20 of October Statisric Day
Central Government Operations
|
Fiscal Sector | |
| CORE FRAMEWORK: Central Government Operations | |
| National Descriptor (as applicable): | |
| ENCOURAGED EXTENSION(S) (as applicable): | |
| National Descriptor (as applicable): | |
| National Methodological Publication (as applicable): | |
|
| |
|
I. Analytical Framework, Concepts, Definitions, and Classifications |
|
Analytical Framework, Concepts and Definitions
Pursuant to Law 15/97 establishing principles, rules, and standards applicable to the State Budget and the Conta Geral do Estado, C.G.E. [Government General Accounts Report], the Ministry of Planning and Finance (MPF) is responsible for preparing the State Budget and for collecting, processing, and disseminating data on its execution.
The overall structure of the budget has been gradually aligned with internationally accepted standards. The definitions of aggregates and sub-aggregates included in the annual Budget Laws and in the disseminated statistics are generally consistent with the concepts and definitions in the IMF Government Finance Statistics Manual 1986 (GFSM 1986). The budget execution data are presented in an analytical table (Revenue, Expenditure, Grants, Net Lending, and Financing), which largely approximates the methodology recommended in the GFSM 1986.
The budget execution report (quarterly) includes a fiscal table organized as follows:
Total Revenue Current Revenue Tax Revenue Income tax Tax on goods and services Other taxes Non-tax revenue Earmarked revenue Capital revenue
Total Expenditure Current Expenditure Investment expenditure Net lending
Overall balance excluding grants Overall balance including grants Transfers from Bank of Mozambique/IMF HIPC External financing
Net Domestic Financing
The sectorization of institutional units adopted for the compilation of the central government statistics is not enterely consistent with the recommendations of the GFSM 1986, (and, the autonomous institutions are not sectorized as recomended).
The harmonization of statistics on government (central and local) operations is complicated by the use of a simplified classification system by local governments. Classification System Revenue data are broken down as follows:
Current Revenue Tax Revenue Income tax Business profits tax Labor income tax Complementary tax Tax on goods and services VAT Consumption tax Fuel tax Tax on foreign trade Other taxes Non-tax revenue
Capital revenue
Revenue from fishing licenses is classified as tax revenue (in â€Other Taxes†). The nontax revenue category includes tax and nontax revenue earmarked for specific purposes. Capital revenue includes only sales of fixed assets.
The expenditure data are broken down into current and investment expenditure. The economic classification of expenditure strictly follows the GFSM 1986 and is broken down into the following main components:
Current Expenditure Personnel Expenditure Goods and Services Debt Obligations Current Transfers Subsidies Other current expenditure Past fiscal year ( supplementary period)
Capital Expenditure Capital Goods Capital Transfer Other capital expenditure
Investment expenditures are classified according to the financing source (domestic or external) which is, in turn, classified within the external component as Loans and Grants. Expenditure is also classified using functional and organizational classifications, in accordance with the GFSM 1986 methodology.
Grants are broken down according to the entity receiving them, that is, by central and provincial governments, and within each of those categories by use (for specific projects, non-earmarked counterpart funds, and onlending agreements). The GFS methodology recommends classifying grants first by type of donor (i.e., foreign, international organizations, and other government units) and then as current or capital.
Net Lending is considered as expenditure and classified as follows: (i) lending to enterprises; (ii) counterpart funds, and (iii) financial rehabilitation and equity participation. Lending to enterprises covers loans that the government grants to public enterprises for public policy purposes. Counterpart funds are generally financial resources that the government obtains by selling grants in kind on the domestic market. In the case of financial rehabilitation and equity participation, the government intervenes for public policy purposes to preserve political and economic stability.
Financing data are first classified as either domestic or external, as recommended in the GFSM 1986 methodology. Net foreign loans are classified as disbursements for investment projects, disbursements for other than investment projects, and amortization. The GFSM 1986 methodology recommends classifying external financing by type of creditor. Net domestic financing is classified by type of creditor and by debt instrument.
Current Balance equals Total Revenue (Current, Capital) less Current Expenditure.
Overall Balance Excluding Grants is defined as Total Revenue less Total Expenditure and Net Lending. The addition of grants to the Overall Balance Excluding Grants gives the Overall Balance Including Grants.
The primary balance is calculated as the difference between Total Revenue plus Grants and Total Expenditure excluding Interest on Debt, plus Net Lending.
Additional information:
The summary annual balance sheet of public enterprises is included in an annex to the Conta Geral do Estado. |
|
II. Scope of the Data |
|
Unit Coverage
The data disseminated in the Conta Geral do Estado include central government institutions and partially cover local government institutions and other central government institutions that enjoy financial autonomy, i.e., as autonomous institutions. The data in the Relatórios de Execução do Orçamento do Estado [state budget execution reports] cover only central government institutions. Transaction Coverage The data in the Conta Geral do Estado do not cover the operations, ( revenue and expenditure) of government agencies or institutions financed with their own resources. The budget execution report in principle covers all the operations of the central government, including transfers to autonomous institutions, independent agencies/municipalities, and public enterprises. Data on the latter are provided in an annex to the Conta Geral. Geographic Coverage Unrecorded Activity (as relevant) Periodicity
The Conta Geral do Estado is disseminated annually and is submitted to the Assembly of the Republic and the Administrative Court pursuant to Article 38 of Law 15/97. The budget execution reports are not submitted to the Administrative Court and their only purpose is to show the position of government financial operations, which is useful for financial programming purposes. Timeliness |
|
III. Accounting Conventions |
|
Revenue and expenditure are recoded on a cash basis. Expenditure is recorded at the time of payment. Revenue is recorded initially through the finance departments. The data are subsequently consolidated in the National Taxes and Audit Directorate and/or Customs and forwarded to the National Public Accounting Directorate (DNCP) for accounting purposes.
All transactions are carried out in current prices at the time of recording. Transactions carried out in foreign currency are converted into domestic currency at the time of recording, using the central bank daily exchange rate.
Supplementary period: For a given year, there are expenses relating to the previous year’s budget which, for accounting purposes, are recorded with a minus sign. If the expenditure involves payments to be made in the following year, it is recorded with a plus sign for accounting purposes. |
|
IV. Nature of the Basic Data Sources |
|
The quarterly data (revenue, expenditure, and financing) are as entered in the accounting records by the DNCP. Data on project-related transactions carried out directly by donors is provided directly by the donors and consolidated by the National Treasury Directorate. Expenditure in the Conta Geral do Estado includes transfers to autonomous institutions, independent agencies/municipalities, and public enterprises. These data are obtained from the respective entities. |
|
V. Compilation Practices |
|
Annual data are published in the Relatório de Execução do Orçamento do Estado and the Conta Geral do Estado. However, the data in the Conta Geral do Estado should be viewed as the most final, since they are adjusted for data from the supplementary period (see below). The Conta Geral do Estado also contains annexes on the revenue, expenditure, as well as financing of autonomous institutions, municipalities/independent agencies, and public enterprises.
The expenditure and revenue data in the budget execution report and in the Conta Geral do Estado are recorded in gross values. |
|