E-TRAINING ON COMPILATION OF IN...
Transcript of E-TRAINING ON COMPILATION OF IN...
E-TRAINING ON COMPILATION OF SUT IN AFRICA
ACS/ESNA2017
Session 1-Reading Materials: Sequence
of accounts
Sequence of accounts
Economic Commission for Africa
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Accounts
Uses Resources
P1 Output 3604
P2 Intermediate Consumption 1883
K1 Consumption of Fixed Capital 222
B1n Value added 1499
Total 3604 Total 3604
• Value Added = Output - Intermediate consumption
Economic Commission for Africa
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Accounts
Uses Resources
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Production
Account
P1 Output 302 348 1000 1954 3604
1883 1029 500 222 132 P2
Intermediate
Consumption
222 169 27 26 K1
Consumption of
Fixed Capital
1499 1256 99 144 B1n Value added, net
3604 2454 500 348 302 Total 302 348 1000 1954 3604
• Production account with domestic sectors
Economic Commission for Africa
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Accounts
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Production
Account
P7
Imports of
goods and
services 499 499
540 540 P6
Exports of goods
and services
P1 Output 302 348 1000 1954 3604 3604
1883 1883 1029 500 222 132 P2
Intermediate
Consumption
222 222 100 69 27 26 K1
Consumption of
Fixed Capital
1499 1499 825 431 99 144 B1n
Value added,
net
-41 -41 B11
External
balance of
goods and
4103 499 3604 2454 500 348 302 Total 302 348 1000 1954 3604 499 4103
• Production account with the rest of the world
Economic Commission for Africa
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Accounts
• Identities:
Account totals on the uses side = Account totals on the resources side
Economic Commission for Africa
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Accounts
• Generation of income account
• After the production account, the next account in the sequence shows how gross value added is distributed to labor, capital, government and, where necessary, flows to and from ROW. This distribution process is called the primary distribution of income and includes:
Generation of income account
Allocation of primary income account
Economic Commission for Africa
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Generation of income account
Uses Resources
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Generation of
income account
B1n Value added, net 144 99 431 825 1499 1499
1150 1150 730 300 98 22 D1
Compensation of
Employees
94 94 72 20 1 1 D29
Other Taxes on
Production
-36 -36 -35 0 0 -1 D39
Other Subsidies
on Production
291 291 58 111 0 122 B2n
Operating
Surplus / Mixed
Income, net
1499 0 1499 825 431 99 144 Total 144 99 431 825 1499 0 1499
Economic Commission for Africa
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Accounts
• The allocation of primary income account shows the remaining part of the primary distribution of income. Contains
Resources side: operating surplus / mixed income and other forms of income on the resources side: compensation of employees, net taxesand incomes received from sources other than production (property income)
Uses side: property income paid recorded.
The balance for this account is called primary income.
Economic Commission for Africa
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Allocation of primary income account
Property income: income receivable by the owner of a financial asset or a tangible non-produced asset in return for providing funds to or putting the tangible non-produced asset at the disposal of, another institutional unit; it consists of:
Interest;
Distributed income of corporations (i.e. dividends);
Reinvested earnings on direct foreign investment;
Property income attributed to insurance policy holders;
Rent.
Economic Commission for Africa
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Allocation of primary income accountUses Resources
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Allocation of primary
income account
B11
External balance of
goods and services -41 -41
B2n
Operating Surplus /
Mixed Income, net 122 0 111 58 291 291
6 6 D1
Compensation of
Employees 1154 1154 2 1156
D2
Taxes on production
and imports 235 235 235
D21 Taxes on products 141 141 141
D29
Other Taxes on
Production 94 94 94
D3 Subsidies -44 -44 -44
D31
Subsidies on
products -8 -8 -8
D39
Other Subsidies on
Production -36 -36 -36
435 44 391 272 30 42 47 D4 Property income 130 22 15 230 397 38 435
1642 1642 16 96 171 1359 B5n Primary income, net
-51 -51
Current external
balance
2032 -1 2033 288 126 213 1406 Total 1406 213 126 288 2033 -1 2032
Economic Commission for Africa
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Secondary distribution of income account
The secondary distribution of income account follows the conversion of
primary income into disposable income, which is the income available for
final consumption.
Economic Commission for Africa
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Secondary distribution of income account
Includes:
Current taxes on income, wealth;
Net social contributions;
Social benefits other than social transfers in kind.
Other current transfers; these consist of the following:
Net premiums and claims for non-life insurance;
Current transfers between different kinds of government units;
Current transfers such as those between different households.
Economic Commission for Africa
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Secondary distribution of income account
Uses Resources
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Secondary
distribution of income
accountCurrent external
balance -51 -51
B5n Primary income, net 1359 171 96 16 1642 1642
213 1 212 29 5 178 D5
Current taxes on
income, wealth, etc. 213 213 213
333 333 333 D61
Net social
contributions 4 50 9 270 333 333
384 384 167 100 112 5 D62
Social benefits other
than social transfers
in kind 384 384 384
299 16 283 69 5 136 73 D7
Other current
transfers 72 104 10 58 244 55 299
1604 1604 79 5 290 1230 B6n
Disposable income,
net
-13 -13
Current external
balance
2820 4 2816 344 115 538 1819 Total 1819 538 115 344 2816 4 2820
Economic Commission for Africa
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Accounts
• Use of disposable income account shows how the available disposable income is used up, mainly on final consumption expenditures.
• These include expenditures by households and by government.
Economic Commission for Africa
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Use of disposable income accountUses Resources
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Use of disposable
income account
Current external
balance -13 -13
B6n
Disposable income,
net 1230 290 5 79 1604 1604
1399 1399 352 1047 P3
Final consumption
expenditure
11 11 9 2 D8
Adjustment for the
change in pension
entitlements 11 11 11
205 205 70 3 -62 194 B8n Saving, net
-13 -13 B12
Current external
balance
1602 -13 1615 79 5 290 1241 Total 1241 290 5 79 1615 -13 1602
Economic Commission for Africa
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Accounts
• Transactions in non-financial assets are recorded the capital account, the first accumulation account.
• The capital account records transactions linked to:
Acquisitions of non-financial assets;
Capital transfers involving the redistribution of wealth.
Economic Commission for Africa
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Capital transfers
• Capital transfers are transactions, either in cash or in kind, in which the ownership of an asset (other than cash and inventories) is transferred from one institutional unit to another, or in which cash is transferred to enable the recipient to acquire another asset, or in which the funds realized by the disposal of another asset are transferred. There can be capital transfers to and from ROW.
Economic Commission for Africa
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Capital transfers
• Capital transfers can be divided into:
Capital taxes;
Investment grants;
Other capital transfers.
Economic Commission for Africa
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Capital accountChanges in assets Changes in liabilities and net worth
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Capital account
B12
Current external
balance -13 -13
B8n Saving, net 194 -62 3 70 205 205
414 414 216 100 38 60 P5g
Gross capital
formation
-222 -222 -109 -60 -27 -26 K1
Consumption fixed
capital
0 0 -7 2 5 K2
Acquisitions less
disposals of non-
produced assets
D9
Capital transfers,
receivable 23 6 0 33 62 4
D9
Capital transfers,
payable -8 -34 0 -23 -65 -1 -66
B10.1
Changes in net worth
due to saving and
capital transfers 209 -90 3 80 202 -10 192
0 -10 10 -20 -37 -103 170 B9
Net lending(+)/net
borrowing(-)
192 -10 202 80 3 -90 209 Total
Economic Commission for Africa
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Macroeconomic Aggregates
• Gross Domestic Product (GDP);
• Gross National Income (GNI);
• Gross National Disposable Income;
• Gross Saving.
Economic Commission for Africa
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GDP- production approach
B1n Value added, net 1499
K1
Consumption of Fixed
Capital 222
B1g Value added, gross 1721
D21 Taxes on products 141
D31 Subsidies on products -8
Gross Domestic Product 1854
Economic Commission for Africa
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GDP- expenditure approach
P3
Final consumption
expenditure 1399
P5g Gross capital formation 414
P6
Exports of goods and
services 540
P7
Imports of goods and
services -499
Gross Domestic Product 1854
Economic Commission for Africa
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GDP- income approach
D1 Compensation of Employees 1150
D29 Other Taxes on Production 94
D39 Other Subsidies on Production -36
B2n
Operating Surplus / Mixed
Income, net 291
B1n Value added, net 1499
K1 Consumption of Fixed Capital 222
B1g Value added, gross 1721
D21 Taxes on products 141
D31 Subsidies on products -8
Gross Domestic Product 1854
Economic Commission for Africa
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GNI
GNI includes products and services produced by enterprises owned by a country's citizens.
GNI adjusts GDP for two transactions with ROW, coming from the allocation of primary income account:
- Compensation of employees payable to / receivable from ROW;
- Property income payable to / receivable from ROW.
Economic Commission for Africa
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GNI
Gross Domestic Product 1854
D1
Compensation of Employees
from ROW -2
D1
Compensation of Employees to
ROW 6
D4 Property income from ROW -38
D4
Property income, payable to
ROW 44
Gross National Income 1864
Economic Commission for Africa
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Gross National Disposable Income
• Gross National Disposable Income is based on transactions from the secondary distribution of income account. The flows with ROW are:
Current taxes on income, wealth, etc.;
Current transfers receivable / payable.
Economic Commission for Africa
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Gross National Disposable Income
Gross National Income 1864
D5
Current taxes on income,
wealth, etc. 1
D7
Current transfers
receivable -55
D7 Current transfers payable 16
Gross National Disposable Income 1826
Economic Commission for Africa
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Gross saving
B6 Disposable income, gross 1826
P3 Final consumption expenditure -1399
B8 Saving, gross 427
• Gross saving for the total economy equals Gross national disposable income net of consumption expenditure
• It is the balancing item in the use of disposable income account
Economic Commission for Africa
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Gross capital formation
B12 Current external balance -13B8 Saving, gross 427P5 Gross capital formation 414
• gross saving plus current account balance of the rest of the world equals Gross capital formation for total (total economy and rest of the world), when the statistical discrepancy is zero
• Net lending/borrowing for total economy also equals current account balance plus capital account balance