Description of methods and sources for Albania - INSTAT

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IPA 2009 Multi-beneficiary StatisticalCooperation Programme19Table 3.12: Value added components in data sources and national accountsadjustments for government, 2006Value added components____________________________________________________________________1. Salary Bonuses and Other Staff Expenditures (article 600)2. Social Insurance and health contributions (article 601)Total value added (1 + 2)As well as in estimation of value added of government the calculated value of valueadded of Compulsory social and health securities (wages, salaries and socialinsurance) is added.3.3.3.2 Intermediate consumptionIntermediate consumption in the Government is the material amount and servicesmade to accomplish their duties. The intermediate consumption is made of the entireelements used to produce output, which are expenses to maintain the normal work.Intermediate consumption is the article 602 – “Goods and other services”. In themore detailed level of the article we can define the object of the purchase. All thesegoods and services represent the intermediate costs taken by the general governmentto produce the final output of the government. This entire group is treated asintermediate consumption.Although these data are available some improvement can be made. The code accounthas a good detailed level of the expenditure but it is needed to define our approach tothis data in a better way. It is pointed out that some articles in the account treated intothe intermediate consumption should be treated as value added. For example thedetailed level of the article 6029005 (Expenses for Honorarium) should beconsidered as value added and not as intermediate consumption. The main thing is todetermine which element of the account should be considered for intermediateconsumption and which for value added and this will be part of future improvements.46/236
IPA 2009 Multi-beneficiary StatisticalCooperation Programme20Table 3.13: Intermediate consumption components in data sources andnational accounts’ adjustments for government, 2006Intermediate consumption components____________________________________________________________________1. Goods and other services (article 602)Total intermediate consumption____________________________________________________________________As well as in estimation of intermediate consumption of government the valuecalculated of value added of compulsory social and health securities (wages, salariesand social insurance) is added.3.3.3.3 DepreciationDeprecation means the deprecation of tangible assets during one year. Thisestimation is done only at the end of the year. The process of collecting the data isnot available in a short term period. The data come from the annual accountingstatements (balance sheets) of the governmental institutions. The Ministry ofFinances makes additional estimation of the deprecation within the governmentinstitutions.In our process the valued added is adjusted by adding the value of the deprecation tothe actual values to give a total value of the value added.The estimation of deprecation for the government is defined by using the data of totaldepreciation as it is in financial statements (data from Ministry of Finances). Todefine a value of depreciation for each branch in public sector actual value of SalaryBonuses and Other Staff Expenditures are firstly divided by each public sectorcompared with the total Salary Bonuses and Other Staff Expenditures of the publicsector. Respective ratio is used to divide the value of deprecation into all sectorsassuming that the level of deprecation is the same as the level of wages and salariesmade by an institution during period (the sector with the higher wages and salarieshas the higher depreciation),. The estimation for the deprecation, in the cases ofmissing data (2007) is defined by using the previous year value of the deprecationmultiplied by the respective growth rate of deprecation during the last year(DeprecationT-1/ Deprecation T-2 ).The GVA of government has included the depreciation as it is in the financialstatements and not the consumption of fixed capital as required by ESA95, for theabsence of other data that are part of consumption of fixed capital (foreseeableobsolescence).47/236
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Description of methods and sources for Albania - INSTAT

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