## Process and timeline for updating the GFSM 2014

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**Canonical URL:** [Process and timeline for updating the GFSM 2014](https://www.imf.org/-/media/files/data/statistics/gfsm/process-and-timeline-for-updating-the-gfsm-2014.pdf)

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---

### Background and rationale
- GFSM 2014 is part of a series of international statistical standards issued by the IMF and provides economic and statistical reporting principles to compile fiscal statistics and guidelines on how to present these in an analytic framework.
- GFSM 2014 is harmonized with other macroeconomic statistical guidelines in terms of rules, concepts and definitions, notably sharing the same accounting basis, definition of institutional units and flows/stocks as the 2008 System of National Accounts (2008 SNA) and the Sixth Edition of the Balance of Payments and International Investment Position Manual (BPM6), while acknowledging some conceptual and reporting differences due to different purposes.
- Updates to related manuals have material implications for GFS; the update of the 2008 SNA and BPM6 (launched March 2020 with target manual release dates of March 2025) and updates to COFOG and SEEA CF make an update of GFSM 2014 a logical next step.

### Objectives of the GFSM 2014 update
- Harmonization with other statistical standards:
  - Ensure consistency in common areas of guidance with updates to the 2008 SNA and BPM6 and other concurrent updates (MFS, SEEA CF, COFOG).
  - Provide additional guidance and clarity on which changes impact GFS and fiscal analysis.
- Meeting user needs:
  - Identify GFS-specific issues to address gaps or clarify issues related to fiscal reporting and analysis (including research and development of new guidance or refinement of existing guidance).
  - Respond to evolving fiscal policy practices and novel instruments, for example developments related to COVID-19 and climate change.

### Key findings on scope and implications
- The latest progress report on GFS engagement in statistical standards updates identified 35 guidance notes whose recommendations have a bearing on GFS; these recommendations would, at minimum, need to be reflected in GFS to maintain harmonization.
- Updates to COFOG and SEEA CF have GFS implications: COFOG is widely used to present government expenditure on a functional basis; SEEA CF addresses the economy–environment relationship including government roles in environmental protection.
- The GFS community engagement strategy (approved by the IMF’s Government Finance Statistics Advisory Committee (GFSAC) in December 2020) defined three categories of GFS priority issues:
  - (i) cross-cutting issues for SNA/BPM Task Teams;
  - (ii) additional GFS issues (conceptual/methodological and clarification) not for SNA/BPM Task Teams;
  - (iii) issues relating to GFS user needs for additional compilation guidance.

### Process overview and timeline
- Two-phase update to be completed by 2027Q4:
  - Phase I: Research phase — identify, prioritize and develop research projects into discussion notes; conclude with final decisions on how to update GFSM 2014.
  - Phase II: Drafting phase — prepare annotated outlines, draft chapters and annexes, and complete final approval processes.
- Sequencing and milestones:
  - Research Phase starts in 2024Q2.
  - Final list of projects confirmed by 2024Q3 with low resource research projects advanced by 2025Q2.
  - Drafting Phase starts in 2025Q2 with agreement of new manual structure.
  - Drafting of discussion notes concludes with set recommendations during the Research Phase.
  - Drafting and review of annotated outlines, chapters and annexes occurs through 2026–2027.
  - Final draft of new manual available for dissemination by end 2027.
- The process allows overlap between Phase I and Phase II; consultation of the GFS community is embedded into both phases.

### Phase I — Research program structure
- Research program development drew on:
  - Methodological inquiries received from IMF member country authorities and compilers since GFSM 2014 publication.
  - List of GFS topics collated from the GFS community in 2020.
  - SNA/BPM update guidance notes and additional issue/clarification notes.
  - Issues in the GFS Strategy Note for Engagement with SNA/BPM update.
  - Research topics of the SEEA CF.
- Global consultation on the research program was conducted during June/July 2024 after preliminary endorsement by GFSAC in April 2024.

### Criteria for selecting research projects
- Meeting emerging fiscal developments and user needs: projects addressing evolving fiscal data user needs not adequately covered by current standards (e.g., novel instruments, climate change, social expenditure).
- Harmonization and coherence: projects that improve coherence between macroeconomic statistical standards and reflect changes being implemented in the 2025 SNA and BPM7.
- Better data for fiscal policy analysis/making: projects that improve GFS data for identifying fiscal risks, assessing fiscal sustainability, and supporting comparability over time (e.g., valuation of assets/liabilities, delineation of government, treatment of transactions).
- Materiality and relevance: projects likely to be material for fiscal statistics and relevant for a large number of countries.
- Resource implications and existing SNA/BPM work are considered to focus efforts on GFS-specific issues while reflecting concluded SNA/BPM recommendations to maintain harmony.

### Types of research projects and advancement stages
- Two types of research projects:
  - Projects with SNA/BPM guidance notes already prepared: IMF staff will draft proposed recommendations for GFSM updating, generally starting at the review and approval stage.
  - Projects requiring new research: advanced through Task Teams, starting with a Project Initiation Document (PID) and development of discussion notes; these progress through research & development, stakeholder consultation, then review & approval.
- Three-stage research phase workflow:
  1. Research and development stage — preparation of discussion notes (for projects that need them).
  2. Stakeholder consultation stage — global consultation and analysis of feedback.
  3. Review and approval stage — preparation and endorsement of proposed recommendations based on discussion notes or SNA/BPM guidance notes, followed by drafting and sign-off of a notice of decision by the Director of the IMF Statistics Department.

### Review, endorsement and decision procedures
- For Task Team discussion-note projects:
  - IMF Staff prepare a PID and Task Teams develop discussion notes.
  - GFSAC reviews and is asked to endorse discussion notes for global consultation.
  - If GFSAC does not agree with recommendations, Task Teams revise and resubmit.
  - Post-consultation, IMF Staff prepare proposed recommendations reflecting GFS implications; GFSAC reviews and may endorse for posting.
  - IMF Staff prepare a draft notice of decision; following GFSAC endorsement, the STA Director signs the final notice of decision for posting.
- For projects based on SNA/BPM guidance notes:
  - IMF Staff prepare proposed recommendations highlighting GFS compilation and fiscal analysis implications and follow the same review and approval stage steps.
  - Expectation is that SNA/BPM recommendations will be introduced in GFSM unless substantive and material concerns are raised, in which case projects may be assigned to Task Teams for further GFS-specific discussion notes.

### Mechanism for advancing research: discussion notes
- Discussion notes are the mechanism by which research projects are advanced through Task Teams.
- Approach modeled on the 2008 SNA and BPM6 updates, where guidance notes were used to research projects, analyze issues, define options, and make recommendations.
- Discussion notes must:
  - Clearly identify issues, discuss options for resolution, and state implications for GFS and other statistical domains.
  - Convey issues succinctly to technical experts, compilers, and users to encourage informed discussion and well-supported recommendations.
- Task Team chairs (or co-chairs) oversee development of discussion notes and may assign smaller groups to prepare draft notes for the full Task Team.

### Task Teams: composition, topics, and responsibilities
- Task Teams will be established by the GFSAC to progress research projects from issues to recommended discussion for the updated manual.
- Membership:
  - Chosen from IMF member countries, international organizations (including IMF), and experts from a broad range of other macroeconomic statistical domains.
  - GFSAC members may participate or chair Task Teams.
  - Selection based on technical expertise, ability to proactively contribute, and geographical balance.
- Initially expected Task Teams (four):
  - (i) GFS compilation topics (e.g., capital injections, PPPs, market test, social insurance).
  - (ii) Debt and other monetary and financial topics (e.g., debt, provisions, SWFs) — to specifically include experts from the Monetary and Financial Statistics (MFS) community.
  - (iii) Environmental topics (e.g., environmental taxes and expenditure) — to specifically include experts from the SEEA CF community.
  - (iv) Fiscal analysis and GFS communication topics.
- Some projects may span multiple areas; in such cases one Task Team may take the lead with input from others.
- Task Teams lead development of discussion notes and recommendations; their work is overseen by the GFSAC.

### Consultations, feedback, revisions, and dispute resolution
- After GFSAC endorsement of Task Team recommendations, global consultations will be conducted to gather views from countries and international organizations.
- Feedback from consultations will be summarized and shared with the GFSAC and Task Teams.
- If consultation supports Task Team recommendations, a proposed recommendation document will be prepared showing how they will be adopted for integration into the updated GFSM.
- If consultation shows the collective GFS community view diverges from Task Team recommendations, the GFSAC will decide whether to adopt an alternative recommendation or require further research; Task Teams will research and revise discussion notes and recommendations for further GFSAC review.
- Dispute resolution and default position:
  - If no consensus can be reached despite iterations, the dispute resolution mechanism takes effect.
  - If the GFSAC cannot agree, the Chair of the GFSAC will decide how to proceed.
  - If the Chair concludes a decision cannot be reached, the default position is to leave the current discussion in GFSM 2014 on that research project unchanged.
  - Recommendations for all conceptual changes are to be presented in discussion notes and agreed through consensus within Task Teams and endorsed by the GFSAC prior to global consultation and conclusion.

### Phase II — Drafting of the new manual
- Drafting team responsibilities and composition:
  - Draft chapters and annexes of the new GFSM based on research-phase recommendations.
  - Composed of IMF Staff and members of Task Teams heavily involved in discussion notes and recommendations.
  - A lead editor may be appointed in later stages to ensure language consistency.
- Process and sequencing:
  - Prepare an outline of the new GFSM structure ahead of annotated outlines.
  - Structure should indicate where changes are required prior to the end of the research phase.
  - Consider common chapters between the updated GFSM and the 2025 SNA (e.g., guidance on accounting rules and sector classification).
  - Structure to be endorsed by the GFSAC; approved structure leads to annotated outlines of chapters and annexes, which are shared with countries and international organizations for consultation.
  - Drafting of the preliminary version occurs after global consultation of annotated outlines.
  - GFSM 2014 will be updated to reflect outcomes of SNA/BPM recommendations and discussion notes; tracked changes will show amendments relative to GFSM 2014.
  - Drafting is modular: individual chapters and annexes can be reviewed and consulted at different times; some drafting can proceed while structure and outlines remain under consultation.
  - Where sections not previously discussed are revised, proposed revised text and reasons will be clearly highlighted.
- Timeline milestone:
  - A near-final draft will be available in 2027; this version will include revisions from consultation feedback and editing for consistency.
  - The final draft will be reviewed and agreed by the GFSAC prior to formal approval by the Director of the IMF’s Statistics Department.

### Governance: roles and responsibilities
- IMF Statistics Department:
  - Holds ultimate responsibility for the GFSM 2014 and its update.
  - The Director and Chief Statistician are responsible for approving the final version of the manual.
- GFSAC:
  - Provides advice, direction, collective oversight, and direction to the IMF Statistics Department and Task Teams on scope and technical aspects.
  - Expected to critically review and challenge proposals to ensure the new GFSM is conceptually sound, implementable, and useful for policy analysis.
- GFSAC Secretariat:
  - Responsible for project managing and coordinating the update process.
  - Staffed by members of the Government Finance Division of the IMF’s Statistics Department.
  - Manages the update process according to the timeline agreed by GFSAC and coordinates logistics, meetings, communication, and engagement with the GFS community.
- Task Teams:
  - Provide key technical input, lead development of discussion notes and recommendations.
  - Members chosen for technical expertise and ability to contribute; diverse representation of global IMF membership considered.
- Engagement with the wider GFS community:
  - A communication and engagement plan will identify stakeholders (who), define purpose (why), approaches (how), and indicative timelines (when).
  - The GFS community will be engaged through global consultation and outreach to provide technical inputs, raise awareness, advocate, and gain support for adoption and implementation of the updated methodological framework in fiscal analysis, Fund surveillance, and policy decision.
  - Different modalities and tools will be used to promote collaboration, active engagement, and targeted outreach.

*Source: IMF — Process and timeline for updating the GFSM 2014.*

### 1.      The Government Finance Statistics Manual 2014 (GFSM 2014) is part of a series of

### Process and timeline for updating the GFSM 2014

### Background and rationale
- The Government Finance Statistics Manual 2014 (GFSM 2014) is part of a series of international statistical standards issued by the IMF and provides economic and statistical reporting principles to compile fiscal statistics and guidelines on how to present these in an analytic framework.
- GFSM 2014 is harmonized with other macroeconomic statistical guidelines in terms of rules, concepts and definitions, notably sharing the same accounting basis, definition of institutional units and flows/stocks as the 2008 System of National Accounts (2008 SNA) and the Sixth Edition of the Balance of Payments and International Investment Position Manual (BPM6), while acknowledging some conceptual and reporting differences due to different purposes.
- Updates to related manuals have material implications for GFS; the update of the 2008 SNA and BPM6 (launched March 2020 with target manual release dates of March 2025) and updates to COFOG and SEEA CF make an update of GFSM 2014 a logical next step.

### Objectives of the GFSM 2014 update
- Harmonization with other statistical standards:
  - Ensure consistency in common areas of guidance with updates to the 2008 SNA and BPM6 and other concurrent updates (MFS, SEEA CF, COFOG).
  - Provide additional guidance and clarity on which changes impact GFS and fiscal analysis.
- Meeting user needs:
  - Identify GFS-specific issues to address gaps or clarify issues related to fiscal reporting and analysis (including research and development of new guidance or refinement of existing guidance).
  - Respond to evolving fiscal policy practices and novel instruments, for example developments related to COVID-19 and climate change.

### Key findings on scope and implications
- The latest progress report on GFS engagement in statistical standards updates identified 35 guidance notes whose recommendations have a bearing on GFS; these recommendations would, at minimum, need to be reflected in GFS to maintain harmonization.
- Updates to COFOG and SEEA CF have GFS implications: COFOG is widely used to present government expenditure on a functional basis; SEEA CF addresses the economy–environment relationship including government roles in environmental protection.
- The GFS community engagement strategy (approved by the IMF’s Government Finance Statistics Advisory Committee (GFSAC) in December 2020) defined three categories of GFS priority issues: (i) cross-cutting issues for SNA/BPM Task Teams; (ii) additional GFS issues (conceptual/methodological and clarification) not for SNA/BPM Task Teams; and (iii) issues relating to GFS user needs for additional compilation guidance.

### Process overview and timeline
- The update is proposed to follow two phases and be completed by 2027Q4:
  - Phase I: Research phase — identify, prioritize and develop research projects into discussion notes; conclude with final decisions on how to update GFSM 2014.
  - Phase II: Drafting phase — prepare annotated outlines, draft chapters and annexes, and complete final approval processes.
- Sequencing and milestones (as stated in the update document):
  - Research Phase starts in 2024Q2.
  - Final list of projects confirmed by 2024Q3 with low resource research projects advanced by 2025Q2.
  - Drafting Phase starts in 2025Q2 with agreement of new manual structure.
  - Drafting of discussion notes concludes with set recommendations during the Research Phase.
  - Drafting and review of annotated outlines, chapters and annexes occurs through 2026–2027.
  - Final draft of new manual available for dissemination by end 2027.
- The process allows overlap between Phase I and Phase II; consultation of the GFS community is embedded into both phases.

### Phase I — Research program structure
- Research program development drew on:
  - Methodological inquiries received from IMF member country authorities and compilers since GFSM 2014 publication.
  - List of GFS topics collated from the GFS community in 2020.
  - SNA/BPM update guidance notes and additional issue/clarification notes.
  - Issues in the GFS Strategy Note for Engagement with SNA/BPM update.
  - Research topics of the SEEA CF.
- Global consultation on the research program was conducted during June/July 2024 after preliminary endorsement by GFSAC in April 2024.

### Criteria for selecting research projects
- Meeting emerging fiscal developments and user needs: projects addressing evolving fiscal data user needs not adequately covered by current standards (e.g., novel instruments, climate change, social expenditure).
- Harmonization and coherence: projects that improve coherence between macroeconomic statistical standards and reflect changes being implemented in the 2025 SNA and BPM7.
- Better data for fiscal policy analysis/making: projects that improve GFS data for identifying fiscal risks, assessing fiscal sustainability, and supporting comparability over time (e.g., valuation of assets/liabilities, delineation of government, treatment of transactions).
- Materiality and relevance: projects likely to be material for fiscal statistics and relevant for a large number of countries.
- Resource implications and existing SNA/BPM work are considered to focus efforts on GFS-specific issues while reflecting concluded SNA/BPM recommendations to maintain harmony.

### Types of research projects and advancement stages
- Two types of research projects:
  - Projects with SNA/BPM guidance notes already prepared: IMF staff will draft proposed recommendations for GFSM updating, generally starting at the review and approval stage.
  - Projects requiring new research: advanced through Task Teams, starting with a Project Initiation Document (PID) and development of discussion notes; these progress through research & development, stakeholder consultation, then review & approval.
- Three-stage research phase workflow:
  1. Research and development stage — preparation of discussion notes (for projects that need them).
  2. Stakeholder consultation stage — global consultation and analysis of feedback.
  3. Review and approval stage — preparation and endorsement of proposed recommendations based on discussion notes or SNA/BPM guidance notes, followed by drafting and sign-off of a notice of decision by the Director of the IMF Statistics Department.

### Review, endorsement and decision procedures
- For Task Team discussion-note projects:
  - IMF Staff prepare a PID and Task Teams develop discussion notes.
  - GFSAC reviews and is asked to endorse discussion notes for global consultation.
  - If GFSAC does not agree with recommendations, Task Teams revise and resubmit.
  - Post-consultation, IMF Staff prepare proposed recommendations reflecting GFS implications; GFSAC reviews and may endorse for posting.
  - IMF Staff prepare a draft notice of decision; following GFSAC endorsement, the STA Director signs the final notice of decision for posting.
- For projects based on SNA/BPM guidance notes:
  - IMF Staff prepare proposed recommendations highlighting GFS compilation and fiscal analysis implications and follow the same review and approval stage steps.
  - Expectation is that SNA/BPM recommendations will be introduced in GFSM unless substantive and material concerns are raised, in which case projects may be assigned to Task Teams for further GFS-specific discussion notes.

*Source: IMF — process and timeline for updating the GFSM 2014 (GFSM 2014 update document).*

### 18.      Discussion notes will be the mechanism by which research projects are advanced through

### Process and Timeline for Updating the GFSM 2014

### Mechanism for advancing research
- Discussion notes will be the mechanism by which research projects are advanced through Task Teams.
- The update approach will follow the model used for the 2008 SNA and BPM6, where guidance notes were used to research projects, analyze issues, define options, and make recommendations.
- Discussion notes must clearly identify issues, discuss options for resolution, and state implications for GFS and other statistical domains; they must convey issues succinctly to technical experts, compilers, and users to encourage informed discussion and well-supported recommendations.
- Task Team chairs (or co-chairs) oversee development of discussion notes and may assign smaller groups to prepare draft notes for the full Task Team.

### Task Teams: composition, topics, and responsibilities
- Task Teams will be established by the GFSAC to progress research projects from issues to recommended discussion for the updated manual.
- Membership:
  - Chosen from IMF member countries, international organizations (including IMF), and experts from a broad range of other macroeconomic statistical domains.
  - GFSAC members may participate or chair Task Teams.
  - Selection based on technical expertise, ability to proactively contribute, and geographical balance.
- Initially expected Task Teams (four):
  - (i) GFS compilation topics (e.g., capital injections, PPPs, market test, social insurance).
  - (ii) Debt and other monetary and financial topics (e.g., debt, provisions, SWFs) — to specifically include experts from the Monetary and Financial Statistics (MFS) community.
  - (iii) Environmental topics (e.g., environmental taxes and expenditure) — to specifically include experts from the SEEA CF community.
  - (iv) Fiscal analysis and GFS communication topics.
- Some projects may span multiple areas; in such cases one Task Team may take the lead with input from others.
- Task Teams will lead development of discussion notes and recommendations; their work is overseen by the GFSAC.

### Consultations, feedback, and revisions
- After GFSAC endorsement of Task Team recommendations, global consultations will be conducted to gather views from countries and international organizations.
- Feedback from consultations will be summarized and shared with the GFSAC and Task Teams.
- If consultation supports Task Team recommendations, a proposed recommendation document will be prepared showing how they will be adopted for integration into the updated GFSM.
- If the consultation shows the collective GFS community view diverges from Task Team recommendations, the GFSAC will decide whether to adopt an alternative recommendation or require further research; Task Teams will research and revise discussion notes and recommendations for further GFSAC review.

### Dispute resolution and default position
- If no consensus can be reached despite iterations, the dispute resolution mechanism takes effect.
- If the GFSAC cannot agree, the Chair of the GFSAC will decide how to proceed.
- If the Chair concludes a decision cannot be reached, the default position is to leave the current discussion in GFSM 2014 on that research project unchanged.
- Recommendations for all conceptual changes are to be presented in discussion notes and agreed through consensus within Task Teams and endorsed by the GFSAC prior to global consultation and conclusion.

### Phase II — Drafting of the new manual
- A drafting team will be responsible for drafting chapters and annexes of the new GFSM, based on research-phase recommendations.
- Drafting team composition:
  - IMF Staff and members of Task Teams heavily involved in discussion notes and recommendations.
  - A lead editor may be appointed in later stages to ensure language consistency.
- Process and sequencing:
  - An outline of the new GFSM structure will be prepared ahead of annotated outlines.
  - The structure should indicate where changes are required prior to the end of the research phase.
  - Common chapters between the updated GFSM and the 2025 SNA can be considered (e.g., guidance on accounting rules and sector classification).
  - The drafting team develops the structure for endorsement by the GFSAC; approved structure leads to annotated outlines of chapters and annexes, which are shared with countries and international organizations for consultation.
  - Drafting of the preliminary version occurs after global consultation of annotated outlines.
  - The GFSM 2014 will be updated to reflect outcomes of SNA/BPM recommendations and discussion notes; tracked changes will show amendments relative to GFSM 2014.
  - Drafting is modular: individual chapters and annexes can be reviewed and consulted at different times; some drafting can proceed while structure and outlines remain under consultation.
  - Where sections not previously discussed are revised, proposed revised text and reasons will be clearly highlighted.
- Timeline milestone:
  - A near-final draft will be available in 2027; this version will include revisions from consultation feedback and editing for consistency.
  - The final draft will be reviewed and agreed by the GFSAC prior to formal approval by the Director of the IMF’s Statistics Department.

### Governance: roles and responsibilities
- IMF Statistics Department:
  - Holds ultimate responsibility for the GFSM 2014 and its update.
  - The Director and Chief Statistician are responsible for approving the final version of the manual.
- GFSAC:
  - Provides advice, direction, collective oversight, and direction to the IMF Statistics Department and Task Teams on scope and technical aspects.
  - Expected to critically review and challenge proposals to ensure the new GFSM is conceptually sound, implementable, and useful for policy analysis.
- GFSAC Secretariat:
  - Responsible for project managing and coordinating the update process.
  - Staffed by members of the Government Finance Division of the IMF’s Statistics Department.
  - Manages the update process according to the timeline agreed by GFSAC and coordinates logistics, meetings, communication, and engagement with the GFS community.
- Task Teams:
  - Provide key technical input, lead development of discussion notes and recommendations.
  - Members chosen for technical expertise and ability to contribute; diverse representation of global IMF membership considered.
- Engagement with the wider GFS community:
  - A communication and engagement plan will identify stakeholders (who), define purpose (why), approaches (how), and indicative timelines (when).
  - The GFS community will be engaged through global consultation and outreach to provide technical inputs, raise awareness, advocate, and gain support for adoption and implementation of the updated methodological framework in fiscal analysis, Fund surveillance, and policy decision.
  - Different modalities and tools will be used to promote collaboration, active engagement, and targeted outreach.

---


_Source: https://www.imf.org/-/media/files/data/statistics/gfsm/process-and-timeline-for-updating-the-gfsm-2014.pdf_