Description of methods and sources for Albania - INSTAT

IPA 2009 Multi-beneficiary StatisticalCooperation Programme3.26 Subsidies on productsSubsidies are current payments without compensation that governments make toenterprises on the basis of their production activity or the quantity or value of thegoods and services they produce, sell or import.39Table 3.34: Subsidies, 2006In Million LEKTypeofsubsidiesTotal Structure3.718 100.0Drinkablewater 2.070 55.68Waterforirrigation 569 15.30Railwaytransportofgoods 450 12.10Passengertransport 87 2.34Schoolbooks 199 5.35Studenttreatmententerprise 343 9.23As for drinkable water, the subversion is given mainly to help the system of potablewater to our country. These subsidies are important to revitalize the system ofservices offered by the water supplier.Schoolbooks comprise the subsidies offered to elementary schools to subsidy someof the books distributed to the pupils.All other subsidies are directly connected to product and are well defined.We extract data from the file of the Ministry of Finances on the expenditure side.Subsidies are treated as separate codes of the Accounting System of the Governmentand we can easily extract that kind of data. We can even use the annual accounts thatevery business is obliged to deliver by the end of the first quarter of the year.The data are well detailed and are related to the specific institute that holds thesubsidies. Most of the subsidies are given to public corporations and therefore itcould be easily allocated to a particular NACE category.As regards the process of calculating the value added by the economy we subtract thevalue of the subsidies. This step is done because the subsidies are already declared inthe output and they are directly reflected to the value added. It is needed to clear thesubsidies from the value added to have a clearer view of the real facts.We have taken into account this specific type of subventions that is more likelydirectly connected to the products. The Ministry of Finances uses a wider range ofdata also representing data about subsidies that might not be connected directly to82/236