Source
Source Contact person/organisation Contact person/organisationIn this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
Data Characteristics Data Characteristics Other data characteristics Other data characteristicsThe concepts of saving and net lending are introduced by the series B8NS (Net saving) and B9S1S (Net lending/net borrowing). However, they are reintroduced in this section on General Government to reflect the particular importance these concepts have in the area of government finances. Saving is typically associated with the "Golden Rule" concept, namely that government current expenditures minus current receipts (such as taxes) should net out over the course of an economic cycle. Net lending/ borrowing reflects the fiscal position after accounting for capital expenditures. Net lending means that government is providing financial resources to other sectors and net borrowing means that government requires financial resources from other sector.
It's important to note in this context that whilst general government saving and net lending/borrowing are important concepts in the SNA accounting framework and provide the basis for sound international comparisons, they are not necessarily the key fiscal measures targeted by governments. Some countries for example manage their budgets using broader notions that incorporate the positions of public corporations and others focus on more narrow concepts such as central government. The European Commission uses the net lending concept to monitor government fiscal surpluses/deficits with an additional adjustment to reflect net streams of interest payments resulting from swaps arrangements and forward rate agreements.
Concepts & Classifications Concepts & Classifications Key statistical concept Key statistical conceptDefinition
Net saving = Net Disposable income minus general government final consumption
= Current receipts minus current expenditure (including depreciation)
Net-lending = Gross saving plus net capital transfers (receivable minus payable) minus gross capital formation minus acquisitions less disposals of non-produced non-financial assets
= Total general government revenue minus total general government expenditure
= Net acquisition of financial assets minus net incurrence of liabilities.
Other Aspects Other Aspects Recommended uses and limitations Recommended uses and limitationsComparability
The biggest issue affecting comparability across countries concerns the scope of the government sector. In many countries, hospitals, for example, are classified outside of the government sector and are instead recorded as public corporations; on the grounds that they charge market prices for their services. This is an important point as the guidance provided in the SNA on the delineation of units between market and non-market providers (which refers to most output being non-market) provides scope for differences in country practices. EU countries have adopted a 50% rule for "most" in this context.
Another potential area where comparability may be affected relates to the determination of public ownership. The SNA requires that "control" be the determining factor and describes a number of criteria that can be used to assess this requirement. Recognising that this is non-trivial it includes a practical recommendation that a 50% rule relating to share ownership should be adopted. However, in practice, countries may still choose to measure ownership on the basis of other determining criteria.
Generally however the comparability of net-lending/borrowing and saving figures for countries is very high.
Saving data for Chile correspond to gross saving.
In Ireland, in 2010, the government made massive capital transfers to Anglo Irish Bank, Irish Nationwide Building Society and EBS Building Society, which had a big impact on the government net lending figures. This kind of large one-off transactions may also affect the results for other countries, albeit usually to a lesser extent. In Germany, in 1995, after unification, the ownership of the economic units in the former German Democratic Republic (GDR) was given to a newly created public entity called 'Deutsche Treuhand'. This entity was unwound in 1995 and the German Federal Government had to assume its debt. In National Accounts this amount was treated as a capital transfer from General government sector (S13) to Non-financial corporations (S11).
In this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
The concepts of saving and net lending are introduced by the series B8NS (Net saving) and B9S1S (Net lending/net borrowing). However, they are reintroduced in this section on General Government to reflect the particular importance these concepts have in the area of government finances. Saving is typically associated with the "Golden Rule" concept, namely that government current expenditures minus current receipts (such as taxes) should net out over the course of an economic cycle. Net lending/ borrowing reflects the fiscal position after accounting for capital expenditures. Net lending means that government is providing financial resources to other sectors and net borrowing means that government requires financial resources from other sector.
It's important to note in this context that whilst general government saving and net lending/borrowing are important concepts in the SNA accounting framework and provide the basis for sound international comparisons, they are not necessarily the key fiscal measures targeted by governments. Some countries for example manage their budgets using broader notions that incorporate the positions of public corporations and others focus on more narrow concepts such as central government. The European Commission uses the net lending concept to monitor government fiscal surpluses/deficits with an additional adjustment to reflect net streams of interest payments resulting from swaps arrangements and forward rate agreements.
Definition
Net saving = Net Disposable income minus general government final consumption
= Current receipts minus current expenditure (including depreciation)
Net-lending = Gross saving plus net capital transfers (receivable minus payable) minus gross capital formation minus acquisitions less disposals of non-produced non-financial assets
= Total general government revenue minus total general government expenditure
= Net acquisition of financial assets minus net incurrence of liabilities.
Comparability
The biggest issue affecting comparability across countries concerns the scope of the government sector. In many countries, hospitals, for example, are classified outside of the government sector and are instead recorded as public corporations; on the grounds that they charge market prices for their services. This is an important point as the guidance provided in the SNA on the delineation of units between market and non-market providers (which refers to most output being non-market) provides scope for differences in country practices. EU countries have adopted a 50% rule for "most" in this context.
Another potential area where comparability may be affected relates to the determination of public ownership. The SNA requires that "control" be the determining factor and describes a number of criteria that can be used to assess this requirement. Recognising that this is non-trivial it includes a practical recommendation that a 50% rule relating to share ownership should be adopted. However, in practice, countries may still choose to measure ownership on the basis of other determining criteria.
Generally however the comparability of net-lending/borrowing and saving figures for countries is very high.
Saving data for Chile correspond to gross saving.
In Ireland, in 2010, the government made massive capital transfers to Anglo Irish Bank, Irish Nationwide Building Society and EBS Building Society, which had a big impact on the government net lending figures. This kind of large one-off transactions may also affect the results for other countries, albeit usually to a lesser extent. In Germany, in 1995, after unification, the ownership of the economic units in the former German Democratic Republic (GDR) was given to a newly created public entity called 'Deutsche Treuhand'. This entity was unwound in 1995 and the German Federal Government had to assume its debt. In National Accounts this amount was treated as a capital transfer from General government sector (S13) to Non-financial corporations (S11).