The main orientations, plans and problems when implementing the

2008 SNA in Kyrgyzstan

National Statistical Committee Republic of Kyrgyzstan

D. Baijumanov - First Deputy Chairman

Contents

1. Main differences between the 2008 SNA and the 1993 SNA

2. Steps for implementing the 2008 SNA

3. SNA Implementation - challenges and barriers

Comparison with the 1993 System of National Accounts

A. Statistical units activities and the new changes when classifying the institutional sector

1 The production unit, which has mainly a supporting role, should be treated, in some cases, as a separate body

2 Subsidiary companies don’t have the status of an institutional unit, unless they are residents of an another country than the country of their parent corporation

3 The Branch of a non-resident unit is considered as a unit

4 More clearance was brought on the residential status of the multi-territorial enterprises

5 Treatment of special-purpose entities

Comparison with the 1993 System of National Accounts

6 Holding companies are considered as a part of the financial corporations sector

7 The company's headquarters must belong to the same institutional sector as most of its subsidiary companies

8 A sub-sector for non-profit organizations was introduced

9 The definition of financial services was extended

10 The financial corporations sector was divided in sub-sectors in order to reflect the new developments in the financial services, markets and instruments

- Усовершенствование таблиц «Затраты-Выпуск» (техническая помощь ЦСБ Финляндии) (2010)

- Улучшение методологии и методов оценки основных фондов и потребления основного капитала (техническая помощь ЦСБ Финляндии) (2010-2011)

- Разработка методологии построения и экспериментальный расчет финансового счета (техническая помощь ЦСБ Финляндии) (2010-2012)

- Разработка методологии составления и экспериментальный расчет счетов других изменений в активах (2013)

- Разработка методологии составления и

Comparison with the 1993 System of National Accounts

B. More clarity on activities, including the limits of the production area

11 Research activities are not considered as auxillary activities

12 Refined method of calculating financial intermediation services indirectly measured (FISIM)

13 The production of the central bank was clarified

14 Insurances accounting (except for life insurance) was improved Reinsurance is treated similarly to direct insurance

15 The assessment method of production of households and corporations for own end-use should include the return on capital

ЭТАПЫ ВНЕДРЕНИЯ СНС 2008Comparison with the 1993 System of National Accounts

D. More clarity on assets and fixed capital accumulation and consumption

16 The concept of the changing ownership economic law was introduced

17 Assets limits were extended after introducing the assets of the R&D activities

18 A revised classification of assets was introduced

19 Assets limits were extended after introducing expenditures on armaments when calculating the gross capital of the government

20 “Software computing" assets were modified in order to encompass databases

21 Originals and copies are considered as separate products

Comparison with the 1993 System of National Accounts

22 The concept of financial services was introduced

23 The treating of the delays in property right transfer was reviewed

24 Prospecting and evaluating of mineral resources

25 Land improvements

26 Goodwill and marketing assets

27 Water resources are treated as assets in some cases

28 The assessment of fixed capital consumption should be done following the average prices of the period which is annexed on the index of the consistent quality asset

29 The identification of the cultivated biological resources is made on the symmetrical definition of what is a cultivated resource

30 The category of “Intellectual property products“ was introduced

31 The notion of natural resources renting was introduced

32 Accounting on the assets’ volume changing was updated

Торговля; гостиницы и рестораны

Данные Налоговой инспекции о выданных патентах

Данные о средних показателей по отрасли, полученных путем единовременных наблюдений и путем дополнительных опросов и проверок

Данные систематических выборочных обследований всех типов рынков

Comparison with the 1993 System of National Accounts

E. Improvements of financial tools and assets interpretation and definition

33 The agreement on repurchasing stocks, as well as loans and deposits was clarified

34 The possibility for workers to buy shares is described

35 The processing of non-performing loans is detailed

36 The interpretation of the guarantee is detailed

37 The processing of indexed stocks is detailed

38 The processing of debt instruments indexed on the exchange rate is reviewed

39 Flexible evaluation of unlisted shares

40 Unallocated gold accounts are considered as financial assets and liabilities

Транспорт

Данные Государственной транспортной инспекции о количестве технически исправных грузовых и легковых автомобилей

Сведения о среднем пробеге, средней загрузке, средних доходах от перевозок грузов и пассажиров

Данные специализированных обследований на грузовом и пассажирском автотранспорте

Comparison with the 1993 System of National Accounts

41 The definitions of monetary gold and gold bars that are used for official reserves were revised

42 The commitment to the Special Drawing Right was recognized

43 The distinction between deposits and loans was implemented

44 Payment services for the loans in stocks and in gold

45 Classification of financial assets

46 The difference between financial leasing and operating rent on the basis of economic ownership

47 The recommendations on pension rights benefits were reviewed

Финансовая деятельность

Данные Национального банка о количестве обменных бюро, имеющих лицензию на ведение обменных операций

Данные о доходах и расходах по юридическим лицам, численности занятых в них

Comparison with the 1993 System of National Accounts

F. Refinement of activities related to the governmental and the public sector

48 The boundary between the private, public and governmental sector was clarified

49 The status of the agency specialized on the restructuration was clarified

50 The processing of the licenses issued by the State was reviewed

51 Public corporations exceptional payments should be considered as withdrawals from the equity

52 Government’s exceptional payments to quasi-public corporations should be treated as capital transfers

Comparison with the 1993 System of National Accounts

54 Accrual taxes accounting

55 Tax exemptions

56 The processing of property right on fixed assets as a result of public-private partnership was clarified

57 Taxes on holding gains are still processed as current taxes on income and property

Comparison with the 1993 System of National Accounts

G. Harmonizing concepts and classifications of the SNA and of the Balance of Payments Management (6th Edition)

58 Center of the predominant economic interest as main determinant of the residence of the unit

59 Change individuals residence

60 The goods sent abroad for processing are counted on the basis of the property right change

61 Goods resale abroad

The questions on the definitions and concepts when studying the 2008 SNA and achieving settling the 1993 SNA indicators are reflected in the “Streamlining and developing program of Kyrgyz republic on state statistics for 2010- 2014.", which was approved by Government’s Decision Nr. 199, on 30 March 2010.

Steps of the implementation of the 2008 SNA

The Programme reflects the following points:

-Implementing in practice the definitions and the concepts of the 2008 SNA by the producers of the National Statistics (2010-2014)-Developing the methodology on determining the holding gains and reserves change (2010)-Improving the methodology for assessing the non-observed economy (2010-2014)-Quarterly produced national accounts (Technical assistance under the TACIS program, Statistics 11) (2010-2011))

- Improvement of the tables, "Input-Output" (Technical Assistance Statistics

Finland) (2010)

- Improvement of the methodology and methods of evaluation of assets and consumption of fixed capital (Technical Assistance Statistics Finland) (2010-2011)

- Development of methodology and experimental calculation of the financial account (Technical Assistance Statistics Finland) (2010-2012)

- Development of methodology for the calculation and experimental accounts of other changes in assets (2013)

- Development of methodology and experimental calculation of the balance sheets (2014)

Programs, to be implemented in 2010 to 2011 incorporated in 2012 – in progress.

NSC specialists took part in seminars on the implementation of SNA 2008, under the auspices of the UNECE, UNSD, CIS Statistical Committee in 2011 and 2012. Based on available resources, and the intentions of technical assistance from international organizations, NSC has prepared a preliminary draft plan for implementing the 2008 SNA, reflecting milestones and checkpoints. It is scheduled up to 2020. In addition, individual items of the draft Plan are included in the Statistical Master Plan, prepared on the basis of the Global Assessment of the statistical system, and suggesting technical assistance from the World Bank.

Stages of implementation of 2008 SNASTEP 1 - Overview of national strategic documents to include

plans to implement the 2008 SNA

1 Identification of the major unsolved problems of the 1993 SNA.

2012

2 Introduction to major changes in the SNA 2008 as compared to the 1993 SNA and to assess their importance for the country.

2012-2013

3 Identification of the key institutions involved in the collection and production data for the SNA and the conclusion of agreements on cooperation in implementing the 2008 SNA

2012-2013

4 Prioritization of the 2008 SNA, based on the needs of users and resources

constantly

5 Enabling works on implementation of 2008 SNA in the strategic plan for the development of statistics

2012-2013

6 The adoption of a detailed plan to implement the 2008 SNA for short-, medium-, and / or long-term

2012

Stages of implementation of 2008 SNA

STEP 2 - Actions necessary to implement the 2008 SNA

7 The adoption of new classifications and other improvements in the business register and business statistics

2012-2014

8 Changes in the surveys and questionnaires in business statistics for data collection

2012-2020 (constantly)

9 Adaptation of administrative data sources to the new requirements

2012-2015

10 IT and other changes 2013-2020(constantly)

Stages of implementation of 2008 SNASTEP 3 - Development of national accounts and the transition to

2008 SNA

Checkpoint 1. Key figures of GDP

Unresolved issues from the 1993 SNA

11 Financial account 2012-2014

12 Scores of other changes in assets 2013-2015

13 Balance sheet accounts 2014-2016

14 Evaluation of financial assets and other non-produced assets 2015-2016

15 Evaluation and adjustment for change in the value of household assets in pension funds

2014-2016

16 Assessing the size of the shadow and informal activities 2014-2016

17 Assessment of the volume of illegal activities 2015-2016

18 Improved methods for evaluating fixed capital formation and consumption of fixed capital using the perpetual inventory method

2013-2015

19 Productivity in the broad sense 2015-2016

Stages of implementation of 2008 SNA

New issues from the 2008 SNA

20 Calculations of financial intermediation services indirectly measured (distribution by institutional sectors of the economy, the production and consumption)

2013-2015

21 Release of central bank 2013-2015

22 The cost of weapons systems 2013-2015

23 Research and development 2013-2015

24 Revise the methodological position of tourism statistics in Kyrgyzstan based on MRST 2008

2015-1017

Stages of implementation of 2008 SNACheckpoint 2. GNI and other primary indicators

25 For the rest of the world - the external account of primary income and current transfers, capital account and financial account (BPM 6)

2012-2015

Checkpoint 3. The accounts by institutional sector

26 For all institutional sectors - Production account 2014-2020

27 For state sector - Generation of income account, allocation of primary income, secondary distribution of income Use of disposable income, Capital and Financial Account

2014-2020

28 For all institutional sectors - Generation of income account, allocation of primary income, secondary distribution of income Use of disposable income and capital

2014-2020

29 For all institutional sectors - Financial account 2014-2020

30 For all institutional sectors - Other changes in assets, balance sheet

2014-2020

Implementation of the SNA - Challenges and barriers

- Not enough staff and training

- Lack of funding

- Lack of modern management principles

- Weak base of ICT

- Basic economic and macro statistics data do

not match quality and strategy

- Improve data collection and processing of

short-term indicators

Thank you for your attention!