GDP by Income approach - Total of economy (Quarterly data)

National Statistical Institute

Non-financial National and Regional Accounts

Boryana Manolova

Head of department

2 P. Volov Str., Sofia 1038

[email protected]

+359 2 9857 623

National accounts for Bulgaria are compiled according to the main methodological recommendations of the documents "System of National Accounts, 2008" (SNA2008), an issue of EUROSTAT, IMF, OECD, UN and the World Bank, and "European System of Accounts, 2010" (ESA 2010), an issue of EUROSTAT. Main macroeconomic indicator of the system of national accounts is the gross domestic product (GDP).

The method of income is an integral part of the accounts for the primary distribution of income. Approach reflects income as an element of the value added created in the production process. Balance sheet item of income approach is the gross operating surplus / mixed income.

Classification of Economic Activities (CEA-2008, for international use NACE.BG-2008)

Total economy

The Generation of Income account is compiled in parallel with the Production account and shows the activity, economic and institutional sector in which the primary incomes originate. Gross value added is the resource of this account.

Scheme for the calculation of GDP by the value method is as follows:

Gross domestic product (market prices ) =

+ Compensation of employees ( labour costs and social security )

+ Net other taxes on production and imports (taxes - subsidies on production and imports )

+ Gross operating surplus / mixed income

+ Adjustments

Components of the value method are grouped by economic sector,

sectors and can only be assessed at current prices as follows:

Compensation of employees comprising two main components:

• Salaries and wages;
• Social security contributions paid by the employer.

Wages include all charges by the employer in cash and in kind, and all payments under employment legislation by reason of the employees work in the period before the payments made for income tax.

Social security contributions paid by the employer are payments for social security in order to secure funds for the payment of pensions, social benefits. These payments include social security contributions (actual and imputed), the contributions payable by the employer including health insurance contributions. Their size is defined as a percentage of the gross wage.

Other net taxes (taxes less subsidies) on production and imports are included as a component of value added by industry and are related to the production as a whole, not compensated by the employer payments to the state budget, less subsidies on production, provide business units.

Gross operating surplus / mixed income is the balancing item in the value method. It is a measure of the production activities of the business units. In unincorporated enterprises owned by households, this balancing item is called mixed income and contains as an element profits and remuneration for work by the owner himself or members of his family. Position can be represented in gross or net terms regarding the consumption of fixed capital (depreciation).

Institutional unit under ESA2010 - enterprise, household, public institution

Economic territory of the country

Bulgaria

from 1995 (Infostat)

Not applicable.

Information sources for development are:

• Quarterly report;
• Statistical Annexes;
• Administrative data and balance sheet developments:

- Consolidated reports on implementation of the state budget;

- Customs information;

- Tax Information;

- Balance of Payments.

Quarterly

Quarterly data

Implementation of validated procedures for assessing data quality.

Implementation of validated procedures for assessing the quality of data and the development of estimation of the completeness of the data.

· European Statistics Code of Practice;

· Common framework for quality management in the National Statistical System.

Questionnaire on the implementation of the principles of the European Statistics Code of Practice.

National accounts data are subject to continuous routine revisions as new input data becomes available. This will typically also entail revisions of the national accounts aggregates, which are derived from these data. In BG national accounts two types of revisions are: regular –  preliminary, final data; and major - based on implementation of new methodology or GNI reservations.

National accounts data are subject to continuous routine revisions as new input data becomes available. This will typically also entail revisions of the national accounts aggregates, which are derived from these data. In BG national accounts two types of revisions are: regular –  preliminary, final data; and main - based on implementation of new methodology or GNI reservations.

Current quarterly estimates of GDP - T +65 days after the reporting period.

The data transmitted to Eurostat are in compliance with National Accounts Data Distribution Program Annex B and respective derogations for the country.

The comparability is insured by the application of common definitions  of ESA 2010.

By using a common framework, the European System of Accounts  ESA 2010, data can be comparable over time.

In certain cases, data from other domains of economic statistics, i.e. balance of payments statistics, business
statistics, household budget statistics or external trade statistics can be used for cross-checking purposes. These economic statistics are also available from the appropriate domains on NSI's website.

Quarterly data for all sub domains of national accounts should be coherent.

Not applicable.

Data are available to all users of the NSI website under the heading Macroeconomic statistics - Gross Domestic Product - Quarterly data - GDP by Income approach - Total of economy: https://www.nsi.bg/en/node/5507

Not applicable.

European System of Accounts (2010) (Eurostat).

· Law on Statistics;

· Regulation (EC) No 223/2009 on European statistics (recital 24 and Article 20(4)) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society.