Local Government Finance Statistics, Queensland

NAME OF ORGANISATION
Australian Bureau of Statistics (ABS)

OVERVIEW
Government Finance Statistics (GFS) refer to statistics that measure the financial transactions of governments and reflect the impact of these transactions on other sectors of the economy. GFS focuses on financial transactions such as governments' spending, lending, taxing and borrowing activities. The Australian system of GFS is designed to provide statistical information on Australian public sector entities (ie, general government (GG) and public non-financial corporations (PNFCs), classified in a uniform and systematic way. The system is based on international standards set out in the System of National Accounts 1993 (SNA93) and the draft accrual version of the International Monetary Fund's (IMF) Government Finance Statistics Manual.

PURPOSE
The statistics from this collection are compiled primarily to provide General Government and Public Corporations aggregates for the local government sector for GFS purposes. A further purpose is served of producing local government financial data at the Authority level. These objectives combined allow a complete picture of government financial activity in Qld to be produced. Generating a contribution to National Accounts is a third aim of the collection.

SCOPE

All legal Local Government Councils and Local Government corporations in Qld are in scope.
Coverage of traditional councils (125) is 100%.
Coverage of indigenous councils (approx 33) is currently nil (but will expand to 100% in due course).
Coverge of major corporations (3) is 100%.

DATA DETAIL

Conceptual framework

The method of classification and aggregation of data items is based on the Classification Manual for Government Finance Statistics (GFS), 1989 (ABS Cat No. 1217.0) and the information paper, Accruals-based Government Finance Statistics, 1999 (ABS Cat No.5517.0) .

The Australian system of GFS is designed to provide statistical information on Australian public sector entities (ie, general government (GG) and public non-financial, and financial, corporations (PNFCs and PFCs) classified in a uniform and systematic way. The system is based on international standards in SNA93 and the draft accrual version of the International Monetary Fund's (IMF) Government Finance Statistics Manual.

With the adoption of accrual accounting (September '99) the new conceptual framework is now in the form of an integrated statement of stocks and flows derived from the System of National Accounts 1993 (SNA93). This differs significantly from the old cash-based framework which focused on selected flows and stocks. The new framework facilitates a more comprehensive assessment of the economic impact of government activity and the sustainability of fiscal policy. It also provides an improved basis for monitoring the efficiency in the allocation and use of government resources.

The adoption of a new conceptual framework has required changes to most of the classifications used in the compilation of GFS. See details in 5.3 Classifications (summary).

Main outputs

Government Finance Statistics (GFS) data. The statistics from this collection are primarily compiled to provide general government and public non-financial corporations aggregates. Data are currently published in a number of publications produced by National Accounts and Public Sector Accounts.

Classifications

A comprehensive account of the concepts applied in GFS is provided in Government Finance Statistics Australia: Concepts, Sources and Methods (ABS Cat No. 5514.0).

Economic Type Framework (ETF) - This is the main classification for stocks and flows. It is structured as an input classification, unlike the previous cash accounting -based classification which was output oriented and focused on outlays, revenues and financing transactions. The new ETF resembles a set of financial accounting statements with sections for the operating statement, cash flow statement, balance sheet and other sections.

Government Purpose Classification (GPC) - The GPC is used to classify revenues, expenses and net acquisition of non-financial assets of the public sector in terms of the purposes for which the transactions are made. The GPC is based on the SNA93 Classification of the Functions of Government (COFOG). The use of this classification will be phased out commencing from 2003/04. The GPC classification will be replaced by the Local Government Purpose Classification (LGPC)

Local Government Purpose Classification (LGPC) - NOT YET IN USE - The LGPC provides a structure to classify a range of financial transactions in terms of the purposes for which the transactions are made. These include outlays on final consumption expenditure, intermediate consumption, gross capital formation and capital and current transfers, by local government. Data collected according to LGPC will provide information on the socioeconomic effects of local government transactions. It will be also be useful in establishing trends in local government outlays on particular purposes over time. The units of classification are, in principle, individual transactions. This means that each purchase, wage payment, transfer, loan disbursement or other outlay should be assigned an LGPC code according to the function that the transaction serves.

Taxes Classification (TC) - Taxes are broken down into the following broad categories -

1. Taxes on income, profits and capital gains.
2. Taxes on employer's payroll and labour force.
3. Taxes on property.
4. Taxes on provision of goods and services.
5. Taxes on the use of goods and performance of activities.

Each statistical unit included in the GFS is classified according to a number of classifications including:

• Institutional sector (General Government, Public Non-financial Corporation or Public Financial Corporation sector);
• Level of government (Commonwealth, State, Local or Multi-jurisdictional);
• State of jurisdiction; and
• Industrial sector (ANZSIC).

The statistics show, for the public sector:

• Consolidated transactions (for all sectors), presented so that the economic impact and sustainability of government fiscal programs can be assessed;
• The roles of the different levels of government in the undertaking and financing of their fiscal programs;
• The transactions of the Commonwealth, individual State, Territory and Local governments, so they may be used to indicate the comparative standing of each level of government in relation to its expenditure, its sources of revenue, and its financing transactions.

Comments and/or Other Regions

All indigenous councils in Qld are currently excluded but will be included at a future stage.

COLLECTION FREQUENCY
Annually

Frequency comments
Annual

COLLECTION HISTORY

1974-1985 (approx)
During this period financial year data were collected directly from Councils on a form designed jointly by the ABS and the Qld Local Govt Grants Commission and distributed under the authority of the Qld Dept of Local Govt. Data from this Administrative By-product collection were made available to the ABS. Data were in the public domain and were available on an individual Local Government authority basis for dissemination. Data were also published for most of this time.

1986-1995 (approx)
During this period financial year data were collected electronically on a spreadsheet designed jointly by the ABS and the Qld Local Govt Grants Commission and distributed under the authority of the Qld Dept of Local Govt. Data from this Administrative By-product collection were made available to the ABS. Data were in the public domain and were available on an individual Local Government authority basis for dissemination. Data were also published for most of this time.

1996-2002
During this period financial year data were collected directly, by clerical analysis of councils' and corporations' published financial statements. After a preliminary analysis of such data, local government units were then sent a 'dissection schedule' which sought additional detail (usually functional information) not readily available from public documents. The information sought in the dissection schedule was gathered under the authority of the Qld Dept of Local Govt and the Grants Commission acted as agent for all aspects of the collection. Data from this Administrative By-product collection were made available to the ABS.
From 1999-00 a number of Joint Local Governments commenced to be formed. These are classified to the Local Government sector on the basis of their equity being held predominantly by Local Governments and are in scope of the LGF collection.


DATA AVAILABILITY
Yes