Part B - The statement of sources and uses of cash

The main purpose of the statement of sources and uses of cash is to assess the level of liquidity of the general government and public sectors by measuring the net cash inflow from operating activities and the cash surplus (+) / cash deficit (-) position of the government. Paragraph 4.32 of the IMF GFSM 2014 describes the statement of sources and uses of cash as showing the total amount of cash generated or absorbed by current operating activities, transactions in non-financial assets, and transactions involving financial assets and liabilities other than the financial asset, cash and deposit (TALC 411) itself. This therefore reflects the cash basis of accounting. Non-cash flow items such as depreciation, accounts receivable / accounts payable or in-kind transactions are not captured by the statement of sources and uses of cash. Table 12.1 below shows a broad outline of the elements that comprise the GFS statement of sources and uses of cash.