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JOINTLY ORGANISED BY UNECE, EFTA, AND EUROSTAT,IN COLLABORATION WITH IMF AND TURKSTAT

 20-22 NOVEMBER 2013, ISTANBUL, TURKEY

COUNTRY PRESENTATION: ALBANIA

Workshop on 2008 SNA and GFSM for EECCA and SEE Countries

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Institutional Arrangements

• GFS in Albania is responsibility of MOF based on Budget Management System in the Republic of Albania (Law Nr.9936,dt 26.06.2008) and the Guidelines on State Budget Performance clearly mandate the responsibility of the MoF for Compiling and disseminating GFS.

• Government Sectoral Accounts will be compiled by INSTAT based on the Official Statistical Program 2012-2016.

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Government finance statistics (Achievements)

• Dissemination of the quarterly general government operations data.

• Accounts are compiled on a modified accrual basis• New government accounting system, Albanian Ministry of

Finance Treasury System (AMoFTS) (2008). It has become fully operational since September 2010.

• GFSM 2001 functional and economic classifications are being applied.

• The MoF website was upgraded to improve accessibility and serviceability with longer time series

• Accrual basis for recording data on government debt.

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Current compilation procedure

• Actual Publications– GDP By Production Approach

• Government Output/IC/Value Added annually and quarterly• Total Taxes and Subsidies on Product and Production annually and quarterly

– GDP By Expenditure Approach• Government Individual and Collective consumption annually and quarterly

– Lists of Taxes on product and on production– List of Subsidies on product and on production– Non-market Output of market Output

• Future Projects– Transmission Program of ESA2010– Government full set of non-financial accounts

• Classifications– Identification of Institutional Sector Classification

• Central government (S.1311); • Local government (S.1313);• Social security funds (S.1314).

– Other classifications Used• NACE Rev 1.1/NACE Rev 2.0• COFOG

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Current compilation procedureproducts: Government sector

• Creating the Nominal List of Institutions part of the General Government Sector and Subsectors.(Approximately 1150 for S.1311, 450 for S.1313 and 74 for S.1314 )

• Bridge Table between the original data of MoF and the ESA classifications.

• Integration of the non-financial Account of General Government and final Consolidation of the Institutional sectors.

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Current compilation procedureproducts: Bridge Tables/Raw Data

Raw Data• Gov/Ministry• Institution• Program• Economic Account• Economic value

Institution List• Institutions• NACE activity• Institutional Sector• Region of activity• NIPT• Inst_Group

Cofog• Cofog code (5 digit)• NACE rev 1.1/Rev 2.0• Type of Expenditure

Reference_Institutions

Institution_Code

Institution_Name

Nace_Rev_1.1

Nace_Rev_2.0

Region_Code

Region_Name

Institutional_Sector

Inst_Group

NIPT

Reference_COFOG

Cofog_Code_AL

Cofog_Division

Type of Expenditure

Nace Rev 1.1

Nace Rev 2.0

Data_Min_FinGov/MinistryInstitution

TDO RegionProgramEc_AccountEconomic Value

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Current compilation procedureproducts: Bridge Tables

• Economical Accounts• Economical regulations• Esa 95/2010 accounts • Type of accounts

(To identify the differences between Resources and Uses for the same ESA codes For Example: D29 Taxes on Production are mainly a resource of the Government but they might be paid by the government so they are uses.)

Reference_Economical Accounts

Economic code 7 Digit

Economic description

ESA 95/2010 accounts

Type of accounts

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Current compilation procedureproducts: Integration of Data

Reference_InstitutionsInstitution_CodeInstitution_NameNace_Rev_1.1 Raw Data Reference_Economical AccountsNace_Rev_2.0 Ministry Economic codeRegion_Code Institution_Code Economic descriptionRegion_Name Cofog_Title ESA 95 accountsInstitutional_Sector Economical Acount Type of accountsInst_Group MounthNIPT Year

Value

Reference_COFOGCofog_Code_ALCofog_DivisionType of ExpenditureNace Rev 1.1Nace Rev 2.0

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Government Institutional Sector

Current compilation procedureproducts: Data Verification

• INSTAT is aware of the need to make certain verifications / edits of data, once compilation is completed, to identify inconsistencies

– Between statistical tables (stocks /flows, e.g., net change in the stock of cash consistent with currency and deposits)

– With GFS methodology (e.g., interest expense should be the same or less then the one reported in public debt transactions )

– With historical trends (size of components of revenue and expense as percentages of totals; consistency between change in interest expense as percentage of stocks of public debt by instrument)

– Need to revise data if anomalies are found and provide reasons for apparent inconsistencies if data are correct

– Need sound inter-institutional arrangements to resolve inconsistencies in data before disseminating both data sets

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Need to analyze data for general government

• institutional coverage and sectorization of general government (differences appear in the classification government units and also in the classification of transactions, e.g. in financial leasing , wages in kind, transfers of assets, scope of revenues to be included into the State Budget)

• coverage of latest available data (data coverage, e.g., transactions in assets & liabilities and level of their detail, outlays by functions of government (expense plus the net acquisition of nonfinancial assets)

• detailed and updated information on data recording and compilation practices (accounting practices, cash or other than cash basis, valuation of assets and liabilities)

• other discrepancies from SNA concept• data on the state assets and liabilities, including state debt; (Patrimonial

State Balance , Balance sheets etc)• List of government units that are not included in the Budget Reporting• financial statement and balance sheets of extra budgetary funds

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Legal basis

The legal mechanism should be put in place that would ensure sound compilation program for the EDP in INSTAT, which would include:

• The “Draft Joint Directive of the Council of Ministers and Bank of Albania on the data transmission program for compiling national accounts of Albania” should be finalized as soon as possible.

• regulation for the efficient and timely flow of source data from MOF to INSTAT at the required level of detail, terms, and format adherent to international standards;

• legally backed right of INSTAT to request additional data from the government institutions and from the Central Bank on Government accounts at the appropriate level of detail;

• arrangements that would give INSTAT the rights to request changes in MOF’s source data compilation program and introduce adjustments to data sources from the revenue collecting agencies, budget spending units, extra-budgetary funds, and local authorities to implement international standards and consistency of methods and results.

• Improving the existing Permanent inter-agency expert group between INSTAT, MoF and BoA to ensure consistency between EDP, GFS, monetary and external sector statistics (e.g., between net credit to government in the MFS and financing from the banking sector in the GFS).

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INSTAT roadmap

• Need to decide on additional statistical questionnaires and administrative data to be collected by INSTAT

• Need to for the detailed information from extra budgetary funds

• Need to receive updated information on changes in accounting system for government units

• Need to improve procedure of consolidating data from various sources

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For further contacts e-mail:gmano@instat.gov.al; ealiko@instat.gov.al;akasapi@minfin.gov.al

Thank you for attention