CHAPTER SIXTEEN

NATIONAL ACCOUNTS

This chapter includes the final results of economic indicators estimates in the S.A .R, namely production consumption and accumulation for the years 1963 - 1970 - 2002

The estimates of national accounts in S.A.R .passed through many stages , various local and international authorities had estimated the national income for many years, in different methods before the establishment of the CBS in 1968 .

In 1970 , the CBS reviewed the estimates for the years 1953 , 1969 According to basis of UN national accounts system for 1953 , at 1963 prices .

In 1980 , the UN new system for National Accounts , for 1968 was used in preparing an estimating series for 1963 - 1979 indicators at both current & 1975 prices . This series is kept on for the following years .

In the light of taking 2000 as a new base year in the nine the five years plan , the estimates for the years 1963 , 1970 , 2002 were reprised .

For estimating in come series for 1963 - 2002 the International Standard Industrial Classifications ( ISIC ) of all Economic Activities was adopted .Revision ( 3 ) issued by United Nations in 1991 which divides the economic activities as the following :

1 - Industries it includes :

- Agriculture , hunting , forestry and fishing

- Mining and quarrying ,Manufacturing Electricity and water .

- Construction .

- Wholesale and retail trade, restaurants and hotels.

-Transport , communication and storage.

-Finance , insurance , real estate and Business services .

- Community and personal services .

2 - Government services .

3 - Private ,Non profit institutions .

4 - Households services .

We state below the concepts & definitions of each indicator related to these accounts .

A) Gross output : The value of all commodities and services produced during the period of account , including work in progress and products for use on own account , on the basis of producers value , that is the market value at the producer . ( farm price for agricultural production, and factory prices for the industrial production ) .

B) Intermediate Consumption : The value of non durable commodities and services used in the production including repair and maintenance of capital assets .

C )Gross Domestic product or gross value added: It is two kinds : Gross domestic product at market price which represents gross domestic product at producer 's price less the value of intermediate consumption and gross domestic product at factor costs which represents value of gross product at market price less net indirect taxes .

D) Capital Depreciation: It is a part of fixed assets value used up during the period of account .

E) Net domestic product or Net value added: Net domestic product at market price represents gross domestic product at market price less fixed capital depreciation . Net product at factor cost represents net domestic pro -duct less net indirect taxes .

H) Indirect Taxes: Taxes imposed on producers in respect of production, distribution , purchase or use of goods and services which is added to production costs . It includes Duties on imports ,exports production sales and other similar duties .

The method of industrial source is used in estimating value of production and product for certain sectors while expenditure method is used for the others . Stated below the main statistical sources used in preparing the estimates :

A - Agricultural Sector :

-Statistical Abstract of the Ministry of agriculture which includes data on animal and plant production .

B - Industrial Sector :

-Annual reports of public sector institution which include the major part of industrial production in the "Field of mining and quarrying manufacturing water &electricity".

-Reports of General Establishment for Tobacco

-Reports of General Establishment for cotton Ginning and Marketing .

C - Construction Sector :

- Construction sample survey in both private and cooperative sector for estimating production value in construction sector .

- Annual statements for development expenditure in the country .

D -Retail and wholesale trade , restaurants and hotels :

-Annual reports of interior trade establishments .

-Foreign Trade Statistics .

-Annual Trade issued by Ministry of supply and Ministry of tourism .

E -Transport , communication & storage sector :

-Vehicles sample survey .

-Reports of Ministry of Transport .

F -Finance, insurance , Real Estates and business services :

-Final Accounts for public sector`s establishments and firms .

-Questionnaires relating to income calculation in bank and insurance sectors .

G -Government Services :

- State Actual Budgets and Municipalities .

A set of tables is prepared (including percentages ),reflecting sectors structure in respect of gross income account a simplified method representing the tables and facilitating comparisons among through following the development occurring from year to year .