Palestinian Central Bureau of Statistics "PCBS" & The Ministry of Finance (MOF)

                                                                                                                  

   Press Release on the General Government Finance 2019

 

 

USD 4,811.5 million the total of gross expenses, against USD 4,427.2 million of total of revenues, out of which 12% are foreign grants and aids

 

The Ministry of Finance and Palestinian Central Bureau of Statistics (PCBS)  have announced the results of the general government finance for Palestine for the year 2019. The general government finance statistics were prepared according to the Government Finance Statistics Manual (GFSM 2001) issued by the International Monetary Fund in 2001.

 

The general government sector consists of many sub sectors; mainly, the central government that includes all government institutions that work as agencies or bureaus of the central authority and the local government which includes municipalities, village councils and project committees.

 

Gross expenses of the general government amounted to USD 4,811.5 million includes current and capital expenses

The results showed that gross expenses (curren mnt and capital) of the general government amounted to USD 4,811.5 million in the year 2019, out of which USD 4,577.3 million was current expenses, whereas capital expenses (net acquisition of non-financial assets) amounted to USD 234.2 million.

 

The gross expenses of the central government amounted to USD 4,342.5 million, distributed as follows: 48.4% compensation of employees (salaries of civil and military employees and social contributions), 26.2% social benefits, 18.2% expenses on use of goods and services, 1.5% interest, 1.1% other expenses, 0.9% subsidies, and 0.2% grants. While capital expenses (net acquisition of non-financial assets) represented 3.5% of the value of gross expenses of the central government.

 

The results also showed that the amount of local government (municipalities, villages councils and projects committees) gross expenses amounted to USD 470.3 million in the year 2019, distributed as follows: 28.2% compensation of employees (salaries of employees), 35.2% use of goods and services,  2.4% consumption of fixed capital, 14.1% other expenses such as (insurance and maintenance of vehicles, workers allowances, expenses for executing local projects, promotional discounts to repay debts), 1.8% social benefits, 0.3% grants, 0.1% subsidies, 0.1% interest. While capital expenses constituted 17.8% of the total amount of local government expenses.

 

 

Value of general government revenues amounted to USD 4,427.2 million, out of which 12% are foreign grants and aids

The results showed that the value of general government revenues amounted to USD 4,427.2 million in the year 2019, out of where 89.8% was central government revenues, of which 79.9% was tax revenues, 12.5% were grants and aids, and 7.6% were other revenues.

The results also highlighted that the value of local government (municipalities, villages councils and projects committees) revenues amounted to USD 453.5 million in the year 2019 (10.2% of general government revenues); distributed as follows: 77.8% other revenues (which include sales of water and electricity to the public), 16.8% taxes, 5.2% grants,  and 0.2% social contributions.

 

 

Net Operating Balance for general government achieved Deficit amounted to USD 150.1 million

The net operating balance is calculated by subtracting current expenses from total revenues. The deficit in operating balance amounted to USD 150.1 million in the year 2019. This showed that current expenses exceeded revenues by this amount.

Current expenses of the central government exceeded its Revenues by USD 216.8 million. In addition, the revenues of the local government exceeded its current expenses by USD 66.7 million.

 

Net Lending and Borrowing for general government achieved deficit amounted to USD 384.3 million

The net lending and borrowing is calculated by subtracting net acquisition of non-financial assets from net operating balance. The results showed that a deficit in net lending and borrowing amounted to USD 384.3 million in the year 2019.

 

Net acquisition of financial assets amounted to USD 261.1 million, against USD 600.1 million for net acquisition of  financial  liabilities 

General government budget data showed that net acquisition of financial assets during the year 2019 amounted to USD 261.1 million, out of which USD 28.7 million was domestic, whereas foreign financial assets amounted to USD 232.4 million.  And the net acquisition of  financial  liabilities during the year 2019 amounted to USD 600.1 million. out of which USD 413.0 million was domestic, whereas foreign financial assets amounted to USD 187.1 million. 

 

Important note:

The general government finance statement is prepared according to GFSM 2001. Its methodology and  classification are different from that used to prepare the monthly published reports on fiscal operations which reflect the budget. 

It should be noted that in those reports, there is an item known as (net lending), which is a key component of the budget. According to the methodology of GFSM 2001, this item is considered as a financial asset not an expense; therefore, it has been excluded from expenses and included in the acquisition of financial assets.