COMPILATION OF GDP BY INCOME APPROACH

1
COMPILATION OF GDP BY INCOME APPROACH ACCOUNTS
FOR HOUSEHOLD SECTOR Department of Statistics,
Malaysia March 2012
2
CONTENTS

• Introduction
• GDP Income Approach By Institutional Sector
• Data sources
• Methodology
• Institutional sectors in Malaysia
• Sequence of the accounts

3
INTRODUCTION

• GDP by Income approach
• By Institutional sector and kind of economic
  activity
• By Institutional Sector
• Can be seen through the compilation of
  Distribution and use of Income Accounts and
  Capital Accounts.
• Based on Sequence of Account in current prices at
  annual basis
• By Kind of economic activity
• To complement the production and expenditure
  approach
• To see the distribution of value added by various
  economic activity
• At annual basis in current prices

4
GDP INCOME APPROACH BY INSTITUTIONAL SECTOR
Statistics compiled by Central Bank on CB, FC,
MB, leasing factoring
Annual surveys by DOSM eg. EC
BOP statistics from DOSM
DATA SOURCES
Annual reports from govt. agencies
Annual reports from individual companies
Insurance reports by Central Bank
5
METHODOLOGY

• The compilation is based on the concepts and
  methodology outlined in the United Nations
  publication entitled System of National Accounts
  1993 (SNA 1993).
• compilation presents the sequence of accounts
  from production account to capital account.
• These accounts show how
• ?production gives rise to income
• ?income is distributed redistributed
• ?income is used for consumption or
• saved
• ?saving is translated into fixed capital
  
• formation and net borrowing or
  lending

6
INSTITUTIONAL SECTORS IN MALAYSIA
7
SEQUENCE OF THE ACCOUNTS
Production account
Generation of income account
Allocation of primary income account
Secondary distribution of income account
Redistribution income in kind account
Use of disposable income account
Use of adjusted disposable income account
Capital account
8
COMPILATION FRAMEWORK
  ROW Total Economy NFC NFC FC FC GOV GOV GOV Household NPISH
  ROW Total Economy Pub Pri Pub Pri Fed State Local Household NPISH
Production Account                    
Primary Distribution of Income Account                    
Secondary Distribution of Income Account                    
Use of Income Account                    
Capital Account                    
9
CAPITAL ACCOUNT

• Capital account shows saving as a source of
  funding for capital formation
• 4 categories of changes in assets are
  distinguished in the capital account
• - gross fixed capital formation
• - changes in inventories
• - acquisition less disposal of valuables
• - acquisition less disposal of non-produced
• non- financial assets

10
PRODUCTION ACCOUNT

• first account in the sequence of accounts
• records the activity of producing goods and
  services
• calculates gross value added by subtracting
  intermediate consumption measured at purchasers
  prices from output measured at basic prices

11
PRIMARY DISTRIBUTION OF INCOME ACCOUNT

• Consists of two consecutive accounts
• - generation of income account
• - allocation of primary income account
• Compensation of employees includes the
  remuneration, in cash or in kind, payable by an
  enterprise to an employee in return for work done
  during the accounting period

12
SECONDARY DISTRIBUTION OF INCOME ACCOUNT

• Consists of two consecutive accounts
• - secondary distribution of income account
• - redistribution of income in kind account
• 3 main kinds of current transfers are
• - current taxes on income, wealth, etc
• - social contributions and benefits
• - other current transfers

13
USE OF INCOME ACCOUNT

• There two version of the use of income accounts
• - use of disposable income account
• - use of adjusted disposable income account
• Transactions on final consumption of goods and
  services for which a sector is the ultimate
  bearer of the expense even though it is not the
  sector to which the goods and services are
  delivered. 3 types of final consumption
  expenditure
• - household final consumption expenditure
• - final consumption expenditure of NPISHs
  
• - government final consumption expenditure

14
Thank you