2 + F3 + F44,584-9,3522,310-6,46811,212-1,644-6,883-2,3481,462-5028,498-5,0766,698-2,600-313-7,569-506
 Currency and deposits F24,551-7,5822,198-10,38811,6151,873-16,1462,3561,7694569,683-6,0418,615-2,414-420-6,8812,316
Debt securities F3-121-1,7851173,646-632-3,6572,819822-1-116-1231,197-860-108333241-123
Short-term F31-46-2-9200-1-8-27-9-301,046945111,750-201
Long-term F32-75-1,7831263,626-632-3,6562,8278498-113-123151-1,805-109332-1,50978
Loans F415415-52742291406,444-5,526-306-842-1,062-232-1,057-78-226-929-2,699
Short-term loans F4100000158459268231-30414454-44-248340301145
Long-term loans F4215415-5274229-185,985-5,794-537-812-1,476-686-1,013170-566-1,230-2,844
Equity and Investment Fund Shares F56042,129698-2,001-3,7917887,441-737-501,389548327538-1,235-543-1,194
Other financial assets F6 + F7 + F8 -59010120293924-1,026-8991,098-6-539-588603-646-4812371,014-409
Insurance, Pensions and Standardised Guarantees F600000000000-100000
Financial derivatives and Employee Stock Options F7099195-40-40-23201-75000164003217
Other accounts receivable/payableF8-5902-175333964-794-8991,09769-539-588604-810-481237982-426
less                   
Net incurrence of liabilities ΔL21,146-93016,7495,01212,6191,54410,6029585,8674,04311,101-1,4199,405-6831,503-5,093323
EDP debt instruments F2 + F3 + F420,142-1,45616,7935,38211,4041,65910,7421,8604,7614,41111,436-1,33010,091-5831,144-4,73226
Currency and deposits F27229269708048333745,590-3,9049392,681-534716-30,613575172-853-2,830
Debt securities F38,816-4,6757,143-5,097-5,193-3,0251,813-2,543-6,015-3,6756,593-4,56839,445-4,998-1,068-7,3941,790
Short-term F31-1,981-7,6411,600-5,153-5,243-1,415343,130-3844831,031-2,4092,317637-1,432-1,682111
Long-term F3210,7972,9665,5435650-1,6101,779-5,673-5,631-4,1585,562-2,15937,128-5,635364-5,7121,679
Loans F410,6042,2938,6809,67515,7644,3103,3398,3079,8375,4055,3772,5221,2593,8402,0403,5151,066
Short-term loans F4165-282-148393-43-175-80133111,257409-340-51-397-24523294
Long-term loans F4210,5392,5758,8289,28215,8074,4853,4198,1749,8264,1484,9682,8621,3104,2372,2853,283972
Other liabilities F5 + F6 + F7 + F8 1,004526-44-3701,215-115-140-9021,106-368-335-89-686-100359-361297
Equity and Investment Fund Shares F500000000000000000
Insurance, Pensions and Standardised Guarantees F6000000000001000-10
Financial derivatives and Employee Stock Options F700000003000000000
    Other accounts receivable/payable F81,004526-44-3701,215-115-140-9051,106-368-335-90-686-100359-360297
Table 6 General Government: detailed breakdown of net worth              
                        €million
DescriptionESA2010 code2010 Q12010 Q22010 Q3 2010 Q42011 Q12011 Q22011 Q3 2011 Q42012 Q12012 Q22012 Q3 2012 Q42013 Q12013 Q22013 Q32013 Q42014 Q1
                     
General Government balance sheet                  
                         
 Net worth at market value, excluding pension liabilitiesNW28,54123,64513,1509,4138,3175,403-19,598-19,737-30,228-37,151-44,413-50,430-53,487-55,921-59,713-57,480-60,934
 equals                  
  Non-financial assets at market valueNFA87,03885,76584,45384,41284,34084,12384,12685,03285,74786,36586,22787,06487,33287,56587,62888,59388,391
 plus                  
  Financial net worth at market value, excluding pension liabilitiesFNW-58,497-62,120-71,303-74,999-76,023-78,720-103,724-104,769-115,975-123,516-130,640-137,494-140,819-143,486-147,341-146,073-149,325
  equals                  
   Financial assets at market valueFA78,97770,27973,20365,50372,41267,20091,26088,05088,99687,79396,07291,98698,42695,22893,66893,82494,269
    EDP debt instrumentsF2 + F3 + F446,82137,53839,87032,88342,89940,99558,06754,94255,68654,64063,23558,49463,95161,14061,00554,80254,161
     Currency and depositsF234,71927,14129,36919,02030,63232,50416,63318,99020,75821,21530,89825,01833,63331,21730,79823,91726,233
     Debt securitiesF38,6466,9237,02910,1148,2894,3747,0857,9198,0698,0217,9269,4708,6108,4878,82110,45010,347
      Short-termF3139382949494840133001,0461,9901,9911,9923,7443,542
      Long-termF328,6076,8857,00010,0658,2414,3267,0457,9078,0668,0217,9268,4246,6196,4966,8296,7066,806
     LoansF43,4563,4743,4723,7493,9784,11734,34928,03326,85925,40424,41124,00621,70821,43621,38620,43517,581
      Short-term loansF41000001586178851,1161,0871,5001,9541,9091,6622,0022,2882,449
      Long-term loansF423,4563,4743,4723,7493,9783,95933,73227,14825,74324,31722,91122,05219,79919,77419,38318,13215,132
    Equity and Investment Fund SharesF523,39424,20725,02023,94819,90917,65423,38522,81923,30923,55723,74824,46026,35826,54524,67029,82631,425
    Other financial assetsF6 + F7 + F8 8,7628,5348,3138,6729,6048,5519,80810,28910,0019,5969,0899,0328,1177,5437,9939,1968,683
     Insurance, Pensions and Standardised GuaranteesF611111111111000000
     Financial derivatives and Employee Stock OptionsF78446165716065753812,2961,6941,3391,4741,5578987947019151,1361,049
     Other accounts receivable/payableF87,9177,9177,7418,0659,0288,1697,5118,5948,6618,1217,5318,1347,3236,8427,0788,0607,634
  less                  
   Liabilities at market valueL137,474132,399144,506140,502148,435145,920194,984192,819204,971211,309226,712229,480239,245238,714241,009239,897243,594
    EDP debt instrumentsF2 + F3 + F4130,042124,446136,509132,934139,635137,374183,530182,260193,798200,711216,247218,855230,611230,573232,430231,786234,995
     Currency and depositsF211,02911,89612,85013,71114,47214,79162,19258,38859,34662,02061,46862,09931,45332,03532,18131,34428,525
     Debt securitiesF3105,03896,29398,71484,04874,74467,62890,87685,18285,91383,12694,73094,274135,234130,577130,009126,288131,281
      Short-termF3118,21710,89112,4977,2312,0897417173,7963,5204,0395,0522,5724,9695,5874,1282,4232,513
      Long-termF3286,82285,40286,21776,81772,65466,88790,15981,38682,39379,08689,67991,703130,264124,991125,880123,865128,768
     LoansF413,97516,25724,94535,17550,41954,95530,46238,69048,53955,56560,04962,48263,92467,96170,24074,15475,189
      Short-term loansF417734903427356915164365695801,8382,2461,9081,8561,4581,2141,4661,556
      Long-term loansF4213,20215,76724,60334,44149,72754,43930,02638,12147,95953,72857,80360,57562,06866,50369,02672,67373,633
    Other liabilitiesF5 + F6 + F7 + F87,4327,9537,9977,5688,8008,54611,45410,55911,17310,59810,46510,6258,6348,1418,5798,1118,599
     Equity and Investment Fund SharesF500000000000000000
     Insurance, Pensions and Standardised GuaranteesF600000000000111100
     Financial derivatives and Employee Stock OptionsF7149973855582,9642,9742,4832,2762,4782,7271,4221,0291,1081,0011,192
     Other accounts receivable/payableF87,4187,9447,9007,5308,7458,4888,4907,5858,6908,3227,9877,8977,2117,1117,4707,1107,407
                         
                         
  Memo: Estimated pension liabilities of government 116,000116,000116,000116,000116,000116,000116,000116,00098,00098,00098,00098,00098,00098,00098,00098,00098,000
                         
 Memo: Net worth, including pension liabilities -87,459-92,355-102,850-106,587-107,683-110,597-135,598-135,737-128,228-135,151-142,413-148,430-151,487-153,921-157,713-155,480-158,934
                         
  Contingent liabilities 163,376163,376163,376163,376148,537148,537148,537148,537121,207121,207121,207121,20773,47773,47773,47773,47773,477
   Guarantees 158,327158,327158,327158,327143,488143,488143,488143,488115,557115,557115,557115,55767,73567,73567,73567,73567,735
   Off-balance sheet PPPs 5,0495,0495,0495,0495,0495,0495,0495,0495,6505,6505,6505,6505,7425,7425,7425,7425,742
                         
 Memo: Net worth, including pension liabilities and contingent liabilities -250,836-255,731-266,226-269,964-256,219-259,134-284,135-284,274-249,435-256,358-263,621-269,637-224,963-227,398-231,190-228,957-232,411
                         
Change in net worth of government                  
                         
 Opening net worth 46,29828,54123,64513,1509,4138,3175,403-19,598-19,737-30,228-37,151-44,413-50,430-53,487-55,921-59,713-57,480
                         
 Change in net worth due to transactions -16,290-5,869-13,437-11,634-4,231-3,530-10,827-1,926-4,183-3,514-3,762-2,170-3,616-2,186-3,310-1,598-2,634
  Net acquisition of non-financial assets P5 + NP - P51c2593232841,55442-1041171,019278181-576401-290-326-496407-202
  Net lending/net borrowingB9-16,548-6,192-13,721-13,188-4,274-3,426-10,943-2,945-4,461-3,695-3,186-2,571-3,326-1,860-2,814-2,005-2,432
   = Net acquisition of financial assets 4,598-7,1223,028-8,1768,345-1,882-341-1,9871,4063487,915-3,9906,079-2,543-1,311-7,098-2,109
   - Net incurrence of liabilities -21,146930-16,749-5,012-12,619-1,544-10,602-958-5,867-4,043-11,1011,419-9,405683-1,5035,093-323
                         
 Change in net worth due to other economic flowsKx-1,4679732,9427,8963,136616-14,1741,787-6,308-3,409-3,501-3,846559-248-4833,831-820
  Other changes in non-financial assets -1,596-1,596-1,596-1,596-114-114-114-1144374374374375585585585580
  Other changes in financial net worth 1282,5694,5389,4923,250729-14,0611,900-6,745-3,846-3,938-4,2831-807-1,0413,273-820
   = Other changes in financial assets 1,690-1,576-104476-1,436-3,33024,401-1,223-460-1,551364-96361-655-2497,2542,554
     EDP debt instruments 2566922-519-1,196-26023,955-777-718-54497335-1,241-2111781,366-135
     Equity and Investment Fund Shares 1,002-1,316115929-248-3,043-1,710171540-1,1411862291,871-351-6405,6992,793
     Other financial assets 432-329-241668-272,156-617-28213481-660-269-93213189-104
   - Other changes in liabilities -1,5624,1454,6429,0164,6864,059-38,4623,123-6,285-2,295-4,302-4,187-360-152-792-3,981-3,374
     EDP debt instruments -1,5654,1404,7308,9574,7033,920-35,4143,130-6,777-2,502-4,100-3,938-1,665-545-713-4,088-3,183
     Other liabilities 35-8859-17139-3,048-7492207-202-2491,305393-79107-191
                         
                         
Closing net worth 28,54123,64513,1509,4138,3175,403-19,598-19,737-30,228-37,151-44,413-50,430-53,487-55,921-59,713-57,480-60,934
Table 7 General Government Gross and Net Debt               
                     €million
DescriptionESA2010 code2010 Q12010 Q22010 Q3 2010 Q42011 Q12011 Q22011 Q3 2011 Q42012 Q12012 Q22012 Q3 2012 Q42013 Q12013 Q22013 Q32013 Q42014 Q1
                      
General Government Debt                  
                      
  Debt instrument liabilities at market value 130,042124,446136,509132,934139,635137,374183,530182,260193,798200,711216,247218,855230,611230,573232,430231,786234,995
  + Difference between face value and market value -5,886-7942,53411,22915,84221,2874,3547,851686-884-5,912-8,629-12,253-11,895-13,887-16,248-19,947
                      
Gross General Government Debt (face value)GGDebt124,156123,652139,043144,163155,477158,661187,884190,111194,484199,827210,335210,226218,358218,678218,543215,538215,048
By category:                  
 Currency and deposits F211,02911,89612,85013,70814,47214,79162,19258,38659,34662,02061,46862,09231,45332,03532,18131,34428,525
 Debt securitiesF399,65795,991101,72996,31791,47189,73196,24194,00187,67684,92890,40887,285124,566120,426118,269112,660114,444
  Short-termF3118,46610,89512,5147,2032,0617287243,7773,4974,0235,0432,5354,9595,5624,1022,3892,461
  Long-termF3281,19285,09689,21589,11489,41189,00395,51790,22484,17980,90585,36584,750119,607114,863114,168110,270111,983
 LoansF413,46915,76524,46434,13849,53354,13929,45037,72347,46152,87958,45860,84962,33966,21768,09271,53472,079
  Short-termF417734903427356915164365695801,8382,2461,9071,8561,4581,2141,4661,556
  Long-termF4212,69615,27424,12233,40348,84253,62329,01537,15446,88151,04256,21258,94260,48464,75966,87970,06970,523
                      
less EDP debt instrument assetsF2 + F3 + F446,82137,53839,87032,88342,90040,99558,06754,94355,68654,64063,23558,49463,95061,14061,00454,78754,162
 By category:                  
 Currency and deposits F234,71927,14129,36919,02030,63232,50416,63318,99020,75821,21530,89825,01833,63331,21730,79823,91726,233
 Debt securitiesF38,6466,9237,02910,1148,2904,3747,0857,9208,0698,0217,9269,4708,6098,4878,82110,45010,348
  Short-termF3139382949494840133001,0461,9901,9911,9923,7443,542
  Long-termF328,6076,8857,00010,0658,2414,3267,0457,9078,0668,0217,9268,4246,6196,4966,8296,7066,806
 LoansF43,4563,4743,4723,7493,9784,11734,34928,03326,85925,40424,41124,00621,70821,43621,38520,42017,581
  Short-termF41000001586178851,1161,0871,5001,9541,9091,6622,0022,2882,449
  Long-termF423,4563,4743,4723,7493,9783,95933,73227,14825,74324,31722,91122,05219,79919,77419,38318,13215,132
                      
 Net General Government Debt (face value)GGNetDebt77,33586,11499,173111,280112,577117,666129,817135,168138,798145,187147,100151,732154,408157,538157,539160,751160,886
 By category:                  
 Currency and deposits F2-23,690-15,245-16,519-5,312-16,160-17,71345,55939,39638,58840,80530,57037,074-2,1808181,3837,4272,292
 Debt securities F391,01189,06894,70086,20383,18185,35789,15686,08179,60776,90782,48277,815115,957111,939109,448102,210104,096
  Short-termF3118,42710,85712,4857,1542,0126806843,7643,4944,0235,0431,4892,9693,5712,110-1,355-1,081
  Long-termF3272,58578,21182,21579,04981,17084,67788,47282,31776,11372,88477,43976,326112,988108,367107,339103,564105,177
 LoansF410,01312,29120,99230,38945,55550,022-4,8999,69020,60227,47534,04736,84340,63144,78146,70751,11454,498
  Short-termF41773490342735691358-181-316-536751746-47-53-204-788-822-893
  Long-termF429,24011,80020,65029,65444,86449,664-4,71710,00621,13826,72533,30136,89040,68544,98547,49651,93755,391
Table 8 Reconciliation of Exchequer Balance to General Government Deficit               
                    € million
Description ESA2010 code2010 Q12010 Q22010 Q3 2010 Q42011 Q12011 Q22011 Q3 2011 Q42012 Q12012 Q22012 Q3 2012 Q42013 Q12013 Q22013 Q32013 Q42014 Q1
                   
Exchequer balance -3,942-4,946-4,488-5,369-7,066-3,762-9,831-4,259-4,263-5,181-1,691-3,758-3,695-2,898-549-4,355-2,316
                   
Deduct cash inflows which do not increase financial net worth -1-1-1-380-1-1-1-59-2-2-2-8-1,020-86-1,310-298-1,330
Inflows from sale or redemption of financial assets -1-1-1-380-1-1-1-59-2-2-2-8-1,020-86-1,310-293-1,330
Incurrence of Exchequer liability to Central Bank for notes and coins in circulation 000000000000000-50
                   
Exclude cash outflows which do not reduce financial net worth 0006502,51704,5302872501,50205151,117409287631,179
Acquisition of financial assets 000642004,5302872501,50205151,117396287631,179
Repayment of promissory notes notional loan principal 00002,5170000000013000
Redemption of Exchequer liability to Central Bank for notes and coins in circulation 00090000000000000
                   
Impact on financial net worth of Exchequer cash transactions -3,942-4,947-4,489-5,099-4,550-3,763-5,302-4,031-4,014-3,681-1,692-3,250-3,598-2,575-1,832-3,890-2,467
                   
Adjust for impact of non-cash revenue and disposals of non-financial asset (+) -1,012-2969792-440-2801021,337-1,007-127-165652-177-1531021,034-556
Difference between Exchequer cash tax revenue and time-adjusted Revenue Net Receipts -177-3169121233-28049553-311-20269259-123-198247225-66
Receipts due from EU (Agriculture grants, Cohesion Fund, ESF and ERDF) -83520671-67300709-7710-8768-785-100755-747
Accrual of interest due on contingent capital assets assigned to banks 00000053757575-22575451-1495150
Licence sales 00000000000-450727444206
Other accrued revenue 00000000000000000
                   
Adjust for impact of non-cash expenditure (-) -11,762-2,431-9,637-9,339670521-1,244466321678-1,2725526709-1,350726206
Capital transfers to financial institutions financed by promissory notes -10,900-2,250-8,580-9,12000000000013000
Difference between interest paid and accrued -213457-1,186-332647485-1,279293329676-1,27557-36669-1,376814140
Difference between Exchequer cash issues and accrued net spending of departments and offices 85838268-9-9-9129-44-42-40-7000-740
Other accrued expenditure -734-7224645324544443644436622726-1465
                   
Surplus/Deficit of ExchequerB9_exchequer-16,716-7,407-14,058-13,646-4,320-3,523-6,444-2,227-4,701-3,130-3,129-2,543-3,749-2,020-3,080-2,130-2,817
                   
Surplus/Deficit of extra-budgetary bodies, funds and accounts consolidated with Exchequer 783693932-100-34-2793398780-2-30-41-7227-7785
Bank Guarantee Scheme receipts - special account 02970-556313-223-373280-20-12-25-10-29-132-16-4141
Capital Services Redemption Account 3145578-57753-26-493037-18-5023359-6725
Small Savings Reserve Fund 00000000000000000
Other Extra-Budgetary Funds 3518-6-361301028458104796350-3525353018
Health Service Executive 4140394634353650-26-25-23-2100000
                   
Surplus/Deficit of Budgetary Central GovernmentB9_bcg-16,637-7,038-14,019-13,614-4,420-3,556-6,723-1,889-4,613-3,050-3,131-2,574-3,790-2,092-3,053-2,207-2,733
                   
Surplus/Deficit of other Central Government bodies 2351,300506365157233-4,231-925-6-5063229304289256247177
National Pensions Reserve Fund 1641,228433291162235-4,042-728180-19915320011224320715490
Non-market State corporations and agencies 7272727201-188-197-187-307-122-16319346499388
Voluntary and joint board hospitals -1012-5-3-10110-900000
                   
                   
Surplus/Deficit of Central Government B9_S1311-16,402-5,738-13,514-13,248-4,263-3,323-10,954-2,814-4,620-3,555-3,100-2,545-3,485-1,803-2,797-1,960-2,555
                   
Surplus/Deficit of Social Insurance Fund B9_S1314-528-283-11595-104-22-45-2150-29-442277-36-29-1696
                   
Surplus/Deficit of Local Government B9_S1313382-171-92-3493-8156-111109-111-42-4882-2112-2928
                   
Surplus/Deficit of General Government B9_S13-16,548-6,192-13,721-13,188-4,274-3,426-10,943-2,945-4,461-3,695-3,186-2,571-3,326-1,860-2,814-2,005-2,432

Background Notes

 

Introduction

The figures in this release comprise the first official publication by CSO of quarterly 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 replaces the current ESA 95 version and all EU member states must adopt ESA 2010 by September 2014. 

The data published in this series are the CSO’s first estimate of Government Deficit and Debt according to the new standard.  They will not be subject to the normal verification processes of the Excessive Deficit Procedure by Eurostat until September 2014.  They should, therefore, be regarded as provisional.

International Comparability

Internationally comparable data under ESA 2010 will not be available until all Member States have adopted the new standard later this year. 

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 (annual)

2012

(annual)

2013

(annual)

Q1 2014

GG Deficit impact

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

-0.2

-0.4

0.7

0.0

 

Impact of reclassification on debt

 

Q4 2011

Q4 2012

Q4 2013

Q1 2014

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

12.2

10.3

7.2

5.5

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

-1.8

-0.2

-0.4

-0.3

 

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.

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 the previous release.  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.  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.

 

Revisions to GDP

The GDP figures used in the current publication are consistent with those published in the National Income and Expenditure 2013 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 Service 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 will come 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.  For quarterly data the main tables reported are:

Table 2500 Quarterly non-financial accounts for general government (voluntary transmission under ‘gentleman’s agreement’ from Sept 2014 as main aggregates will be reported under Table 801 - Non-financial accounts by sector — quarterly in the new transmission programme),

Table 2700 Quarterly financial accounts for general government

Table 2800 Quarterly government debt.

 

These data are available on the Eurostat website (currently under ESA 95 standard).

 

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 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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