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Published: 28 March 2013

Preliminary data released on general government deficit in 2012 changed only slightly when revised

According to Statistics Finland's preliminary data the general government deficit data were only revised a little compared to data released in early March. The revision was based on up-to-date data of the central government on the tax revenue and interests accumulated in 2012, due to which the deficit decreased by EUR 52 million. Data on general government debt did not change in this connection. The figures derive from the data reported by Statistics Finland to Eurostat.

Finland's general government deficit (-) and debt, percentage of GDP

During 2012, consolidated general government EDP debt,or consolidated gross debt, grew by EUR 10.3 billion to EUR 103.1 billion. The GDP share of the debt rose from the previous year’s 49 per cent to 53 per cent. General government deficit relative to GDP went up to 1.9 per cent from the previous year's 0.8 per cent. According to the preliminary data, public deficit and debt remained below the reference values of the European Union’s Growth and Stability Pact

In 2012, the financial position of general government was EUR 3.7 billion in deficit. The central government sector's deficit grew by EUR 0.9 billion to EUR 6.6 billion. The development was affected by the slowdown in the increase in tax accruals and the growth in current transfers paid. The local government sector's deficit grew by EUR 1.0 billion to EUR 2.1 billion. Even though the expenditure of the local government sector grew more slowly than in the previous year, the financial position was weakened by clearly slower growth in tax revenue and received income transfers compared to the year before. Employment pension funds and other social security funds accumulated a surplus of EUR 5.1 billion.

In 2012, general government’s unconsolidated gross debt increased by EUR 9.6 billion from the year before. Central government debt rose by EUR 8.1 billion whereas local government debt grew by EUR 1.5 billion. Internal general government debt decreased by some EUR 0.6 billion. The EDP debt describes general government’s debt to the other sectors of the economy and to the rest of the world, and it is derived by subtracting internal general government debts from unconsolidated gross debt.

In public sector accounts, the European Financial Stability Facility EFSF is, based on Eurostat's decision, handled so that EFSF's borrowing is recorded as part of the gross government debt of the countries that have provided guarantees. The loan received by the beneficiary country from EFSF is recorded as if it had been received from the countries in the euro area that have provided guarantees and these countries in turn owe the corresponding amount to EFSF. As a result, the EDP gross debt of the countries that provided guarantees grows but the net debt remains unchanged because the countries have a similar receivable from the beneficiary country. The gross government debt to be recorded for each country on the loans granted by EFSF is calculated by dividing the loan granted to the beneficiary country by the contribution key (based on the share in ECB's capital of each country participating in the support operations).

For 2012 Finland's general government debt, includes EUR 2 702 million of debt granted by EFSF to beneficiary countries. The amount was at the end of 2011 EUR 312 million.

The public deficit concept used in these statistics complies with the Excessive Deficit Procedure (EDP) of the European Union's Growth and Stability Pact. This so-called EDP deficit corresponds with the net lending of the general government sector account in national accounts (ESA95), except for the interest flows relating to swap and forward rate agreements, which are entered as interest expenses in the EDP deficit report but as changes in derivative debt in national accounts. In 2012, the impact from the difference between the methods amounted to 0.4 per cent of GDP, and, according to preliminary data, the net lending of the sector accounts compliant with ESA95 was -2.3 per cent of GDP.

Eurostat will verify the deficit and debt figures reported by the Member States over the following weeks. In this process, changes may be made to the figures reported by Statistics Finland. In that case, the updated figures will be released on the pages of these statistics on 22 April, on the same day that Eurostat will publish the data.

EDP reporting tables, April 2013 notification (updated 22.4.2013) (Excel)

Source: General government deficit and debt. Statistics Finland

Inquiries: Mira Lehmuskoski 09 1734 2708, Niina Suutarinen 09 1734 3302, financial.accounts@stat.fi

Director in charge: Leena Storgårds

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Appendix tables

• Appendix table 1. General government EDP deficit 1997-2012 1) (28.3.2013)
• Appendix table 2. General government EDP debt 1997-2012 1) (28.3.2013)
• Appendix table 3. General government non-consolidated gross debt and EDP debt 2000-2012 1) (28.3.2013)

Revisions in these statistics

• Revisions in these statistics (28.3.2013)

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Updated 28.3.2013