Government finance statistics framework The Government finance statistics (GFS) framework measures the financial activities of governments. It is used by policy makers and analysts to understand how government affects the economic and social wellbeing of Australians. GFS data is derived from government accounting systems and is collected by the Australian Bureau of Statistics (ABS) from all levels of government, including public corporations. Why is COFOG-A and GFS important to the Territory? The Australian, state and territory governments use the statistics collected by the ABS to compare data nationally for policy development and informed decision-making. How agencies classify their expenditure using COFOG-A can affect the Northern Territory For example: Government’s future revenue streams. Commonwealth Grants Commission (CGC) uses GFS as one of its main data sources when – providing advice on the distribution of goods and services tax (GST) Indigenous Expenditure Report COFOG-A data is the starting point for determining the level – of expenditure for Aboriginal and Torres Strait Islander people Australian Institute of Health and Welfare uses GFS data in its reports on expenditure in the – health, social security, and welfare sectors Productivity Commission uses GFS data in its reports on government services, for example – expenditure on education. A high-level overview of how government finance statistics contribute to state and territory funding and the importance of agencies role in providing quality financial data, is illustrated in Figure 1. Impact of GFS data on government funding flows Figure 1. Line agencies record expenditure related to program delivery and classify it using COFOG-A – State and territory treasuries collate line agencies expenditure and submit the data to the – ABS ABS converts the data to the GFS framework – CGC analyses the converted GFS data and makes recommendations to the Australian – Government on distribution of GST revenue Commonwealth Treasury taking into consideration CGC recommendations, distributes GST – and other funds to the states and territories Funding flows from the Commonwealth Treasury to the states and territories, through to line agencies. Coding COFOG-A The Australian System of Government Finance Statistics: Concepts, Sources and Methods 2015 – (AGFS15) manual is produced by the ABS. It outlines the GFS framework, including the structure and definitions for COFOG-A. Recommendation To comply with COFOG-A reporting requirements, Appendix 1 Part C of the AGFS15 manual should be referred to when classifying agency expenditure.
Government finance statistics framework The Government finance statistics (GFS) framework measures the financial activities of governments. It is used by policy makers and analysts to understand how government affects the economic and social wellbeing of Australians. GFS data is derived from government accounting systems and is collected by the Australian Bureau of Statistics (ABS) from all levels of government, including public corporations. Why is COFOG-A and GFS important to the Territory? The Australian, state and territory governments use the statistics collected by the ABS to compare data nationally for policy development and informed decision-making. How agencies classify their expenditure using COFOG-A can affect the Northern Territory Government’s future revenue streams. For example: Commonwealth Grants Commission (CGC) – uses GFS as one of its main data sources when providing advice on the distribution of goods and services tax (GST) Indigenous Expenditure Report – COFOG-A data is the starting point for determining the level of expenditure for Aboriginal and Torres Strait Islander people Australian Institute of Health and Welfare – uses GFS data in its reports on expenditure in the health, social security, and welfare sectors Productivity Commission – uses GFS data in its reports on government services, for example expenditure on education. A high-level overview of how government finance statistics contribute to state and territory funding and the importance of agencies role in providing quality financial data, is illustrated in Figure 1. Figure 1. Impact of GFS data on government funding flows Line agencies – record expenditure related to program delivery and classify it using COFOG-A State and territory treasuries – collate line agencies expenditure and submit the data to the ABS ABS – converts the data to the GFS framework CGC – analyses the converted GFS data and makes recommendations to the Australian Government on distribution of GST revenue Commonwealth Treasury – taking into consideration CGC recommendations, distributes GST and other funds to the states and territories Funding flows from the Commonwealth Treasury to the states and territories, through to line agencies. Coding COFOG-A The Australian System of Government Finance Statistics: Concepts, Sources and Methods – 2015 (AGFS15) manual is produced by the ABS. It outlines the GFS framework, including the structure and definitions for COFOG-A. Recommendation To comply with COFOG-A reporting requirements, Appendix 1 Part C of the AGFS15 manual should be referred to when classifying agency expenditure.
guidance-document-cofoga.docx