Expense 131
so that in practice they are usually grouped with the
relevant tax payable (see also paragraph 5.24). If this
tax that includes the interest on late payment of taxes
is payable by a general government or public sector
unit, then it is classifi ed as a tax payable from one
government unit to another and classifi ed as a com-
ponent of transfers not elsewhere classifi ed (282) (see
paragraph 6.122). For purposes of consolidation, the
relevant government units should be identifi ed as
counterparty to the transaction.
6.83 Total interest payable is subdivided into inter-
est payable to nonresidents (241), interest payable to
residents other than general government (242), and in-
terest payable to other general government units (243).
Interest payable to other general government units
will have a nonzero value when statistics are com-
piled for a subsector of the general government sector
or public corporations. For the general government
sector, all such transactions are eliminated in con-
solidation. To allow for consolidation of the general
government and public sectors, data could further
identify a breakdown according to the recipient of the
interest.
Subsidies (25)^30
6.84 Subsidies (25) are current unrequited trans-
fers that government units make to enterprises on
the basis of the level of their production activities or
the quantities or values of the goods or services they
produce, sell, export, or import. Subsidies are re-
ceivable by resident producers or importers, and in
exceptional cases, nonresident producers of goods
and services. Subsidies may be designed to infl uence
levels of production, the prices at which outputs are
sold, or the profi ts of the enterprises. Subsidies in-
clude payable tax credits receivable by enterprises for
these purposes (see paragraph 5.31). By the nature of
subsidies, only government units incur an expense in
this form. When an institutional unit, other than a
government unit, incurs subsidy expense on behalf of
a government unit, the subsidy should be attributed
in accordance with attribution guidelines, similar to
those for tax attribution (see paragraphs 5.32–5.39).
When an institutional unit acts on behalf of another
unit to distribute subsidies, these should be reported
as fi nancial transactions by the distributing agency.
(^30) Subsidies are described in the 2008 SNA, paragraphs
7.98–7.106.
Subsidies payable should be recorded only in the ac-
count of the entity that has the control over the sub-
sidy scheme.
6.85 Subsidies are payable to producers only, not
to fi nal consumers, and are current transfers only,
not capital transfers. Transfers that government units
make directly to households as consumers and most
transfers to nonprofi t institutions serving households
are recorded as either social benefi ts (27) or transfers
not elsewhere classifi ed (282), depending on the rea-
son for the payment. Most transfers made to other
general government units are included in grants (26).
6.86 In some cases, general government units,
nonprofi t institutions serving households, and house-
holds can receive subsidies in their capacity as pro-
ducers. To be classifi ed as subsidies, such payments
must depend on general regulations of the subsidy
scheme applicable to all producers, market and non-
market. For example, a general government unit may
pay a subsidy to all employers (including general
government units and/or nonprofi t institutions) that
employ members of a specifi ed profession or people
with a specifi ed disability. Subsidies payable to house-
holds include only amounts payable to households as
producers—therefore, they will include only amounts
payable to those unincorporated household enter-
prises that do not qualify as a quasi-corporation. In
practice, many schemes called “subsidies” provide so-
cial benefi ts to households.
6.87 As indicated in Table 6.6, subsidies may be
classifi ed according to the institutional sector of the
recipients. Subsidies to public corporations (251) and
to private enterprises (252) are further subdivided into
nonfi nancial or fi nancial corporations and enterprises.
Table 6.6 Detailed Classifi cation of Subsidies (25)
(^25) Subsidies^1
251 To public corporations
2511 Public nonfi nancial corporations
2512 Public fi nancial corporations
252 To private enterprises
2521 Private nonfi nancial enterprises
2522 Private fi nancial enterprises
(^253) To other sectors^2
(^1) Further breakdown/“of which” lines could identify whether
these subsidies are subsidies on products or production.
(^2) Further breakdown/“of which” lines could allow for the identifi -
cation of subsectors and individual units (see Table 3.1).