1. Part V. Balancing the system Marcel Pommée
9 November
Balancing the system: Interaction and relations between the three systems
Marcel Pommée
Statistics Netherlands: National accounts in Practice

2. Relations between the three systems
Part V. Balancing the system
9 November
Relations between the three systems
Supply and use tables
Sector accounts
Labour accounts
(Extensions of the core system)
Systems are interlinked and can enrich each
other
Statistics Netherlands: National accounts in Practice

3. Part V. Balancing the system
9 November
Supply and Use Tables
Supply
table (
basic
prices )
Margins
Taxes
Subsidies
Use
purchasers
Value
added =
Important features:
Focus on production process
Provides information on important macro economic variables like:
- Gross domestic product
- Value added by industry
- Price- and volume changes
- Final expenditures
- Etcetera
Statistics Netherlands: National accounts in Practice

4. Part V. Balancing the system
9 November
Institutional Sector Accounts
Important features:
Focus on (re)distribution of income, financial processes and accumulation of wealth
Provides information on for example:
- Saving
- Lending, borrowing
- Income and capital transfers
- Etcetera
I. Production account
Uses
(for all sectors excluding ROW)
Resources
Intermediate consumption
456,1
Output (basic prices)
870,4
B1g = Gross domestic product (mp)
414,3
Taxes less subsidies on products
50,9
Consumption of fixed capital
69,4
B1n = Net domestic product (mp)
395,8
921,3
II.1.1 Generation of income account
Compensation of employees
238,9
Net domestic product (market prices)
Taxes on production and imports
58,9
Less: subsidies
-8,1
B2n = Operating surplus or
mixed income
106,1
II.1.2 Primary distribution of income
(for all sectors)
Property income
222,9
Operating surplus or mixed income
238,6
56,4
-6,9
B5n = Net national income
400,1
228,8
623,0
II.2 Secondary distribution of income
Current taxes on income, wealth
52,3
Net national income
Social contributions
115,0
53,2
Social benefits
81,4
115,4
Other current tranfers
122,2
79,9
B6n = Net disposable income
393,5
115,8
764,4
II.4 Use of income account
(households, government and NPISH) R
Final consumption expenditure
343,3
Net disposable income
Adjustment for change in net equity
of households on pension funds
19,4
19,7
B8n = Net saving
50,5
413,2
III.1 Capital account ?
in Assets
in Liabilities
Gross fixed capital formation
93,0
Net saving
Less: consumption of fixed capital
-69,4
Capital transfers, receivable
16,4
Changes in inventories
-1,4
Capital transfers, payable
-17,4
Acquisitions less disposals of valuables -
Acquisitions less disposals of non-
produced non-financial assets
B8n = Net lending(+)/borrowing(-)
27,3
49,5
Statistics Netherlands: National accounts in Practice

5. Part V. Balancing the system
9 November
Labour Accounts
Important features:
Focus on labour
Provides information on all aspect of labour:
- remuneration of labour
- Labour volume
- Types of labour
- Etcetera
Statistics Netherlands: National accounts in Practice

6. Part V. Balancing the system
9 November
Link between SUT and institutional sector accounts
Sector accounts: 5 sectors
I. Production account
Uses
(for all sectors excluding ROW)
Resources
Intermediate consumption
456,1
Output (basic prices)
870,4
B1g = Gross domestic product (mp)
414,3
Taxes less subsidies on products
50,9
Consumption of fixed capital
69,4
B1n = Net domestic product (mp)
395,8
921,3
II.1.1 Generation of income account
Compensation of employees
238,9
Net domestic product (market prices)
Taxes on production and imports
58,9
Less: subsidies
-8,1
B2n = Operating surplus or
mixed income
106,1
II.1.2 Primary distribution of income
(for all sectors)
Property income
222,9
Operating surplus or mixed income
238,6
56,4
-6,9
B5n = Net national income
400,1
228,8
623,0
II.2 Secondary distribution of income
Current taxes on income, wealth
52,3
Net national income
Social contributions
115,0
53,2
Social benefits
81,4
115,4
Other current tranfers
122,2
79,9
B6n = Net disposable income
393,5
115,8
764,4
II.4 Use of income account
(households, government and NPISH) R
Final consumption expenditure
343,3
Net disposable income
Adjustment for change in net equity
of households on pension funds
19,4
19,7
B8n = Net saving
50,5
413,2
III.1 Capital account ?
in Assets
in Liabilities
Gross fixed capital formation
93,0
Net saving
Less: consumption of fixed capital
-69,4
Capital transfers, receivable
16,4
Changes in inventories
-1,4
Capital transfers, payable
-17,4
Acquisitions less disposals of valuables -
Acquisitions less disposals of non-
produced non-financial assets
B8n = Net lending(+)/borrowing(-)
27,3
49,5
Supply and use tables:
300 industries
Supply
table (
basic
prices )
Margins
Taxes
Subsidies
Use
purchasers
Value
added =
Cross classification for:
- Output
- Intermediate consumption
Compensation of employees
- Other taxes less subsidies on production
- Final consumption expenditure
Gross capital formation
Statistics Netherlands: National accounts in Practice

7. Link between SUT and institutional sector accounts - example
Supply table
Sectors: Production account
Industry
Production
value
Forestry
Private ent.
State forestry
dep.
150
100 50
Retail trade
self employed
part of
enterprise
200
160 40
Banking
180
Total supply
………….
S.11
S.12
S.13
S.14
S.15
….. ……
100 40
180 50
160

8. Part V. Balancing the system
9 November
Link between SUT and institutional sector accounts - overview
Supply
table (
basic
prices )
Margins
Taxes
Subsidies
Use
purchasers
Value
added =
I. Production account
Uses
(for all sectors excluding ROW)
Resources
Intermediate consumption
456,1
Output (basic prices)
870,4
B1g = Gross domestic product (mp)
414,3
Taxes less subsidies on products
50,9
Consumption of fixed capital
69,4
B1n = Net domestic product (mp)
395,8
921,3
II.1.1 Generation of income account
Compensation of employees
238,9
Net domestic product (market prices)
Taxes on production and imports
58,9
Less: subsidies
-8,1
B2n = Operating surplus or
mixed income
106,1
II.1.2 Primary distribution of income
(for all sectors)
Property income
222,9
Operating surplus or mixed income
238,6
56,4
-6,9
B5n = Net national income
400,1
228,8
623,0
II.2 Secondary distribution of income
Current taxes on income, wealth
52,3
Net national income
Social contributions
115,0
53,2
Social benefits
81,4
115,4
Other current tranfers
122,2
79,9
B6n = Net disposable income
393,5
115,8
764,4
II.4 Use of income account
(households, government and NPISH) R
Final consumption expenditure
343,3
Net disposable income
Adjustment for change in net equity
of households on pension funds
19,4
19,7
B8n = Net saving
50,5
413,2
III.1 Capital account ?
in Assets
in Liabilities
Gross fixed capital formation
93,0
Net saving
Less: consumption of fixed capital
-69,4
Capital transfers, receivable
16,4
Changes in inventories
-1,4
Capital transfers, payable
-17,4
Acquisitions less disposals of valuables -
Acquisitions less disposals of non-
produced non-financial assets
B8n = Net lending(+)/borrowing(-)
27,3
49,5
Supply table:
- Output
Taxes less subsidies on production
Use table:
- Intermediate consumption
(Components of ) value added
Final expenditure
(consumption, gross fixed capital
formation, change in inventories)
Statistics Netherlands: National accounts in Practice

9. Part V. Balancing the system
9 November
Link between supply and use tables and labour accounts
Supply
table (
basic
prices )
Margins
Taxes
Subsidies
Use
purchasers
Value
added =
Labour productivity
Statistics Netherlands: National accounts in Practice

10. Part V. Balancing the system
9 November
Relations between SUT, Sector accounts, Labour accounts and extensions
Supply and use tables
Sector accounts
Supply
table (
basic
prices )
Margins
Taxes
Subsidies
Use
purchasers
Value
added =
I. Production account
Uses
(for all sectors excluding ROW)
Resources
Intermediate consumption
456.1
Output (basic prices)
870.4
B1g = Gross domestic product (mp)
414.3
Taxes less subsidies on products
50.9
Consumption of fixed capital
69.4
B1n = Net domestic product (mp)
395.8
921.3
II.1.1 Generation of income account
Compensation of employees
238.9
Net domestic product (market prices)
Taxes on production and imports
58.9
Less: subsidies
-8.1
B2n = Operating surplus or
mixed income
106.1
II.1.2 Primary distribution of income
(for all sectors)
Property income
222.9
Operating surplus or mixed income
238.6
56.4
-6.9
B5n = Net national income
400.1
228.8
623.0
II.2 Secondary distribution of income
Current taxes on income, wealth
52.3
Net national income
Social contributions
115.0
53.2
Social benefits
81.4
115.4
Other current tranfers
122.2
79.9
B6n = Net disposable income
393.5
115.8
764.4
II.4 Use of income account
(households, government and NPISH) R
Final consumption expenditure
343.3
Net disposable income
Adjustment for change in net equity
of households on pension funds
19.4
19.7
B8n = Net saving
50.5
413.2
III.1 Capital account ?
in Assets
in Liabilities
Gross fixed capital formation
93.0
Net saving
Less: consumption of fixed capital
-69.4
Capital transfers, receivable
16.4
Changes in inventories
-1.4
Capital transfers, payable
-17.4
Acquisitions less disposals of valuables -
Acquisitions less disposals of non-
produced non-financial assets
B8n = Net lending(+)/borrowing(-)
27.3
49.5
Energy, Namea, TSA
Labour accounts
Statistics Netherlands: National accounts in Practice

11. Checks within each system
SUT
Production/Intermediate consumption ratio
Analysis of price and volume changes
Analysis of taxes and expenditure
Comparison with figures for previous years
Supply
table (
basic
prices )
Margins
Taxes
Subsidies
Use
purchasers
Value
added =
Sector Accounts
I. Production account
Uses
(for all sectors excluding ROW)
Resources
Intermediate consumption
456.1
Output (basic prices)
870.4
B1g = Gross domestic product (mp)
414.3
Taxes less subsidies on products
50.9
Consumption of fixed capital
69.4
B1n = Net domestic product (mp)
395.8
921.3
II.1.1 Generation of income account
Compensation of employees
238.9
Net domestic product (market prices)
Taxes on production and imports
58.9
Less: subsidies
-8.1
B2n = Operating surplus or
mixed income
106.1
II.1.2 Primary distribution of income
(for all sectors)
Property income
222.9
Operating surplus or mixed income
238.6
56.4
-6.9
B5n = Net national income
400.1
228.8
623.0
II.2 Secondary distribution of income
Current taxes on income, wealth
52.3
Net national income
Social contributions
115.0
53.2
Social benefits
81.4
115.4
Other current tranfers
122.2
79.9
B6n = Net disposable income
393.5
115.8
764.4
II.4 Use of income account
(households, government and NPISH) R
Final consumption expenditure
343.3
Net disposable income
Adjustment for change in net equity
of households on pension funds
19.4
19.7
B8n = Net saving
50.5
413.2
III.1 Capital account ?
in Assets
in Liabilities
Gross fixed capital formation
93.0
Net saving
Less: consumption of fixed capital
-69.4
Capital transfers, receivable
16.4
Changes in inventories
-1.4
Capital transfers, payable
-17.4
Acquisitions less disposals of valuables -
Acquisitions less disposals of non-
produced non-financial assets
B8n = Net lending(+)/borrowing(-)
27.3
49.5
Comparison with figures for previous years
Development of statistical discrepancy
Comparing transactions that should be linked in some way (for example interest paid and loans) LA
Hourly wage rate
Development of labour volume, number of jobs, etc.

12. Advantages of linking the three systems
► Consistency of all figures is guaranteed;
► Errors or unlikely figures that otherwise could be overlooked
will be traced more easily, for example:
- SUT <> LA:
analysis of labour productivity development
- SUT <> SA:
comparing balancing items from sector accounts with
SUT- figures (for example: household consumption from
the SUT with household Disposable income and Saving
from the sector accounts)

13. EXERCISE