4. The GFS framework

The role and responsibilities of government lead government units and public corporations to carry out a variety of activities and functions. The GFS framework organises these economic activities to allow government fiscal activity to be measured and analysed.

The GFS framework forms a set of interrelated statements and is designed to facilitate macroeconomic analysis by integrating flows and stock positions. The GFS framework provides the means with which to assess and measure the economic impact of government activity and the liquidity and sustainability of fiscal policy.

This chapter describes the GFS framework including the analytical objectives, the structure of the GFS framework, the GFS classifications that comprise the framework, and the related financial statements (outputs).