Agenda item 7b Implementation of the Action Plan for Improvement of National Accounts Statistics in Azerbaijan N. Suleymanov State Statistical Committee of the Republic of Azerbaijan Workshop on the Implementation of the 2008 SNA Kiev, 29 November - 2 December 2011

In April 2009 The State Statistical Committee (SSC) of the Republic of Azerbaijan developed and approved «Action Plan for the Improvement of National Accounts Statistics in 2009 - 2011»

Main objectives: Addressing the «gaps» in the implementation of the 1993 SNA; Improvement of the business statistics and price statistics data, used for the compilation of national accounts; Setting the methodological and informational basis for the implementation of the recommendations of the 2008 SNA

Main areas of work (1) Improvement of the methods for measuring the output of the informal sector and of illegal activities (2010-2011); Implementation of the revised classification of economic activities (NACE rev.2) ; Improving the measurement of FISIM (2011); Improving the GDP estimates in constant prices (2010-2011); Development of relevant price indices (2009-2011); Improving the estimates of consumption of fixed capital (2010-2011).

Main areas of work (2) Improving the estimates of holding gains (2010-201); Recording of expenditure on research and development in national accounts (2010-2011); Recording of military expenditures in the national accounts (2010-2011); Setting of information and methodological basis for the development of estimates of non-produced non-financial assets (2009-2011); Improving the estimates of the output of the central bank (2011).

Priorities of the SSC of Azerbaijan in the Implementation of the 2008 SNA Output of the informal and illegal sectors; Improving the estimates of FISIM; Improving the GDP estimates in constant prices; Improving the estimates of consumption of fixed capital; Improving the estimates of holding gains; Recording of expenditure on research and development in national accounts; Recording of military expenditures in the national accounts; Improving the estimates of the output of the central bank.

The Action Plan was developed by: National Accounts Division; Branch Statistics Divisions; Price Statistics Division; Labour Statistics Division; Scientific-Research and Technological Design Center of the SSC.

Technical assistance for the implementation of the Programme Eurostat funded two-year TWINNING Project was launched in 2009. The project covers improvement of the Business register, business statistics data, price indices used in national accounts and as well improving the following national accounts area: sector accounts, input-output tables, financial accounts, estimates of consumption of fixed capital, measuring non-observed economy. The project objectives generally coincide with the objectives outlined in the Action Plan.

Results from the Implementation of the Action Plan (1) Methodological guidance and establishment of Working Group to estimate the stocks of non-produced non-financial assets, which includes representatives from relevant ministries and government agencies; Improved recording of military expenditures in national accounts, on the basis of additional data provided by the MoF; Improved estimates of holding gains; Improved spreadsheets and software for the calculation of national accounts indicators;

Results from the Implementation of the Action Plan (2) Revision of the statistical reports (questionnaires) to collect the necessary data for improving the estimates of consumption of fixed capital, production and distribution of R&D, FISIM, financial accounts indicators, accounts for the financial corporations sector; Integrated system of statistical reports and questionnaires was developed and put in place; Experimental estimates of supply and use tables in constant prices;

Results from the Implementation of the Action Plan (3) The following indices were developed: producer price index of transport services, postal services and telecommunications, price index of the housing market, the total price index for investment goods, taking into account imports and domestic production; Improved estimates of FISIM in current and constant prices; Allocation of FISIM to user sectors;

Results from the Implementation of the Action Plan (4) Analysis of the practices of European countries and development of methodological guidance for the estimate of illegal activities; Identification of data sources, collection of data and experimental estimates of illegal turnover and consumption of drugs, illegal production of alcohol and tobacco; Inquiry of tax inspectors on misreporting practices and corresponding estimates were done in cooperation with the Ministry of Taxes;

Results from the Implementation of the Action Plan (5) Experimental balances of labour resources for 2008-2010; Improved source data, methodological guidance and estimates of non-observed economy using the labour input method; Work on estimation of the number of foreign citizens working in Azerbaijan and of remittances to abroad was launched in cooperation with the Central Bank and the State Migration Office.

Thank you!