GAO Glossary of Terms and Definitions (September 2005)

Government-Sponsored Enterprise (GSE)

A privately owned and operated federally chartered financial institution that facilitates the flow of investment funds to specific economic sectors. GSEs, acting as financial intermediaries, provide these sectors access to national capital markets.

The activities of GSEs are not included in the federal budget’s totals because they are classified as private entities. However, because of their relationship to the government, detailed statements of financial operations and conditions are presented as supplementary information in the budget document. For the purposes of the Congressional Budget Act of 1974, as amended (2 U.S.C. § 622(8)), an entity must meet certain criteria to qualify as a GSE. (For distinctions, see Mixed-Ownership Government Corporation; Off-Budget; Wholly-Owned Government Corporation.)

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