Government Finance Statistics Manual 2014

(nextflipdebug2) #1

366 Government Finance Statistics Manual 2014



  • Households’ actual social contributions (D613)

  • Households’ social contributions supplements
    (D614).
    A7.46 Th e amount recorded for net social contri-
    butions receivable by units operating social insurance
    schemes can be diff erent in the GFS and SNA datasets
    due to diff erences in the treatment of contributions
    to employment-related pension schemes. In the SNA,
    amounts payable to the operator of the scheme as so-
    cial contributions (D6111, D6121, and D6131) are in-
    cluded in the secondary distribution of income, with a
    subsequent adjustment for the change in pension enti-
    tlements to record the incurrence of pension liabilities
    (F63 in SNA). GFS record social contributions payable
    to employment-related schemes providing pensions
    and other retirement benefi ts directly as transac-
    tions increasing the scheme’s liabilities for pension
    entitlements (GFS item 33063) by the operator of the
    scheme.^16 In the SNA, all social benefi ts payable, in-
    cluding pensions and other retirement benefi ts, are re-
    corded either in the secondary distribution of income
    account as social benefi ts other than social transfers in
    kind (D62), or in the redistribution of income account
    as social transfers in kind (D63). In addition, all pen-
    sions and other retirement social benefi ts payable are
    recorded as a reduction in pension entitlements (F63).
    A7.47 Unlike the SNA, transfer expense in GFS ex-
    cludes government employee pension and retirement
    benefi ts payable. Th ese benefi ts are reported only as
    a transaction reducing liabilities for pension entitle-
    ments (GFS liability item 33063). As a result, GFS does
    not need the item for adjustment for change in pen-
    sion entitlements. Also, unlike in the SNA, benefi ts in
    the form of goods and services produced by general
    government units are not recorded as social benefi ts
    in GFS, but in the various GFS expense categories cor-
    responding to the costs of producing these goods and
    services, such as compensation of employees, and use
    of goods and services, etc.
    A7.48 As stated in Box A7.1, goods and services
    produced by the general government sector and
    provided as social benefi ts in kind, grants in kind,
    or transfers in kind are recorded in the SNA as the
    production of output and a transfer to the benefi cia-
    ries. Th ese transfers are recorded in the secondary


(^16) Actual and imputed contributions to pension and other retire-
ment benefi t schemes are therefore excluded from GFS revenue
from social contributions (GFS revenue category 12).
distribution of income account, as if received in cash
by the benefi ciaries, accompanied by a sale of the out-
put to the benefi ciaries.
A7.49 Other current transfers (D7) in the SNA are
a disparate collection of entries that are found in vari-
ous categories in GFS:



  • Net nonlife insurance premiums (D71) is the
    equivalent of net nonlife insurance premiums (GFS
    revenue item 14511 and GFS expense item 28311),
    adjusted for the imputation of the sale or purchase of
    insurance services, as described in paragraph A7.29.

  • Nonlife insurance claims (D72) are the equiva-
    lent of the current nonlife insurance claims in
    GFS (GFS revenue item 14513and GFS expense
    items 28313).

  • Current transfers within general government
    (D73) and current international cooperation
    (D74) in the SNA are recorded in GFS as current
    grants receivable (GFS revenue categories 1311,
    1321, or 1331) or payable (GFS expense catego-
    ries 2611, 2621, or 2631) except for goods and
    services produced by general government units
    and distributed in kind (see Box A7.1).

  • Miscellaneous current transfers (D75) in the
    SNA are recorded in GFS as fi nes, penalties, and
    forfeits (GFS revenue item 143), other current
    transfers not elsewhere classifi ed (GFS revenue
    item 14412), current transfers not elsewhere clas-
    sifi ed (GFS expense item 2821), adjusted with
    transfers of goods and services produced by gen-
    eral government units and distributed in kind
    (see Box A7.1).
    A7.50 Th e balancing item of the secondary dis-
    tribution of income account is disposable income.
    For households, this income can be used for fi nal
    consumption expenditure and saving. For nonfi nan-
    cial and fi nancial corporations, disposable income
    is income not distributed to owners of equity minus
    taxes payable on income. Th e disposable income can
    be presented gross or net of consumption of fi xed
    capital.


Th e redistribution of income in kind account

A7.51 Th e redistribution of income in kind account
records social benefi ts in kind and transfers of indi-
vidual nonmarket goods and services from the govern-
ment sector to the household sector using the goods
or services. Because of the nature of the transactions
Free download pdf