Since the establishment of the new china, and especially since the reform and opening up of the country, our economic and social development has achieved remarkable achievements worldwide. In the area of statistics, the work on national economic accounting has progressed in the search for improvements in the reform process, which has led to the breakthrough of a theoretical exclusion zone and technical difficulties, leading to the initial development of a system of national economic accounting that is consistent with internationally accepted accounting principles and methods and adapted to china's national circumstances。
Mixing systems from mps to mps and sna: historic transformation
National economic accounting is the macroeconomic information system that provides a comprehensive accounting and description of the national economic performance process and its results. For more than 30 years from the inception of the state to the beginning of the reform and opening up, and in keeping with the very centralized system of programme management at that time, our national economic accounting adopted the system of physical balance sheets (mps) for the eastern european countries of the former soviet union: the trial of national income began in 1953, and by 1956 a social product production, accumulation and consumption balance sheet, social product and national income production, distribution and redistribution balance sheet, labour resources and distribution balance sheet, etc., was prepared. The national economic accounts, which have been comprehensive and rich in content, provide an important basis for the formulation of national economic development plans and macroeconomic management by the central state council of the party and by the government of the party committees at all levels, reflecting vividly the achievements of economic and social construction in all sectors of the country。
Following the reform and opening up of the economy, our economic system and structure have changed dramatically, the services sector has evolved rapidly and foreign political and economic exchanges have become more frequent. Under the mps system, accounting results do not fully reflect the full picture of our national economic development and meet the needs for international comparisons in our external relations. The transition from mms to sna makes the establishment of a system of national economic accounting in line with international norms a necessary option for statistical reform。
After the mid-1980s, the country gradually introduced the system of national accounts (sna), which is widely used in market economies. In 1992, the national statistical office developed the system of national economic accounting (sna) of china. The programme adopts the basic accounting principles, content and methodology of the sna, retains parts of the mps system and is a hybrid of the mps and the sna。
The system of national economic accounts (sna) of china consists of both the social reproduction accounting table and the economic revolving account. The social reproduction accounting table consists mainly of GDP and its use tables, input output tables, financial flow tables, balance-of-payments balances and balance sheets; the economic cycle accounts include national economic accounts, institutional sector accounts, industrial sector accounts and economic cycle matrices. The social reproduction account and the economic revolving account (ecr) use different accounting methods from different angles, using a series of indicators that systematically describe the cyclical processes of the national economy and the interrelationships among the various sectors of the national economy。
The new system of accounting expanded the scope of accounting from the material production sector to all sectors of the national economy, compared with the old system of accounting; it enriched accounting, not only for flows in economic activities, but also for asset stocks; and it improved the accounting methodology by introducing the economic circular account accounting, based on the maintenance of the original balance sheet accounting. The initial establishment of the new system of national economic accounting was a major conceptual and practical breakthrough in the development of statistics in our country, whose accounting system has undergone historic changes。
However, the new accounting system still retains elements of the mps system, such as the classification of industries into material and non-material production sectors, with GDP calculated on the basis of national income. As a result, the new accounting system is in fact a mixture of both mms and sna accounting, which, it should be said, is based on the level of awareness at the time and the need for macroeconomic analysis and decision-making, organically integrating and making possible the transformation of the two major accounting systems that exist at the international level, both to meet the needs of people who are accustomed to using mps and to reflect economic development in a comprehensive manner, to provide a period of transition for macroeconomic analysis and national economic management, and to provide a solid basis for a comprehensive transition to the sna。
From the mixed system to the sna: the evolving new system of national economic accounting
As the socialist market economy system continues to develop and improve, the system of national economic accounting (sna) is constantly evolving and improving. In 1993, national income accounting under the mps system was eliminated; in 1995, the preparation of balance sheets and national economic accounts under the sna was initiated; since 1999, the national statistical office has been systematically revising the pilot programme, based on the 1993 sna, and developing the china system of national economic accounts (2002), which also marks a complete transition to the sna。
The system of national economic accounting of china (2002) adopted the basic accounting principles, content and methodology of the 1993 sna, removing the accounting content of the mps and largely aligning it with the new international standards. The normative text of this national economic accounting consists of basic accounting tables, national economic accounts and satellite tables。
The systematic revision of historical data, based on improved GDP accounting methods based on census results, is another important aspect of the development of national economics. Following the first national economic census in 2004, the national institute of statistics improved its annual GDP accounting methodology, fine-tuning industry classifications, using production and income methods to account for industry value added, and indirectly calculated technical difficulties such as financial intermediation services, home-owned housing services, computer software, etc. Were also reformed in accordance with the sna recommended methodology. At the same time, historical data on GDP for the period 1993-2004 have been adjusted to match GDP for the census year. Input output accounting and financial flow accounting, which are closely related to GDP accounting, have also adjusted and revised census-years and historical years based on economic census data. Following the second national economic census in 2008, the national institute of statistics revised the initial 2008 GDP accounting under the GDP accounting system, while the historical data for 2005-2008 were systematically revised。
In 2004, the national statistics office further regulated the GDP data dissemination system, introduced a system of accounting and data dissemination of GDP based on initial accounting, preliminary verification and final verification, and further harmonized accounting workflows and data revisions with the prevailing international statistical norms。
National economic accounting has become an indispensable basis for decision-making in economic management
GDP, as a core indicator in the accounting system, measures the final outcome of productive activities from different perspectives and is an important indicator reflecting the overall national economy. Owing to the macro-level and comprehensive nature of national accounting data, it has become an important source of data for macroeconomic management and analysis and an important basis for the formulation of national economic development strategies and macroeconomic policies, the growth goals of our national economy and the development of industrial structures are based on GDP accounting。
The input output tables have been widely applied to industrial policy analysis, price policy analysis, environment and energy policy analysis; the capital flow tables have been widely applied to income distribution analysis, capital markets and currency market analysis; the balance sheet has been applied to capital stock analysis and analysis of productive potential; and the balance-of-payments balance sheet and its related information have served as the basic basis for our study and analysis of our external economic situation。
Looking back at the course of development for more than 60 years, our national economic accounting has accomplished a great deal, but there is still much to be done to improve our accounting system in comparison with the developed countries. “it is true that the males are in the middle of the road, and the steps are beginning to rise”. Looking to the future, statistical offices will be further emancipating their thinking, making radical changes, providing more accurate accounting data for macro-level decision-making and providing better quality services to the public in society。
