A) Stages of System Implementation:

The former Central Statistical Organization (CSO) used to prepare estimates of gross domestic product by type of economic activities in addition to a number of other macroeconomic aggregates, both at current and constant prices.

By the end of 1998, CSO became part of the General Secretariat of the Planning Council, where the Statistics Department continued to compile these estimates, in parallel to preparations for the implementation of 1993 System of National Accounts (SNA). It capitalized on the improvement in regard to statistical sources and on availability of numerous data through annual field surveys carried out continuously and the significant technical and financial support. This contributed considerably to the promotion of statistics, providing lots of data extracted from actual sources and minimizing indirect estimates. That formed an excellent opportunity for the implementation of the 1993 SNA.

Since the implementation of the system requires a great deal of detailed data whose provision needs a long time and great efforts, the plan was to carry out the implementation of the system on several phases depending on data availability, technical capabilities and staff needed to achieve that goal. This is actually the approach followed in many countries where statistics and statistical programmes are still developing.

The Statistics Department started implementing the 1993 SNA and prepared a time frame for the implementation of the system, beginning with intensive training courses to develop the capabilities of the staff working in the field of national accounting and other supporting bodies, and including participation in various regional and international conventions and seminars. Within this frame, 2001 data was selected to start implementing the system. In addition, different phases for the compilation of the accounts were identified. It was agreed that phase one should cover the compilation of current accounts in addition to capital accounts from within the accumulation accounts. The main decisive factor for this selection was the availability of data.

The following stages would cover the supply-and-use matrix, in addition to output and input tables as well as the compilation of the accumulation accounts and balance sheets.

Obviously this should not prevent any overlapping of these phases. There were efforts already made to compile the supply-and-use matrix. Completion is still under way in this area. Work has started with the compilation of National Accounts at current prices, to be followed by recompilation of these accounts at constant prices, since this process requires preparation and compilation of many price and quantity indices for all transactions in the different accounts.

B) Results Achieved from this Experience :

1- Statistical Improvements :

Many gains were achieved from the experience but the most significant was the enrichment of experience, knowledge and skills acquired by the staff of the national accounts unit. The experience exposed the statistical gaps, how to deal with them and means to avoid them in the future. More over the experience made it possible to identify weaknesses and shortcomings in the statistical system and what should be done, identifying statistical field surveys to provide direct information rather than using indicators or indirect methodologies for preparing estimates. In this context, the General Secretariat carried out the comprehensive 2004 Economic Survey, leading to an improvement in the applications and raising the level of accuracy and coverage.

2- Implementation :

The set of current accounts were actually compiled in addition to the capital account for the years 2001-2005, for the main institutional sectors. The Statistics Department is concerned with documenting methodologies used and statistical sources for all sectors and economic activities, in order to detect any deviation from the recommendations of the system, their causes. This would permit their prevention in future applications, and the identification of statistical needs and phases of improvement.

3- Adopted Methodologies for the System Implementation :

For the practical implementation, there was a commitment to the principles, definitions, methodologies and rules of presentation recommended in the system as well as the guiding manuals published by the United Nations in this area. This commitment was maintained to the extent that the available statistical capabilities allow. This shall be improved in light of data availability in the future.

Following is a summary of the dimensions of this experience, results achieved and adopted methodologies for the preparation of estimates and accounts compilation.

F irst : Classification of Institutional Sectors:

The national economy (resident units) was classified into four main sectors in addition to the rest of the world sector, which represents the transactions of the resident units with the non-resident units. Currently it is not possible to separate non-profit institutions serving the household sector from the other sectors. Available statistical data and sources were not enough to achieve sub-sector classifications as recommended in the system, e.g. sub-sector of foreign controlled enterprises was not identified as a sub-sector, as recommended in the system. The country's transactions to and from the rest of the world were all classified under the rest- of-the-world sector. All these main sectors and sub-sectors were classified by to economic activity according to the International Standard Industrial Classification (ISIC 3.1), but at different levels of classification. Capital ownership of the institutional unit was considered as an indicator to identify control authorities and to distinguish between public and private sectors. As for distinction between financial enterprises, non-financial enterprises and general government, basic criteria (objective, function, behavior) recommended by the system were adopted in classifying main sectors. Unincorporated enterprises, that have been merged into the households sector as unincorporated enterprises and defined in the system as those units which have no separate accounts from households, were distinguished as follows:

Real estate services and business services : Rents of residential and non-residential building were assumed to be unincorporated enterprises
Transport and communication activities: Transport activities outside the establishments were considered as unincorporated activities.
Traditional agricultural activities: All these were assumed to be part of the unincorporated sector.

Building and construction activities outside the establishments: these were considered among unincorporated enterprises.
Domestic servants.

Second: Accounts and Tables Compiled for Each Sector :

A set of current accounts in addition to the capital account (with net lending or net borrowing as its balancing item) from within the set of accumulation accounts were compiled for the financial enterprises sector, non-financial enterprises sectors, general government sector and the household sector including unincorporated enterprises as defined before. Likewise, resources and uses account (goods and services) was compiled for the national economy. As for the rest of the world sector, all accounts up to the capital accounts were compiled.
These sets of accounts (current and capital) were also compiled for the economic activities forming the non-financial enterprises sector.
An integrated economic table was also compiled, showing the sectors of the national economy. This table covers all accounts up to the capital account for all sectors.
A summary table showing main economic aggregates was also compiled.

T hird : Adopted Classifications, Definitions and Concepts :

In general, definitions and concepts as well as classifications and estimation methodologies recommended in 1993 SNA have been followed unless otherwise mentioned, or a reference has been made to a limitation in implementation resulting from data shortcomings. In some cases, recommended methodologies of the 1968 SNA have been followed, as in the case of inputted bank service charges. The main classifications used were:

International Standard Industrial Classification (ISIC 3.1)
Classification of Final Consumption Expenditure of Government by Functions.
Classification of Final Consumption Expenditure of Households by Purpose.
Classification of Transactions, 1993 SNA.

F ourth : Methods of Estimation:

In general, the production approach was adopted in the calculation of the value added of all main economic sectors (financial enterprises, non-financial enterprises).
The GDP of the general government sector was estimated by calculating the cost component (compensation of employees + intermediate consumption + depreciation), i.e., the cost approach.
Government final consumption expenditure is equal to total government expenditure less market and non-market sales of this sector.
With regard to the government final consumption expenditure, expenditures on education, health and some other social services were considered as individual expenditures, and the remaining as collective expenditure (actual).
The expenditure approach was adopted for the estimation of expenditure on the GDP. The Household income and expenditure survey was used to estimate household consumption expenditure.

F ifth : Statistical Sources:

1 - General Government Sector :

The government closing accounts (Ministry of Finance) were the main source of data regarding the general government sector.
A link was established between the entries of those closing accounts and the transactions manual of the 1993 SNA, where transactions codes were used to identify direction and treatment of the closing accounts items of the general government, whether expenditures or revenues, for the process of compiling the accounts. Similarly, market and non-market sales by the government were identified.
Depreciation were estimated as a ratio to the value added due to lack of information regarding acquision of assets by the government.
Changes in inventories was not taken into consideration due to lack of any kind of information regarding government inventories.

2 - Non-Financial Enterprises Sector, including :

Electricity, gas and water-Bulletin of Industry and Energy Statistics.
Construction – Bulletin of Building and Construction Statistics
Manufacturing industries – Bulletin of Industry and Energy Statistics.
Agriculture – Agricultural Statistics, Ministry of Municipal Affairs and Agriculture. Rents of agricultural lands were calculated by multiplying crop area x Donum (1000 sq.m.) average rent.
Extraction industries – Bulletin of Industry and Energy Statistics.
Services (health, education, personal, recreational, social, cultural) – Bulletin of Social and Personal Services Statistics.
Trade (wholesale & retail trade) - Bulletin of Wholesale and Retail Trade Statistics.
Transport, storage and communications – Bulletin of Transport and Communications Statistics.
Business Services – Bulletin of Business Services Statistics.
Restaurants and Hotels – Bulletin of Restaurants and Hotels Statistics.

3 - Household sector (including unincorporated enterprises).

Household Income and Expenditure Survey.

4 - Financial Enterprises Sector :

Bulletin of Banks and Insurance Statistics – this sector covers all institutional units engaged in financial services under items 65,66 and 67 of the International Standard Industrial Classification (ISIC.3.1).

5 - Rest of the World Sector :

Balance of payments, prepared by Qatar Central Bank is the main source of information. The Central Bank is implementing revision (5) prepared by the International Monetary Fund, for the compilation of balance of payments.