Note on terminological issues

Note concerning terms and definitions from Social Budgeting (ref. 8022)

"Throughout Social Budgeting, reference has been made to economic issues and repeatedly to the relation between social expenditure (revenue) and GDP. It is hoped that readers will have achieved a relatively clear methodological and conceptual view of "social expenditure". This may not be the case, however, for the macroeconomic concept of production (GDP), although "social expenditure" in social sciences as well as in politics is often related to this worldwide successfully established statistical construct. Therefore, this annex concentrates on only some of the basic definitions and concepts of measurement of GDP, and a few of its derivatives. Interested readers may refer to the System of National Accounts (SNA) 1993, which is recommended to all those who would like to understand comprehensively the interdependencies between economies and social protection systems.

"Those who do will realize that not all "economic" labels used in this book are actually identical with the ones used in the SNA. The following comparative listing of notions might help to understand the links of some of the labels used in this text to the ones used in the SNA:

In the text


Subsidies   Transfers
Private organizations   Non-profit organizations serving households (NPISHs)
Enterprises (sector)   Corporations
Government (sector)   General government
Private households   Households
Economic sector   Industry
Capital market   Financial market
Investment(s)   Capital formation
Capital income   Property income
Operational surplus   Operating surplus

"All the definitions are either direct quotations or are equivalent to the explanations given in the SNA 1993. As this information is taken from different parts of the SNA 1993, we do not give explicit citations here. For a full understanding of national accounts, the reader should refer to that publication."