Gross Domestic Product etc - 19

Expenditure approach GDP (continued from previous post)

2.40 Consumption expenditures incurred by general government and
NPISHs: The treatment of consumption expenditures incurred by general
government and non-profit institutions serving households (NPISHs) serving
households is the same. Expenditures on a wide range of consumption
goods and services are incurred by general government or by NPISHs, either
on collective services or on selected individual goods or services. The
government expenditures are financed principally out of taxation or other
government revenues while those of the NPISHs are financed principally out
of subscriptions, contributions or donations or property income. Expenditures
on the outputs of non-market producers that are provided free, or at prices
that are not economically significant, to individual households or the
community account for most of the final consumption expenditure by
governments and NPISHs. It is important to distinguish between expenditures
made by general government or NPISHs on the outputs of non-market
producers - i.e., the goods, individual or collective services they actually
produce - and the intermediate expenditures and other costs incurred by
non-market producers owned by general government or NPISHs in the course
of producing those goods or services. The distinction between the inputs to,
and outputs from, non-market processes of production needs to be
emphasized because the final consumption expenditure made by general
government or NPISHs must be incurred on the outputs. The values of these
expenditures are equal to the imputed values of the non-market outputs less
the values of any receipts from sales. These receipts may be derived from
sales of some goods or services at prices that are not economically significant
(sales of secondary market output).[Reproduced from CSO publication]
[to be concluded]