An Introduction to System of National Accounts
– Integrated Transaction Accounts
Lesson: VI Part 1
Distribution and Use of Income Accounts
– Main entries and Data Needs
Second Intermediate-Level e-Learning Course on
2008 System of National Accounts
October - December 2013
Contents
• Primary Income and its Distribution
– Primary income and its distribution
– Secondary distribution and redistribution of
income
– Social transfers in kind
• Rerouting of insurance related transactions
• Use of Income
Primary Income
and its Distribution
Primary Income and its Distribution
Distribution of Primary Income
GVA
Institutional Units participating in production
donations
gifts
remittances
Other Institutional Units
Primary Income and its Distribution
Social Transfer in Kind
Also called tertiary distribution of income :
Social Transfers
in Kind
Non-market production
of services by government and
NPISHs for individual
consumption
Purchase & delivery
of goods & services by
government and NPISHs to
households
Primary Income and its Distribution
Incomes in Main Accounts
Distribution of income as reflected in the main accounts
of the system is as follows
Income
generated
from domestic
production
GVA / GDP
Allocation
of primary
income
Balance of
primary
Income
/ GNI
Secondary
distribution
of income
Disposable
income
/ GNDI
Primary Income and its Distribution
Distribution of Income in Kind
Social transfers in kind are reflected in a separate
account of the system
Disposable
income
/ GNDI
Social transfers in kind
Adjusted
Disposable
income
/ adjusted
GNDI
Insurance schemes
Insurance Scheme - Rerouting
Non-Life Insurance:
HFCE /
IC
Use of output (implicit)
Output Investment of
reserves
Service charges (implicit)
Policy
Holders
Premiums
Premium
supplements
Benefits
Insurance
Corporations
Financial
Market
Investment
Income
Insurance schemes
Social Securities – transactions involved
Employers
Contributions
CE
Households:
• Employees
• Self-employeds
• non-employeds
Contributions
Contributions
Benefits
Social
Security:
General
Government
Insurance schemes
Employment-related Funded Social Insurance
Employer
CE
contribution
contribution
Output
HFCE
Service charges
Beneficiary
households
contribution
contribution
supplements
Benefits
Insurance
Corporations
Investment of
reserves
Financial
Market
Investment
Income
Use of Income
Use of Income
Use of Disposable Income
Disposable income of institutional units gets distributed
as follows by uses:
Disposable income
/ GNDI
Use of Income
Use of Income in Accounts
Distribution of income as reflected in the use of disposable income
account and use of adjusted disposable income accounts as follows:
Disposable
income
/ GNDI
Adjusted
Disposable
income
/ GNDI
Final consumption
Savings
Change in pension
entitlements
Actual final consumption
Savings
Change in pension
entitlements
End of Part-1
Lesson VI
An Introduction to System of National Accounts
– Integrated Transaction Accounts
Lesson: VI Part 2
Distribution and Use of Income Accounts
– Main entries and Data Needs
Second Intermediate-Level e-Learning Course on
2008 System of National Accounts
October - December 2013
Contents
• Distribution of Income Accounts by institutional
sectors
• Use of Income by institutional sectors
Distribution of Income Accounts
by institutional sectors
Distribution of Income Account
Underlying Identity
– Allocation of Primary income Account
Balance of primary income /
GNI ≡ (CE + OS & MI) generated in domestic enterprises +
production (t-s) + (t-s) on imports
+ CE from RoW (net) + PI from RoW (net)
OR
Balance of primary income /
GNI ≡ GDP + (net) compensation of employees from RoW
+ Property income receivable from non-residents
- Property income payable to non-residents
Distribution of Income Account
Underlying Identity
– Secondary Distribution of Income Account
GNDI ≡ GNI + (net) current transfers from RoW
+ (net) taxes on income & wealth from RoW
Allocation of Primary Income Account
Accounting Structure
Uses
Resources
Allocation of Primary Income Account
B.2g & B.3g OS+MI (gross)
Property income payable
CE (net of payable to RoW)
Property income receivable
Production & import taxes
Subsidies ( - )
B.4g Balance of primary income / GNI
CFC
B.4n Balance of primary income / NNI
Allocation of Primary Income Account
Accounting Structure (Contd.)
Uses
Resources
Secondary Distribution of Income Account
Balance of primary incomes (GNI)
Current taxes on income &
wealth, etc.
Current taxes on income & wealth, etc.
Net Social contributions
Net Social contributions
Social benefits (excl. in kind)
Social benefits (excl. in kind)
Other current transfers
Other current transfers
B.6g GNDI
CFC
B.6n NNDI
Allocation of Primary Income Account
Household Sector – try yourself [using data in Box 6.4]
Uses
Resources
Allocation of Primary Income Account
B.2g OS / B.3g MI (gross)
Compensation of employees
??
?2600
1010
(net of payable to RoW)
? 400
Property income payable
Property income receivable
Production & import Taxes
Subsidies (-)
3434
?
B.4g Balance of PI / GNI
? 224
Allocation of Primary Income Account
Household Sector – try yourself [using data in Box 6.4]
Uses
Resources
Secondary Distribution of Income Account
Balance of primary incomes (GNI)
?
250
?170
?3164
Current taxes on income &
wealth, etc.
Current taxes on income & wealth, etc.
Net Social contributions
Net Social contributions
Social benefits (excl. in kind)
Social benefits (excl. in kind)
Other current transfers
Other current transfers
B.6g GNDI
?3434
?150
Allocation of Primary Income Account
Government – try yourself [using data in Box 6.4]
Uses
Resources
Allocation of Primary Income Account
B.2g OS / B.3g MI (gross)
? ?35
Compensation of employees
(net of payable to RoW)
?
60
Property income payable
Property income receivable
?
Production & import Taxes
? 500
Subsidies (-)
? 495
B.4g Balance of PI / GNI
20
Allocation of Primary Income Account
Government– try yourself [using data in Box 6.4]
Uses
Resources
Secondary Distribution of Income Account
Balance of primary incomes (GNI)
Current taxes on income &
wealth, etc.
Current taxes on income & wealth, etc.
Net Social contributions
Net Social contributions
? 50
Social benefits (excl. in kind)
Social benefits (excl. in kind)
? 25
Other current transfers
Other current transfers
?2435
B.6g GNDI
? 495
2000
?
?150
Allocation of Primary Income Account
Commercial Bank – try yourself [using data in Box 6.4]
Uses
Resources
Allocation of Primary Income Account
B.2g OS / B.3g MI (gross)
??430
Compensation of employees
(net of payable to RoW)
?1620
Property income payable
Property income receivable
Production & import Taxes
Subsidies (-)
? 830
B.4g Balance of PI / GNI
?2020
Allocation of Primary Income Account
Commercial Bank – try yourself [using data in Box 6.4]
Uses
Resources
Secondary Distribution of Income Account
Balance of primary incomes (GNI)
?
?
30
0
?800
Current taxes on income &
wealth, etc.
Current taxes on income & wealth, etc.
Net Social contributions
Net Social contributions
Social benefits (excl. in kind)
Social benefits (excl. in kind)
Other current transfers
Other current transfers
B.6g GNDI
? 830
?
0
Use of Disposable Income Accounts
by institutional sectors
Use of Income Account
Household Sector – try yourself [using data in Box 6.4]
Uses
Resources
Use of Disposable Income
B.6g GNDI
?2337
FCE
Adjustments for changes in pension
entitlements
?827
B.8g Gross savings
Adjustments for changes in pension
entitlements
3164
Use of Income Account
Government – try yourself [using data in Box 6.4]
Uses
Resources
Use of Disposable Income
B.6g GNDI
? 625
FCE
Adjustments for changes in pension
entitlements
?1810
B.8g Gross savings
Adjustments for changes in pension
entitlements
2435
End of
Lesson VI
Thanks