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 government gross debt-to-GDP ratio is a key indicator that can be used to monitor the sustainability of government finance, and to assess the government sector's overall health and its ability to incur additional debt or to manage the levels of its current debt.
Changes in government debt over time reflect the behaviour of past fiscal balances; recurring large deficits will result in higher debt levels whereas a succession of surpluses will reduce debt levels.
The higher a government's liabilities, the higher the probability of a government defaulting on loans, as perceived by markets, the higher risk premium demanded by the market, resulting in an increase in the cost of debt.
Concepts & Classifications Concepts & Classifications Key statistical concept Key statistical conceptDefinition
The government gross debt-to-GDP ratio is calculated as the amount of total government debt of a country as a percentage of its GDP.
Debt is a commonly used concept, defined as a specific subset of liabilities. All debt instruments are liabilities, but some liabilities such as equity and investment fund shares, and financial derivatives are usually not considered as debt. Debt is thus obtained by adding the following liability categories, whenever available/applicable in the financial balance sheet of the general government: monetary gold and SDRs (AF1), currency and deposits (AF2), debt securities (AF3), loans (AF4), Insurance pension and standardised guarantees (AF6) and other accounts payable (AF8). Importantly, tradable debt such as securities issued is valued at market prices. The adjusted gross debt figures exclude unfunded pension liabilities for OECD countries who record it in the accounts.
According to standard methodology, government debt relates to general government that "consists mainly of central, state and local government units together with social security funds imposed and controlled by those units".
Other manipulations Other manipulationsThe general government gross debt is one of the two headline indicators scrutinised by the European Commission to assess the soundness of EU countries' public finance, in the context of the EU Excessive Deficit Procedure (EDP), annexed to the Maastricht Treaty. This measure is also consolidated but it is based on nominal valuations, and excludes liabilities relating to monetary gold and SDRs, financial derivatives, equity and investment fund shares, insurance, pension and standardised guarantee, and other accounts payable.
Other Aspects Other Aspects Recommended uses and limitations Recommended uses and limitationsComparability
Across OECD countries, the comparability of data on general government debt can be affected through national differences in implementing the SNA definitions, especially in relation to the delineation of the government sector, to national consolidation practices and to the definitions and treatment of debt components.Data are consolidated for all OECD countries, i.e. general government debt does not include the debt issued by one sub-sector and held by another sub-sector of the government, except for Chile, Japan, and Mexico.
The treatment of government liabilities in respect of their employee pension plans is diverse across countries, making international comparability difficult. In particular, according to the 1993 SNA, only the funded component of the government employee pension plans should be reflected in its liabilities. However, the new 2008 SNA recognizes the importance of the liabilities of employers' pension schemes, regardless of whether they are funded or unfunded. For pensions provided by government to their employees, countries have some flexibility in the recording of the unfunded liabilities in the set of core tables.
A few OECD countries, such as Australia, Canada, Iceland, Sweden, and the United States record unfunded pension liabilities, in the general government debt data which may have a sizable impact of the gross debt to GDP ratio. To make the cross country comparison more transparent the OECD publishes gross government debt to GDP both excluding and including the unfunded pension liabilities. It should be noted that some countries like Switzerland and the United Kingdom record funded pension liabilities, which may represent approximately 2.5 % and 7.5% of GDP respectively (depending on the year).
More generally, gross debt figures have to be treated with care, as they only provide a partial view of fiscal sustainability. Net (financial) debt or net worth figures, taking into account financial and/or non-financial assets, generally provide a better picture (See also section 30). Also guarantees and contingent liabilities in general are not included in the data on government debt.
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 government gross debt-to-GDP ratio is a key indicator that can be used to monitor the sustainability of government finance, and to assess the government sector's overall health and its ability to incur additional debt or to manage the levels of its current debt.
Changes in government debt over time reflect the behaviour of past fiscal balances; recurring large deficits will result in higher debt levels whereas a succession of surpluses will reduce debt levels.
The higher a government's liabilities, the higher the probability of a government defaulting on loans, as perceived by markets, the higher risk premium demanded by the market, resulting in an increase in the cost of debt.
Definition
The government gross debt-to-GDP ratio is calculated as the amount of total government debt of a country as a percentage of its GDP.
Debt is a commonly used concept, defined as a specific subset of liabilities. All debt instruments are liabilities, but some liabilities such as equity and investment fund shares, and financial derivatives are usually not considered as debt. Debt is thus obtained by adding the following liability categories, whenever available/applicable in the financial balance sheet of the general government: monetary gold and SDRs (AF1), currency and deposits (AF2), debt securities (AF3), loans (AF4), Insurance pension and standardised guarantees (AF6) and other accounts payable (AF8). Importantly, tradable debt such as securities issued is valued at market prices. The adjusted gross debt figures exclude unfunded pension liabilities for OECD countries who record it in the accounts.
According to standard methodology, government debt relates to general government that "consists mainly of central, state and local government units together with social security funds imposed and controlled by those units".
The general government gross debt is one of the two headline indicators scrutinised by the European Commission to assess the soundness of EU countries' public finance, in the context of the EU Excessive Deficit Procedure (EDP), annexed to the Maastricht Treaty. This measure is also consolidated but it is based on nominal valuations, and excludes liabilities relating to monetary gold and SDRs, financial derivatives, equity and investment fund shares, insurance, pension and standardised guarantee, and other accounts payable.
Comparability
Across OECD countries, the comparability of data on general government debt can be affected through national differences in implementing the SNA definitions, especially in relation to the delineation of the government sector, to national consolidation practices and to the definitions and treatment of debt components.Data are consolidated for all OECD countries, i.e. general government debt does not include the debt issued by one sub-sector and held by another sub-sector of the government, except for Chile, Japan, and Mexico.
The treatment of government liabilities in respect of their employee pension plans is diverse across countries, making international comparability difficult. In particular, according to the 1993 SNA, only the funded component of the government employee pension plans should be reflected in its liabilities. However, the new 2008 SNA recognizes the importance of the liabilities of employers' pension schemes, regardless of whether they are funded or unfunded. For pensions provided by government to their employees, countries have some flexibility in the recording of the unfunded liabilities in the set of core tables.
A few OECD countries, such as Australia, Canada, Iceland, Sweden, and the United States record unfunded pension liabilities, in the general government debt data which may have a sizable impact of the gross debt to GDP ratio. To make the cross country comparison more transparent the OECD publishes gross government debt to GDP both excluding and including the unfunded pension liabilities. It should be noted that some countries like Switzerland and the United Kingdom record funded pension liabilities, which may represent approximately 2.5 % and 7.5% of GDP respectively (depending on the year).
More generally, gross debt figures have to be treated with care, as they only provide a partial view of fiscal sustainability. Net (financial) debt or net worth figures, taking into account financial and/or non-financial assets, generally provide a better picture (See also section 30). Also guarantees and contingent liabilities in general are not included in the data on government debt.