Public finance

The great importance of data of public finance statistics as a basis for central decision-making in terms of fiscal, economic and monetary policies becomes obvious when considering the large share of public budgets expenditure in the gross domestic product (about 45%). In the European Economic and Monetary Union, solid public budget management is of particular importance. Meeting the annual limits regarding government deficit (3%) and government debt (60%), both measured as shares of the gross domestic product, are the major targets of the European stability pact. They are calculated on the basis of data of public finance statistics, applying the internationally comparable rules of the European System of Accounts (ESA95).

Public finance statistics of public budgets regularly provide a comprehensive and detailed picture of the entire public finance management. They show the revenue obtained by the public budgets, the expenditure that was financed by such revenue, and the extent to which public budgets had to use outside funds (borrowing on the credit market) or reserves to cover the financial balance (difference between revenue and expenditure including internal offsetting items). The burden placed on the future public budgets through outside funds borrowed is shown in the tables on public debt.

The tables on the equalisation of revenue indicate the level to which the different revenues of the Länder were equalised through equalisation payments of the Federation (vertical equalisation of revenue) and between the Länder (horizontal equalisation of revenue) in Germany.

The data on the finances of public budgets come from the following four sources:

1. Annual statistics of expenditure and revenue of public budgetsIt shows the expenditure and revenue of public budgets by types (staff expenditure, construction expenditure, taxes, etc.) and functions (schools, health, promotion of economic development, etc.).
   
   
2. Quarterly cash statisticsThis is the most up-to-date statistics in the area of public finance. However, special-purpose associations are not covered here. Only construction expenditure is broken down by functions.
   
   
3. Statistics of public debtIt shows the debt of public budgets at the end of any year, the debt changes occurring in the course of the year, the maturities of the funds borrowed, and the maturities of the debt.
   
   
4. Asset statisticsIt shows the public financial assets of the central, regional and local authorities and public funds, institutions and enterprises in the government sector at the end of any year, by asset types. Data on non-financial assets are not covered statistically.