Differences exist between CSNA (Canadian System of National Accounts) and pure GFS (Government Finance Statistics) statistics. Government CSNA data, as noted above, originate from public accounts information. This information is adapted to the CSNA framework and is incorporated into products such as the Income and Expenditure Accounts, Financial Flows, National Balance Sheet and Input-Output tables. Finally, a mapping between the CSNA and GFS is performed to arrive at those quarterly estimates. In the mapping to GFS certain conceptual adjustments are made to the CSNA data (it should be noted that once the GFS is implemented, the data will be consistent with the Canadian System of National Accounts and the conceptual differences between the two sets of data will disappear).
- The GFS framework requires that revenues, expenses, assets and liabilities of non-autonomous public sector pension plans at the federal (Central) and provincial (State) government levels be included in the GFS Statement of Operations and the GFS Balance sheet. For the CSNA-mapped GFS quarterly data, these pension plans incomes and expenses are not included. In the CSNA, these pension plans’ liabilities are treated as liabilities of the government sector and are assets of the household sector while incomes and expenses of these pension plans are captured in the household sector accounts.
- The GFS framework requires the elimination of all inter and intra-government transactions between components of government in order to avoid double-counting. These revenue and expense transactions include transfers, interest flows, taxes paid and received, and purchases and sales of goods and services. In the CSNA, all inter and intra-governmental transfers are eliminated in calculating total government sector income and outlay. Also, transactions (interest flows, taxes paid and received, purchases and sales of goods and services and transfers) between budgetary operations (departments/ministries) and special funds are being eliminated. The new quarterly GFS submission reflects this CSNA presentation. Interest flows, taxes paid and received purchases and sales of goods and services between governments are not eliminated in calculating total government sector income and outlay as the necessary information, especially on a quarterly basis, is not available.
- For the financial flows and balance sheet, the elimination of inter and intra-governmental transactions is not performed in the CSNA except for transactions between budgetary operations and special funds. For this quarterly GFS data, inter and intra-governmental transactions (for total government) are eliminated for Treasury Bills and bonds only. As a result, the GFS series will differ from the corresponding series within the CSNA.
- In the CSNA balance sheet, the valuation of residential and non-residential structures and machinery and equipment are depreciated at replacement cost. Inventory estimates are the accumulation of the value of physical change estimates for the federal (Central) government in the income and outlay accounts (the CSNA does not currently calculate value of physical change for other government sub-sectors). Land estimates are derived using land to structure ratios.
- The CSNA mapped GFS balance sheet data is on a market value basis. Book value and market value estimates of financial assets and liabilities are the same except for bonds, shares and foreign investment. Market value estimates of these categories are derived using market to book factors obtained from various sources. The market valuation basis is also used in the CSNA annual financial accounts submissions to the OECD (Organisation for Economic Co-operation and Development) .
- For most financial categories of the balance sheet, the change in balance sheet values between two periods will not be equal to the estimates of financial flows for the period. The measure of this difference is due to many factors including foreign currency changes and market revaluations, allowances and write-offs, and additional data information. These are referred to as other economic flows and as noted above the CSNA does not currently compile an other change in assets account.