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Comparison of central government net lending and on-budget entities net financing requirement, EUR billion ¹⁾

	2005	2006	2007*	2008*
A Central government on-budget entities' net financing requirement according to the statement on Budget outturn	1,5	1,5	2,9	0,8
1 Financial transactions included in the budget	-1,8	-1,8	-0,8	0,0
Lending	0,1	0,1	0,1	0,1
Received loan repayments	-0,3	-0,2	-0,2	-0,2
Acquisitions of shares and equities	0,0	0,0	0,2	0,2
Sales of shares and equities	-1,5	-1,6	-0,9	-0,1
Other financial transactions	0,0	0,0	0,0	0,0
2 Difference of paid and accrued interest	0,1	0,1	0,0	0,0
3 Other accounts receivable/payable	0,3	-0,1	-0,1	-0,3
4 Surplus/deficit in extra-budgetary funds	0,4	1,7	2,1	0,9
5 Other adjustment items	0,4	0,2	-0,3	0,4
B Adjustment items, total = 1+2+3+4+5	-0,6	0,1	0,9	0,9
EMU surplus/deficit = A+B	0,9	1,6	3,8	1,7
SWAP-adjustment of interest expenditure	-0,3	-0,2	0,0	-0,1
Net lending in the ESA-95 accounts = EMU surplus/deficit + SWAP-adjustment	0,6	1,4	3,8	1,6

1) Preliminary*
The table presents a comparison of the budget deficit and the central government net lending in national accounts for the four previous years. In Finland the budget deficit refers to the net financing requirement as recorded in the central government budget. The concept covers on-budget entities, and the budget deficit is calculated as the difference of all central government revenue and expenditure, before borrowing and amortisations.
National accounts data on deficit/surplus (i.e. net borrowing/lending) are obtained from net financing requirement via several correction items. In national accounts, net borrowing/lending may not be influenced by items representing financial transactions (changes in receivables and liabilities), such as lending, received loan repayments or other financial investments.
More incidental adjustment items are represented by the emission and exchange rate gains and losses which appear in the central government budget in so far as they are not included in national accounts interest items. Divergences from cash based calculations also arise because of taxes, subsidies and interests being recorded in some cases not on a cash basis (but on an accrual basis or a time adjusted basis), and because of other recording or timing differences.
Central government EMU surplus/deficit is obtained by summing items A and B of the table. National accounts data on central government surplus is obtained by adding the co-called swap-adjustment of the interest expenditure.
The table shows that significant differences when compared with the budget surplus are caused especially by the selling of shares and equities, which do not improve the EMU deficit in national accounts. By contrast, the central government surplus in national accounts is increased typically by surplus in the extra-budgetary funds.
The data corresponds to the data in the EDP notification table 2A.

Source: General government deficit and gross debt according to EMU criteria, 2008, Statistics Finland

Inquiries: Mika Sainio (09) 1734 2686, Matti Okko (09) 1734 3341, rahoitus.tilinpito@stat.fi

Director in charge: Ari Tyrkkö

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Updated 30.09.2009