Latest release

Part K - The treatment of expenditure versus expense in GFS

Australian System of Government Finance Statistics: Concepts, Sources and Methods
Reference period
2015
Released
23/12/2015
Next release Unknown
First release

13.141.

In the IMF GFSM 2014, the term expenditure is used primarily in the context of the statement of operations and the statement of sources and uses of cash. The term expenditure has been reintroduced to GFS by the IMF after being omitted in the IMF GFSM 2001, and is a concept that should not be confused with the term expense. Expenditure is calculated as the sum of GFS expenses and the net acquisition of non-financial assets whereas expenses are defined as decreases in net worth resulting from a transaction. In Australian GFS, the term expenditure is not used in the context of the statement of operations or the statement of sources and uses of cash. The conceptual difference between expenditure and expense is highlighted in Diagram 13.5 below.

Diagram 13.5 - The difference between expenditure and expenses in GFS
GFS ExpensesGFS Expenditure
Decreases in net worth resulting from transactionsGFS Expenses
plus
Net acquisition of non-financial assets