9 March 2010

Government deficit and debt are key indicators of the government sector's financial position. Annual government deficit and debt statistics are reported to the European Commission in the framework of the Excessive Deficit Procedure (EDP). Government revenue and expenditure are reported by Member States under the ESA 95 transmission programme.

General government net borrowing/net lending (deficit/surplus), and general government debt, form two of the convergence criteria for EMU. The following series are as reported under Table 1 of the Excessive Deficit Procedure (EDP) notification for the Member States and for HR, IS, and TR:

• Deficit/surplus of the general government sector;
• General government debt;
• General government gross fixed capital formation;
• General government primary balance.

General government revenue and general government expenditure are reported by national authorities in ESA table 2 'Main aggregates of general government' of the ESA 95 transmission programme.

The underlying methodological framework is the European system of accounts, 1995 edition (ESA 95). Deficit and debt statistics are compiled according to Excessive Deficit Procedure (EDP) rules. In addition, the ESA95 manual of Government Deficit and Debt contains Eurostat decisions and guidelines applicable to EDP statistics.

General government sector (S.13).

General government deficit/surplus corresponds to net borrowing/net lending as defined by the ESA 95 code 'EDP B9'. This is similar to B9, except that interest flows under swaps and forward rate agreements are treated as financial flows in ESA 95 but as interest for the

General government debt is defined as consolidated gross debt at end-year nominal value. Other accounts payable and financial derivatives (as defined in ESA 95) are excluded from the definition.

General government primary balance is defined as net borrowing/net lending less consolidated interest expenditure (ESA code D.41).

General government gross fixed capital formation corresponds to ESA code P.51.

General government revenue and general government expenditure are defined in Commission Regulation (EC) N° 1500/2000 of 10 July 2000. The difference between total revenue and total expenditure equals net lending/net borrowing (B9). The data for revenue and expenditure items (ESA codes) D.4, D.7, and D.9 are consolidated within the general government sector. D.995 is to be deducted from revenue rather than included in expenditure.

Valuation principles are in accordance with ESA 95. However, debt is recorded at nominal (face) value. Foreign currency debt is converted into national currency using end-year market exchange rates (though special rules apply to contractual agreements).

Data are in principle compiled on an accrual basis, according to ESA 95 rules. For recording of taxes and social contributions, the common principles of ESA 95 are modified by Commission Regulation (EC) No. 995/01.

General government sector, as defined in ESA 95.

General government sector.

EU and euro area aggregates, EU Member States, Croatia (HR), Turkey (TR), Norway (NO), Iceland (IS), Switzerland (CH).

EDP series: for EU countries time series are available for most countries from 1990 onwards, otherwise from 1998. The series begin in 2004 for HR and TR, and in 2008 for IS. The data are not available for NO and CH.

Government revenue and expenditure: for EU countries time series are available for most countries from 1990 onwards, otherwise from 1998. The series begin in 1990 for IS, NO and CH. The data are not available for HR and TR.

Not applicable.

Euro (ECU before 1999).

The reference period is the calendar year.

National accounts are compiled in accordance with the European System of Accounts - ESA95 adopted in the form of a Council Regulation (EC) dated 25 June 1996, N° 2223/96. National accounts data are transmitted in accordance with the revised ESA 95 transmission programme (EP and Council Regulation (EC) N° 1392/07).  

For EDP statistics, the legal basis is the Treaty on European Union (Maastricht Treaty), the protocol on the Excessive Deficit Procedure annexed to the Treaty, and Council Regulation (EC) No. 479/2009 on the application of the Protocol. The provisions on the Excessive Deficit Procedure (Maastricht Treaty) are extended by the Stability and Growth Pact in the context of the Amsterdam Treaty.

Data may be circulated within the European Institutions, especially the European Commission, the European Central Bank and the European Council ahead of release.

Council Regulation (CE) No 322/97of 17 February 1997 (OJ No L 52/1) and Council Regulation (EURATOM, EEC) no 1588/90 of 11 June 1990 on the transmission of the data subject to statistical confidentiality to the Statistical Office of the European Communities (OJ No L 151/ 1) stipulates the detailed rules used for receiving, processing and disseminating the confidential data.

Data are treated as confidential after reporting by Member States, during the validation process, until the Press Release.

The precise date of release is of Member States' data disseminated on Eurostat's website.

The dissemination calendar is released on Eurostat´s website.

In line with the Community legal framework and the European Statistics Code of Practice Eurostat disseminates European statistics on Eurostat's website (see item 10 - 'Dissemination format') respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably. The detailed arrangements are governed by the Eurostat protocol on impartial access to Eurostat data for users.

Bi-annual. Exceptionally, revisions may occur and may be disseminated at other times.

News releases on-line.

Statistics in Focus - irregularly

EU economic data pocketbook - quarterly

Eurostatistics - monthly

Please consult free data on-line or refer to contact details.

Micro-data are accessible on Eurostat´s website dedicated section to Government Finance Statistics, 3 calendar weeks after the reporting.

Comments may be made by the European Commission or EU Member States on the occasion of the release of EU data.

The ESA95 methodology is referred to in European System of Accounts - ESA95.

The methodology for EDP statistics is set out in the Protocol on the EDP, and Council Regulation (EC) No. 479/2009. Reference may also be made to the ESA95 manual of Government Deficit and Debt, which contains Eurostat decisions and guidelines.

The press releases contain information on the quality of the data released bi-annually. See also the explanatory text "flags and special values" in the information topics on the level of the Eurostat Reference Database

Quality of data and adherence to rules are assured during the validation period (three calendar weeks after reporting of data). Quality assurance is based to a large extent on assessing sources and methods through questionnaires, EDP dialogue and methodological visits to Member States, etc. Quality assurance also involves arithmetic checks as well as checks on consistency with ESA95 and other government datasets received by Eurostat from Member States.

Data reported by all Member States is based on harmonised European rules, therefore data is comparable. Quality is assured through the validation process after each reporting period.

Users of data are: the European Commission, European Central Bank, researchers, politicians, etc.

The data are required primarily for the purposes of the EDP, Stability and Growth Pact, and convergence criteria of EMU.

Eurostat and DG ECFIN are in constant dialogue in order to completely ensure and improve the data available.

All data required by Council Regulation (EC) No. 479/2009 are available. Series are incomplete for the non-EU member countries. Concerning the reporting of government revenue and expenditure, series length is not satisfactory in all cases.

Eurostat's quality control ensures a high level of accuracy in the reported data.

Not applicable.

Not applicable.

For EU countries reporting is at year t+3 months (preliminary data for previous year), and at year t + 9 months (revised data for previous year). Occasionally a revision may occur at another time.
For HR, TR, and IS reporting is at year t+3 months on voluntary basis.

All Member States meet the deadlines.

Data are comparable across the EU, as harmonised rules are used by all Member States for compiling reports.

Comparability over time is generally ensured. However, in some countries, methodological breaks can affect time series (normally on a temporary basis).

National data may be available from official national sources. Some variables can be cross-checked with other tables submitted under the ESA95 transmission programme (see the Eurostat Reference Database domains GOV, AGGS, SECTORS), but subject to timing differences in the reporting.

In general, full coherence is assured.

Not available

For years covered by the latest EDP notification (back to year t-4), revision policy should be in line with the Code of best practice agreed between the Commission and Member States. Data for earlier years (t-5 backwards) are revised in the database by Eurostat whenever Member States provide revised data. The complete time-series can be revised due to changes in the methodology or methods of data compilation or major and benchmark revisions.

Under the EDP, the data reported for the previous year at t+3 months are preliminary since revised data are notified at t+9 months. Revisions may also affect the previous four years. In general the data are revised for the latest years according to change from preliminary to half-finalized and final data sources.

Major changes in methodology may occur as a result of EU legislation or Eurostat decisions (following a consultation procedure with Member States). Major changes in methodology which occur at the national level to comply with EU requirements may be mentioned in Eurostat's press release on the reporting of the data.

Data are based on national accounts of general government, derived primarily from administrative and other records of general government, and on official estimates particularly from ministries of finance. Basic data are in national currency.

Twice a year.

EDP data of Member States are reported by national authorities with the use of the EDP notification tables. They are transmitted to DG ECFIN and to Eurostat. The collection of government revenue and expenditure is via table 2 of the ESA 95 transmission programme ('main aggregates of general government'), completed by national authorities.Once data are compiled by national authorities in the reporting format, they are transmitted via GESMES to Eurostat.

Data are loaded into the Eurostat Reference Database once validated by Eurostat. The validation process consists of arithmetic and consistency checks as well as checks on conformity with ESA95 and EDP methodology.

For series transmitted in national currencies other than euro, the data are converted by Eurostat into euro using annual average exchange rates (supplied by ECB) in the case of general government deficit/surplus, primary balance, gross fixed capital formation, general government revenue and expenditure. Eurostat converts national currency into euro using end-year exchange rates (supplied by ECB) in the case of general government debt.

Euro area and EU aggregates are formed by the aggregation of the country data in euro (ECU), without consolidation adjustment.

Series EDP B9 for the United Kingdom is adjusted by Eurostat in line with Eurostat's decision on treatment of UMTS (= Universal Mobile Telecommunications System) licences.