Financial account A statement of all financial transactions between the nation and the rest of the world, including portfolio and fixed investment flows and movements in foreign reserves.

Financial and Fiscal Commission (FFC) An independent body established by the Constitution to make recommendations to Parliament and provincial legislatures about financial issues affecting the three spheres of government.

Financial year The 12 months according to which companies and organisations budget and account. See also fiscal year.

Fiscal incidence The combined overall economic impact that fiscal policy has on the economy. See also fiscal policy.

Fiscal policy Policy on taxation, public spending and borrowing by the government.

Fiscal space The ability of government's budget to provide additional resources for a desired programme without jeopardising fiscal or debt sustainability.

Fiscal year The 12 months on which government budgets are based, beginning 1 April and ending 31 March of the subsequent calendar year.

Fixed investment Spending on buildings, machinery and equipment contributing to production capacity in the economy. See also gross fixed capital formation

Foreign direct investment (FDI) The acquisition of controlling interest by governments, institutions or individuals of a business in another country.

Forward book The total amount of contracts for the future exchange of foreign currency entered into by the Reserve Bank at any given point in time.

Forward cover Transactions involving an agreed exchange rate at which foreign currency will be purchased or sold at a future date.

Forward markets Markets in which currencies, commodities or securities are bought and sold at agreed prices for delivery at specified future dates.

Fringe benefit A benefit or advantage you receive from your employer. Normally a non-cash benefit e.g. the use of a company car

Fuel levy An excise tax on liquid fuels.

Function shift The movement of a function from one departmental vote or sphere of government to another.

Funded pension arrangements A pension scheme in which expected future benefits are funded in advance and as entitlement accrues.