Description of methods and sources for Albania - INSTAT

IPA 2009 Multi-beneficiary StatisticalCooperation Programme3.1.5 Subsidies on productsSubsidies on products are non - reverse payments to resident market made by publicgeneral government units to the companies in the form of a certain amount of money perunit to support production of goods or services. They are more typical in agricultureproduction (water for irrigation), drinkable water, student treatment enterprises,passengers’ transport and transport of goods (railway) and schoolbooks. Subsidies inimports (energy) consist of subsidies of goods or payable services when the productsurpasses the border of economic territory or if the services were made to residentinstitutional units. Subsidies on imported energy were present until 2005.3.1.6 Data sourcesThe main data sources of GDP by production approach are annual accounting statements(profit and loss account, balance sheets data on stocks of assets, and inventory data),administrative data and statistical survey. Annual accounting statements and statisticalsurvey (structural business survey) are the primary and exhaustive databases for allactivities. The instrument used in the process of estimation is business register ofenterprises.In a more detailed level the data sources used by the production approach are described inAnnex D.3.1.6.1 Business register of Albania (BR)Only public enterprises existed in Albania until 1990. Since that period, however, thesituation has changed markedly and private enterprises already play a significant role in theeconomy. The tremendous growth in the number and output of these enterprises hasnecessitated the development and use of a statistical business register to estimate GDPaccurately in a cost effective way. This process began on the 1st January 1993 with theestablishment of a register that required all economic entities in Albania to register theirbusinesses. Another important milestone was the establishment of new law (no 7687 date16.03.1993 article 3) that obliged all tax offices to provide INSTAT with information onthe creation of new enterprises, changes and deaths, and which was underpinned with aMemorandum of Understanding between INSTAT and the General Directorate ofTaxation. Another important date in the development of the register was 18.07.1994 whenapproval was reached on applying the International Nomenclature of the EU for Economicactivities (NACE, at the 4 digit activity level)The reform of business registration procedures reduced to one day the time required toregister new businesses and combined all registration steps in a single procedure.A new Law on business registration reform, on May 3, 2007. Law 9723 "On the NationalRegistration Centre", establishes the National Registration Centre (NRC) as a new centralpublic institution.24/236