Introduction:
National accounts are the basic tools for planning and forecasting, as well as for
the preparation of policies and economic strategies which are planned by decision
makers in the State, beside its importance to the different sectoral and economical
systems. The national accounts importance comes from the fact that it is used by
many authorities, inside and outside the country. At the local level, the national
accounts data are used as a measure of growth of economic and social
development. It is also used to assess the economic situation at the macro and
sectoral level according to international standards. The compilation and
presentation of tables for macro-economic variables of national accounts of the
State must have a high degree of accuracy and objectivity, to ensure the quality of
its results and accuracy of its uses. At the international level, the national accounts
variables are considered as the base for the purposes of international comparisons,
in terms of economic performance levels of the country. Therefore, the National
Bureau of Statistics is keen to provide the requirements of the preparation of the
national accounts data, in a timely manner and with a high level of accuracy and
reliability, so that it can meet the needs of all users.
System of National Accounts (SNA) divides the economy into the following
Sectors:
- The Non-financial corporations sector
- The Financial corporations sector which includes banks and insurance companies
- The General government sector (Federal, local and insurance and pension funds)
- The Non-profit institutions serving households
- The Households sector.
- The Rest of the world.
The most important definitions used in national accounts:
Output: Output consists of those goods and services that are produced within an
establishment that become available for use outside that establishment. The output
can also be retained by their owners for own final consumption or for own gross
fixed capital formation, as is the case when the farmers who produce food crops.
They keep some part of the output for their own consumption and put the other part
in the market. Output varies in form, sometimes as goods and other times as
services. The nature of output varies from one economic activity to another activity
and from one sector to another.
Intermediate Consumption: Intermediate consumption consists of the value of
the goods and services consumed as inputs by a process of production and is
divided into:
1) Intermediate Consumption of goods: such as raw materials, fuel, oil, spare parts
and packaging materials, stationery, electricity, water and other supplies needed for
production purposes.
2) Intermediate Consumption of service: such as maintenance and operating
expenses and expenses on research and testing, transportation, transfer and
processing services, hospitality expenses and gifts, costs of training programs,
commissions and residential and non-residential rents and other required services.
Gross Value Added: Gross Value added is the difference between value of output
and value of intermediate consumption and is calculated at the level of institutional
sectors and economic activities.
Net Value Added: Net value added is the difference between gross value added
and consumption of fixed capital.
Consumption of Fixed Capital: Each capital good has some life span and has to
be replaced after its useful life. Consumption of fixed capital is the decline, during
the course of the accounting period, in the current value of the stock of fixed assets
owned and used by a producer as a result of physical deterioration, normal
obsolescence or normal accidental damage.
Compensation of Employees: Compensation of employees is the sum of rewards
in cash or in kind paid by the employer to an employee for work performed by the
latter during the accounting period. Compensation of employees consists of the
following:
1) Wages and salaries in cash: It includes wages and salaries paid in cash on a
regular basis, weekly, monthly or as agreed in contract.
2) Benefits in kind: It includes all the goods and services provided to the
employees without charge such as meals and drinks in restaurants and bars,
furniture and transportation, tickets for personal travel, leisure services, housing,
electricity and water etc.
3) Insurance benefits: It includes pension on retirement and the value of premiums
paid for social insurance such as health insurance, life insurance, insurance against
work injuries etc.
Taxes on Production and Imports: It consists of taxes on products that are paid
for goods or services produced, sold, transferred or disposed of. It also includes
taxes and duties on imports that become payable when the goods enter economic
zone by crossing the border or when services are provided from non-resident units
to resident units. It further includes other taxes on production which consist mainly
of taxes on the ownership or use of land or buildings or other assets.
Operating Surplus: Operating surplus is balancing items in generation of income
account and are defined as value added less compensation of employees less taxes
paid on production plus subsidies received
Gross Fixed Capital Formation: It is the value of acquisitions less disposals of
new or existing fixed assets. Fixed assets consist of both tangible fixed assets
(dwellings, other buildings and structures, other structures, transport equipment,
other machinery and equipment etc.) and intangible fixed assets (computer
software, entertainment, literary or artistic originals, etc.).