General government
This chapter provides financial statistics for central and local government based on a uniform accounting system.
The statistics are based on accounting information originating with the various accounting units. The accounts of the different units are kept according to accounting regulations and practices that may vary somewhat between the individual sectors. When being processed at Statistics Norway, the accounts are rearranged, checked and balanced according to the principles and definitions for financial statistics. The financial statistics are in turn adapted to the principles and definitions of the National Accounts, but are more detailed than the National Accounts in certain areas.
In the general government accounts taxes and subsidies are entered on the basis of the real flow of goods and services for the individual years (accrued figures), while in the accounts for central government and local government, these items are mostly entered according to the cash principle (recorded figures). The financial accounts of general government do not fully correspond with the sum of those for central and local government.
Each of the administrative units performs a number of financial transactions in connection with the performance of its assigned tasks. The classification of profit and loss items according to national economic category is done in order to provide an overview of, as well as the basis for, analyses of the effect of developments in the public sector on the socio-economic situation in general.
The functional classification of government expenditure, Classification of the Functions of Government (COFOG), has been developed and recommended by the international organizations UN, IMF and OECD. COFOG can be applied to total expenditure or particular categories of expenditure, such as current or capital expenditure, as has been done in this publication.
Financial instruments are defined and classified on the basis of the national accounting standard which generally follows the UN's standard for the set up of balance sheet tables. For valuation of financial instruments such as Treasury bills, bearer bonds and shares, nominal values are used. Differences between nominal values and market values are classified under the reconciliation items.
Further details are given in the publications Public Sector Finances 1972-85, 1983-88 and 1986-91.