Chapter 7. Balancing supply and use Comments and suggestions. By Liv Hobbelstad Simpson. 1. Why SNA 1993 and not 2008 SNA
1. Why SNA 1993 and not 2008 SNA
The Global Office has decided to follow SNA 1993 for conceptual compliance, since 2008 SNA is yet to be implemented by the countries (barring few). The NA data to be supplied for 2011 ICP by the countries should meet 1993 SNA standards.
COMMENT: National Accounts with SUT based on final statistics for the year 2011 will not be compiled before in the year 2013. Following 1993 SNA in 2013 is a problem for those countries who are implementing 2008 SNA earlier.
2. The ISWGNA prepared a table on 2008 SNA implementation milestones to the 42nd session of the UN Statistical Commission (UNSC), February 2011:
Milestone 1 Basic indicators of GDP Complementary Data system:
Supply and use table
5.1. Output should be classified into the following main types:
If ISIC Revision 4 is introduced for register and statistics, the industry classification used should be a NA-ISIC aggregation of ISIC Rev. 4, adapted for the economy of the country.
The product classification for SUT should be a NA-CPC aggregation of CPC Version 2.0,
Countries establishing SUT for the first time should start with the new classifications.
The Use Table should have the following classification
6.1. The methodology for balancing SUT is of particular
important for the quality of the National Accounts..
Ref. SNA 1993, chapter C. Supply and use tables, paragraph 15.57 and 15.58.:
In general, when preparing supply and use tables and making the balancing between the two sides, there is a choice between two lines of adjusting statistical data:
Supply of each product at basic prices can be adjusted to a purchasers’ prices valuation to allow balancing with uses at purchasers’ prices.
Each of the uses at purchasers’ prices could be adjusted to a basic prices’ valuation to match with supply at basic prices.
SNA 93, paragraph 15.129 The supply and use table at basic prices are a step forward to the conversion towards input-output tables at basic prices.
SNA 93, paragraph 15.161 The supply and use tables at basic prices are the most complete consistent framework for constant price estimation.
Adjustment columns required to bring supply at basic prices up to purchasers’ prices.
To compile the columns of VAT, other taxes and subsidies and trade margins by products in the Supply table, the distribution among uses should be known from the Use table
Only non refundable VAT should be recorded, mainly for products to Household consumption.
Subsidies as for fertilizer may be paid to all users, while product taxes may not be paid by some users
as for products to export.
Trade margin can be higher for a product to private consumptionthan for intermediate consumption
8 misleading and has to be corrected. Example with manual balancing of garments
It states in the Handbook: The only product taxes for advertising services are value added taxes.
These must have been paid by households because
enterprises do not pay VAT on intermediate consumption and NPISH do not pay VAT either
Comment: The Government accounts will only give information about total value added tax received during a budget year, but not by type of products. In many countries the budget year is different from the calender year. The value of VAT, product taxes and subsidies have to be corrected to an estimated accrual value for the calender year
The Supply table is shown as a matrix of domestic production with 3 products (commodities) and three industries (kinds of activity).
Comment: RAS should be used at a final stage of the balancing of SUT when the remaining differences between supply and use of each products are small.
The Supply table with figures for production and imports of products are more reliable than the Use table with distribution of products by users
RAS should only be used at the final stage of balancing the SUT by correcting the Use Table.