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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	TOTAL	Final Use	Export	TOTAL
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	Total	Final Use	Export	TOTAL
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