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Supply & Use Table (SUT)�සැපයුම් හා භාවිත වගුව

M.A.S. Laksiri

Statistician

National Accounts Division

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Two identities in the SUT

  • Supply

Output measured at basic prices (excludes taxes on products, includes subsidies on products)

  • Use

Use (purchases) measured at purchasers’ prices

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Basic idea of Supply and Use Tables

  • Supply side: shows how products appear in the economy (either by production or imports)

Total Supply = Total Domestic Supply + Imports

  • Use side: shows how products are �used by industries or by final consumers

Total Use = Intermediate Use + Final Use + Exports

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Output

=

Intermediate Use

+

Value added �(Wages, Interest, Rent & Profit)

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A Basic Identity

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Value added �(Wages, Interest, Rent & Profit)

=

Output

-

Intermediate Use

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A Basic Identity cont’

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Basic idea of Supply and Use Tables

Total Supply = Total Use

Domestic Output + Imports = IU+FU+X

GVO + M = IU+FU+X

GVO – IU = FU + X – M

GDP = Final Use + Net Export

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  • Farmer (F) buys seed(imported)(S, 600), produces Paddy (P, 1000), sells to miller
  • Miller (M) buys Paddy (P, 1000), produces Rice (R, 1800), sells to retailer (R, 1400) and exports (X, 400)
  • Retailer (Re) buys Rice, (R, 1400) adds Tax (T, 100) and sells to Households (H, 1700)

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An Example

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An Example cont’

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Three Producers ;Farmer, Miller, Retailer

Four Products; Seed, Paddy, Rice, Trade Margin

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An Example cont’

  • Where do seeds come from?

Imports (M, 600)

  • Retailer: Buys at 1400, sells at 1700, however output = 200 (Ma); Tax 100
  • Output of the retailer is called trade margin (Ma)

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Domestic Supply table at basic price

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Farmer

Miller

Retailer

TOTAL

Seed

Paddy

1000

1000

Rice

1800

1800

Trade Margin

200

200

TOTAL

1000

1800

200

3000

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The Supply table

  • Output by product and by type of supplier (domestic industries and imports)
  • Transformation from basic prices to purchasers’ prices

Products

Domestic Supply @ Basic Prices

Industries

Margin

Total supply @ Purchasers’ Price

Imports

Taxes less Subsidy

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Supply table at purchasers’ prices

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F

M

R

TOTAL

Imports

Tax

Trade Margin

TOTAL (Purchaser’s Price)

Seed

600

600

Paddy

1000

1000

1000

Rice

1800

1800

100

200

2100

Trade Margin

200

200

-200

0

TOTAL

1000

1800

200

3600

100

-

3700

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The Use table

  • Three main Uses:

1. Intermediate Use

2. Final Uses

Consumption

Investment

3. Exports

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Use Table

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Intermediate Use

TOTAL

Final Use

Export

TOTAL

F

M

R

Seed

600

600

600

Paddy

1000

1000

1000

Rice

1700

400

2100

Margin

-

TOTAL

600

1000

1600

1700

400

3700

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Use Table cont’

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Intermediate Use

Total

Final Use

Export

TOTAL

F

M

R

Seed

600

600

600

Paddy

1000

1000

1000

Rice

1700

400

2100

Margin

0

Sum

600

1000

1600

1700

400

3700

VA

400

800

200

1400

TOTAL

1000

1800

200

3000

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Valuation of SUT

  • By product

Total supply = Total uses

  • By industry

Total output = Intermediate Use + Value added

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SUPPLY TABLE

USE TABLE

TDS

M

Taxes

Margin

TS

IC

FC

X

Total Use

Seed

0

600

600

600

600

Paddy

1000

1000

1000

1000

Rice

1800

100

200

2100

1700

400

2100

Margin

200

-200

0

0

3000

600

100

0

3700

1600

1700

400

3700

VA

1400

TDS

3000

Production measure of GDP = TDS-IC + Taxes = 3000 – 1600 + 100 = 1500

Expenditure measure of GDP = FC + X – M = 1700 + 400 – 600 = 1500

Income measure of GDP = VA + Taxes = 1400 + 100 = 1500

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  • It balances
    • Supply equal to demand for each product
      • GDP production=GDP expenditure
      • Gives the highest quality estimates.
  • In practice, will NEVER balance after collecting source data

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Why Sut ?

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Thank You