Utilizing Administrative Data in National Accounts: Sources, Quality Evaluation, and Important Considerations (95 charac

2. USE OF ADMINISTRATIVE DATA BOTSWANA

3. Contents • National Accounts Data Sources • National accounts data in administrative records • Quality evaluation • Important Matters to Note on Administrative Data • Memorandum of Understanding • NSDS

4. National Accounts Data Sources Main sources: • Administrative records; • Statistical methods: (Surveys and Census) • Estimation methods in the national accounts departments. -Balancing Item method -Commodity flow method - Benchmark ratio method

5. Data from Administrative Records • Records prepared and submitted to higher authority by mandates: • Government revenue and expenditure statistics (compiled by the Ministry of finance on government budget); • Foreign trade statistics (i.e., exports and imports of goods through customs); • Money and banking statistics (compiled by the central bank);

6. Contd. Administrative Records II)Reports prepared NBFIRA – Non Bank Financial Institutions Regulatory Authority • Reports on insurance companies (life insurers, non-life insurers, re insurers and insurance brokers including fund administration business) b)Reports on Capital markets (Stock exchange, Central Securities Depository and Stock brokers) c)Reports on lending Activities (Micro lenders and Pawn shops)

7. Contd. Administrative Records d)Reports on Investment Institutions (Asset managers) e) Reports on Pension funds and medical Aids

8. III) Tax records e.g. VAT, Excise taxes (processed by tax authority); IV) Balance of Payments (Exports and Imports of goods and services)

9. Contd. Administrative Records V)Social security system (Wages/salaries, social contributions) VI)Mineral Production Statistics compiled by Department of Mines VII)Exports of Rough and Polished diamonds (Diamond hub) VIII)Tourism Statistics (Arrivals and Departures)

10. Contd. Administrative Records IX)Records prepared for internal uses by corporations: a)Business accounts of corporations that include the income statement, the change in the financial position or cash-flow statement, and the balance sheet; b)Quantity and Sales information from large corporations (Fuel, Electricity, Water, Communications, Transportation etc...)

11. Specific National accounts data in administrative records • Administrative records can provide information on production accounts and final uses of the government sector the financial corporations sector, the non-financial corporations sector and Rest of the world sector. • Household sector data is not obtainable from admin data it need survey data

12. Contd. • Government revenue and expenditure statistics, money and banking statistics and the financial information of insurance companies, pension funds etc.. can provide information on transactions of property income and current transfers between various sectors of the economy.

13. Contd. • Taking advantage of administrative records in the compilation of national accounts requires a close working relationship with the agencies that are responsible for those records and the success depends on the compiling agency specifying the details that are necessary for national accounts; the ability to utilize those records; and the speed with which the records are made available

14. Quality evaluation for Administrative Records data Key Aspects: • Coverage and reliability are high; • Timeliness is low (it takes time to process reports)

15. Important matters to note on Administrative Data • Administrative data tend to be used more in Quarterly National Accounts (QNA) than in Annual National Accounts (ANA). • Administrative data systems generally designed with other objectives than obtaining statistics, • There may be limitations in terms of coverage, units, data definitions, period covered, and level of detail.

16. Contd. • Due to some limitations, direct statistical collections may be preferred for annual data. • On the other hand, the costs and response burden associated with a survey can be avoided through effective use of Admin data.

17. Contd. • An important type of administrative data for QNA is from value added tax (VAT) systems. • VAT systems collect monthly or quarterly data on sales and purchases as part of the tax collection process. • The data may also be suitable for statistical purposes and are being used in an increasing number of countries. • VAT systems have the benefit of offering comprehensive or, at least, very wide coverage.

18. Contd. • VAT systems are not always designed with statistical objectives in mind which in cases leads to problems with regard to national accounts requirements on issues such as timeliness, timing, industry classifications, units, and limited product detail.

19. Contd. • There is often a need for extensive interaction with the tax collection authorities to understand the data, to produce tabulations in a form suitable for national accounts compilation, and to make adjustments to tax forms and procedures to better meet statistical objectives.

20. Contd. • Other product tax systems may also provide data on the underlying flows of taxable products, such as alcohol and petroleum. • In Botswana data from administrative records is augmented by data from quarterly business surveys and annual business surveys.

21. Memorandum of Understanding • Statistics Botswana and Botswana Unified Revenue Services (BURS) signed a memorandum of understanding (MoU) in the year 2015. • The agencies mutually understand that, subject to legislative provisions, information available to one agency, which is relevant to the responsibilities of the other agency, will be shared.

22. Contd. • The agencies recognize that the provision of timely, accurate, and relevant information about the Business Register, National Accounts and Trade Statistics is a vital component of each agency’s function to encourage well-informed decision making.

23. Contd. • They mutually understand that cooperation on the definitions, collection, purpose of use or usage, classifications, on-going management and publication of information acquired from the Botswana Unified Revenue Service is desirable.

24. Contd. • Statistics Botswana and BURS formed a technical working committee for implementing memorandum of Understanding and terms of reference were drafted. • The technical committee will have the key advisory role to ensure the highest quality of the results of the activities are achieved.

25. NSDS • The tax authority is to be a sector in the NSDS.

26. Thank you