African Centre for Statistics

United Nations Economic Commission for AfricaUnited Nations Economic Commission for Africa

Expert Group Meeting: to review “Handbook on Supply and Use Table, Compilation ,Application ,and Good Practice”

Presenter Elias FissehaEconomic Statistics and National Accounts Section

African Centre for Statistics24-28 October 2011

Kaleb Hotel, Addis Ababa, Ethiopia

African Centre for Statistics

CHAPTER 12: INDIVIDUAL & COLLECTIVE SERVICES

African Centre for Statistics

Outline of Presentation

• Actual consumption versus Consumption Expenditure.

• Individual services• Collective Services• Comments and suggestion• Point of Discussion

African Centre for Statistics

1. Actual Consumption versus Consumption Expenditure

• Household spending on consumer goods and services is less than what they actually consuming. This is because government provide services to households free or at price below the cost of production.

• Government actual consumption is the service they provide for the community as a whole such as defense, law and order, they are known as collective services.

• Services such as health, education & social protection are called individual services.

• For ICP purpose, actual consumption of household is compared across the countries.

African Centre for Statistics

Box1 Compares Consumption expenditure with actual consumption

Consumption Expenditure Actual Consumption

Households Household Final Consumption Expenditure (HFCE)

• Household final consumption expenditure (HFCE)•Individual Consumption expenditure•Final consumption expenditure of (NPISH)

Government Government final consumption expenditure (GFCE)

Collective consumption expenditure of government

NPISH Final Consumption expenditure of NPISH

Nil

African Centre for Statistics

2. Individual Services

• Expenditure on individual service constitute individual consumption expenditure by government.

• Individual services are services that government provides to specific identifiable households. i.e. such as health and education which are consumed by individual households.

• The distinction between individual and collective services is made on COFOG classification

• All expenditure by NPISH is individual service and part of household’s actual consumption

African Centre for Statistics

3. Collective Services

• Government current expenditure that is not individual is termed as collective.

• The collective service consumption includes general public services, defense, public order and safety, economic affairs and environment protection , the setting up of enforcement of public standards, research and development.

• Collective consumption expenditure does not involve the purchase of goods and services for delivery to households.

African Centre for Statistics

4.Government Consumption Expenditure

A. Individual Consumption Expenditure by Government

Housing 13.01.11.1 Housing (IS)

Health Health Benefits and Reimbursements 13.02.11.1 Pharmaceutical Products (IS) 13.02.11.2 Other medical products (IS) 13.02.12.1 Out-patient medical service (IS) Production of health services 13.02.21.1 Compensation of employees (IS) 13.02.23.1 Gross operating surplus (IS) 13.02.25.1 Receipts from sales (IS)

Recreation and culture 13.03.11.1 Recreation and culture (IS)

Education

African Centre for Statistics

Gov’t Consume Con’t

Education benefits and Reimbursements 13.04.11.1 Education benefits and reimbursements ( IS) Production of education services 13.04.21.1 Compensation of employees (IS) 13.04.22.1 Intermediate Consumption (IS) 13.04.23.1 Gross operating surplus (IS) 13.04.24.1 Net taxes on production (IS) 13.04.25.1 Receipt from sales (IS)

Social Protection 13.05.11.1 Social protection (IS)

B. Collective Consumption Expenditure by Government 14.01.11.1 Compensation of employee (CS) 14.01.12.1 Intermediate Consumption (CS) 14.01.13.1 Gross operating surplus (CS) 14.01.14.1 Net taxes on production (CS) 14.01.15.1 Receipts from sales (CS)

African Centre for Statistics

5. Comments and Suggestion

• The chapter is small and clear• It is better to elaborate the chapter or merge with other

chapter 10.

African Centre for Statistics

6. Point of Discussion

• What are the best practice to capture Household actual consumption expenditure on household income consumption and expenditure survey?

African Centre for Statistics

United Nations Economic Commission for AfricaUnited Nations Economic Commission for Africa

Thank you

Please visit us atWebsite: http://ecastats.uneca.org/