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Federal, State, and Local Governments
Government Finance and Employment Classification Manual

FUNCTION CODE:   I89 NAME:    Interest on General Debt
SECTOR:    General APPLIES TO:    Finance |X|    Employment | |
DEFINITION:    Amounts paid for use of borrowed monies, except those on utility debt, paid by all funds of the government.
EXAMPLES:   Interest on both short- and long-term debt for non-utility purposes, whether general obligation or nonguaranteed, including public debt for private purposes and debt to cover deficits of unemployment compensation or other insurance trust funds.
EXCLUSIONS:   Interest on debt for utilities (report at Utilities interest codes, I91-I94); premiums paid on debt retired (report at Other and Unallocable, code E89, for general debt and at codes E91-E94 for Utilities debt); Federal Government interest payments on own securities held by its insurance trusts (nonexpenditures).
REFERENCES: - To be added later -
OTHER NOTES:   (1) Make no adjustment to interest expenditure for premiums or discounts on debt issued or retired. (2) Due to the difficulty of tracing such payments, do not deduct from interest expenditure any state or local government interest payments on own securities held by their employee retirement funds. (3) Deduct from interest expenditure for the year in which they were received the following amounts: funds included in the proceeds from debt issues to cover interest accrued on debt prior to its sale. (4) The distinction between general interest and utility interest is determined by the classification of the outstanding debt which generated the interest payment. (5) No employment data are associated with this code.
  General Purpose Governments
EXPENDITURES, DIRECT: Federal StateD.C. Large City-County Other LocalSpecial District
I89 Interest on General Debt Y YY Y YY
* Shows whether data are collected (Y) or not (N) for that type.