It does not include, however, pension spending: when you pay a salary to a civil servant you buy a service, his labor (there is an economic transaction), while when you pay a pension it is simply a transfer of rents (you receive nothing in return), so it is not accounted for in GDP.
Because the goods and services produced by the government do not have a market price, the value of the products is determined by the total costs necessary to produce these goods and services. These costs consist mainly of employee wages, intermediate consumption, and depreciation.
Public expenditure examples
To reach these levels of knowledge, it is imperative to organize these transactions into homogeneous categories, which allow the reading and interpretation of the events that occurred and their consequences. Therefore, resource classifications seek to identify the distinctive characteristics of the means of financing in order to be able to group them, measure them and analyze their effects.
Often when we talk about Open Data we tend to look only at statistical data, however, the concept is much broader and should reach all types of data, including scientific research.
Open access means that any user can read, download or copy the full texts of scientific articles, that is, it promotes greater accessibility for documents, which are more consulted and have more possibility of being cited.
It is mainly intended for articles, academic journals, book chapters, monographs, etc., however, universities are also joining this initiative, and are publishing the results of their research in what is known as open repositories (Open Repository).
This classification groups expenditures according to the items on which the fiscal agencies spent to generate the services they are responsible for. For example: salaries, purchase of goods and services, etc.
Exchanges, when a good or service is provided and in exchange an asset of equal value is received; and transfers, which involve the delivery of goods and services, but no value is received in exchange.
Because the accrual basis coincides with the actual flow of resources, since it is recorded as soon as the obligation is incurred. On the other hand, the cash basis may imply a time lag between the execution of an economic activity and its recording.
It identifies the deficit or surplus for the period for the agency or entity being analyzed. In the case of the central government, it is an indicator of the financial impact of the government’s actions on the rest of the economy.
It includes consumer goods and services; social security; acquisition of non-financial physical assets, such as land and buildings; loans; and capital transfers, including to international organizations and foreign governments.
Public spending in Mexico
In a previous work, we distinguished three spaces in which secrecy manifests itself: the regulatory, the reserved expenditures and the activities and structures that the State develops in a reserved manner.(1) Three general categories have also been described, covering the different types of information that, for reasons of national security (in the American meaning of the term), are kept in reserve: secrecy for genuine national security reasons, political secrecy and bureaucratic secrecy.(2)
In this sense, there can be secret orders and actions related to defense or to the sphere of judicial investigations, but there cannot be secret rules or secret budget items.
Military dictatorships, too, took the limit of what is reserved to the enactment of secret norms (laws, decrees and resolutions), which is absolutely contrary to the republican and democratic order. For citizens and non-state organizations, the obligation to comply with a regulation can only apply to the extent that it is published.