Budget deficit in Finland refers to the net financing requirement of the state budget, calculated on cash basis as the difference between state income and expenditure before borrowing and amortisations.
National accounts data on deficit/surplus (net borrowing/lending) are obtained from net financing requirement via several correction items. In national accounts, net borrowing/lending may not be influenced by items representing financial transactions (changes in receivables and liabilities), such as borrowing, received loan repayments or other financial investments.
More incidental items are represented by the emission and exchange rate gains and losses which appear in the state budget in so far as they are not included in national accounts interest items. Accounting differences arise where net income of state enterprises that are part of the private sector continue to be treated as part of the public sector for national accounts purposes. Divergences from cash based calculations also arise because of taxes, subsidies and interests being recorded in some cases not on a cash basis but on an accrual basis or a time adjusted basis, and because of other recording or timing differences of a more incidental nature.
Statistics using the definition
Validity of the definition
- Valid until (31 December 2078)