On%20strategy%20of%20implementation%20of%20the%20updated%20System%20of%20National%20Accounts%20in%20the%20Russian%20Federation

1
On strategy of implementation of the updated
System of National Accounts in the Russian
Federation
Agenda item 3 Invited paper 16

• Irina Masakova
• Rosstat

2
Current situation

• System of National Accounts in Russia is based on
  concepts of SNA-93.
• Deviation from SNA recommendations was caused by
  
• Current national classifications that differ from
  their international analogues
• Features of functioning of certain economy
  sectors and Russian legislation

3
Until 2003 - OKONKh, from 2003- RCKEA.
Production and generation of income accounts
SNA calculations at the level of 140 groupings
of RCKEA Publication - at the level of RCKEA
sections Until 2007 OKP was used, starting
from January 1, 2008 introduction of OKPD,
harmonized with ISIC In near future coherent
system of value, volume and price indicators will
be created. This will help to broaden the the
range of published indicators by types of
activities In 2005 a classification of
institutional units by sectors of economy was
developed Accounting is performed by sectors
corporations, general government, non-commercial
organizations, serving households, households,
rest of the world In 2-3 years corporations
sector will be divided into financial and
non-financial corporations

4
Classification of revenue and expenditure of the
state budget of the Russian Federation

• Is changing because of
• intention to harmonize national statistical
  classification with the international standards
  on state finance statistics
• needs of public authorities
• conversion keys from the budget classification
  of expenditure by functions of the general
  government (COFOG) to categories of the
  classification by kind of economic activities
• the general government sector accounts for
  2005-2006 have been compiled indicators of
  production and generation of income accounts have
  been compiled according to categories of RCKEA
  while indicators of expenditure have been
  compiled for the first time according to COFOG

5
Difficulties with Input-Output Tables

• introduction of RCKEA was not accompanied by
  simultaneous introduction of the product
  classification harmonized with it
• current statistical observations did not make it
  possible to obtain data needed to establish the
  structure of intermediate consumption
• In order to ensure compliance of production and
  use accounts input-output tables for 2005 an 2006
  were compiled (15 industries and 15 product
  groupings were distinguished )
• Preparation work on development of basic IOT for
  2012 is started

6
Problems of following SNA-93 recommendations

• evaluation of housing rentals
• calculation of Financial Intermediation Services
  Indirectly Measured (FISIM).

7
Valuation of housing rentals

• Housing environment
• former system of financing expenditure on
  maintenance of dwellings is used
• market of dwellings develops and new methods of
  their maintenance and its financing are used
• Expenditure on maintenance of dwellings is partly
  covered from the state budget. Some categories of
  households receive subsidies to finance payments
  of rentals
• At present time market rentals can be established
  only with respect to dwellings rented out by
  households to other households, but it is not
  possible to use these market prices for remaining
  dwellings since the lack of the information on
  structure of dwelling fund and its qualitative
  characteristics.

8
Mixed method for computation of rentals for
dwellings .

• Calculation of housing services
• rented dwellings - actual payments of rentals
• own private dwellings - maintenance cost
• blocks of flats rentals paid to the companies
  providing public utilities
• and subsidies received.
• As the market of dwellings develops and reforms
  in this area are carried out methodological
  principles of valuation of rentals of dwellings
  will be revised .

9
Calculation of FISIM

• Usage of Financial Intermediation Services
  Indirectly Measured (FISIM) is considered as
  intermediate consumption of a conditional sector
  output of which is equal to zero

10
Current situation

• Entirely new information a technological basis
  for statistics was created
• Main classifications are harmonized with their
  international analogues
• Calculation of all the accounts provided by
  SNA-93 except for financial account, other
  changes in volume of assets and liabilities
  accounts, revaluation accounts, assets and
  liabilities balance
• SNA indicators are widely used in macroeconomic
  analysis and forecasting. The range of SNA users
  is considerably increased.

11

• SNA updating process is a natural response
  to changes that take place in economic and social
  spheres in many countries of the world.
• In Russia there is an intensive transformation
  process that take place in various areas (i.e.
  privatization of state property, changes in
  institutional structure of the economy).
• Russia is rapidly integrating in global
  economy.
• But there are some features of transition
  economy which are still remain in social
  security, pension system, insurance and finance.
  
• In these areas transformation processes and
  establishment of market economy institutions go
  very slow and with a sense of fear.

12
Strategy of introduction of the updated SNA-93 in
Russia

• Implementation of the updated SNA will be carried
  out on a parallel course with introduction in
  practice of those sections of the SNA 1993 which
  have not been implemented yet by ROSSTAT.
• Flexible approach for decision-making
• Methodological and organizational efforts in
  improving of source data system
• new-level of interagency cooperation

13
Analysis of provisions of the updated SNA

• demand on specific types of information from
  major users of data of the SNA and, above all,
  from the bodies of the general government
• relevance of specific provisions of the System to
  peculiarities in organization of the economy and
  the social sphere
• relative importance of individual provisions for
  raising reliability and analytical usefulness of
  indicators
• the need to improve informational base
• availability of resources
• level of interaction with other economic agencies

14
Priorities

• Evaluation of non-observed economy and in
  particular informal economy which plays an
  important role in Russia
• Considering expenses on purchasing of durable
  goods for military purposes as accumulation
• Treatment of of originals and copies of piece of
  work as economic assets
• Introduction of FISIM by users calculations
• Development of accounts by institutional and
  state sectors

15
Long-run prospects

• measuring traditional types of illegal activities
• studying of capital services concept
  (participation in international seminars,
  discussion on issues of its implementation).
• studying of macroeconomic productivity is very
  important for Russia. Preparation to it will be
  started in near future but its implementation
  will require a lot of time.
• modification of the formula of computation of
  output of non-market services produced by the
  government by introduction of imputed operating
  surplus on capital (difficult to achieve due to
  the lack of adequate data on capital of the
  government bodies ).

16

• the new formula of output of central banks as the
  sum of outputs of non-market and market
  establishments (departments) (difficult to
  implement because of the lack of data on bank
  departments costs)
• updated concept of output of insurance companies
  , based on summing up costs and normal profit,
  calculated on the basis of prognostic calculations

17
Practicalities

• Refining of theoretical concepts and
  definitions makes it possible to improve economic
  content of the major aggregates, but their
  implementation is not always easy to achieve due
  to problems with obtaining necessary information
  
• The following could help to implement the
  updated SNA
• materials containing practical recommendations on
  how to solve a certain problem
• exchange of experience

18

• Implementation of new recommendation will
  cause a lot of changes in national accounts data
  (GDP, GNP, Savings and so on)
• There will be changes in dynamics of
  indicators
• The updated SNA should be introduced not as soon
  on of the SNA section is applied but by a large
  blocks, steps in order to decrease the number of
  time-series reviews
• The starting point for Russia is the
  development of basic input-output tables for the
  year 2012. When developing these table we should
  consider all the changes that can take place by
  that time. After the development of IOT it is
  necessary to revise series of GDP and its main
  components.

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Thank you for attention!