3.81 Definition:
Actual final consumption consists of the goods or services that are acquired by resident institutional units for the direct satisfaction of human needs, whether individual or collective.
3.82 Definition:
Goods and services for individual consumption ('individual goods and services') are acquired by a household and used to satisfy the needs and wants of
members of that household. Individual goods and services have the following
characteristics:
3.83 Definition:
Services for collective consumption ('collective services') are provided simultaneously to all members of the community or all members
of a particular section of the community, such as all households living in a
particular region. Collective services have the following characteristics:
3.85
For the goods and services provided by government
units, the borderline between individual and collective goods and services is
drawn on the basis of the Classification of the Functions of Government (COFOG).
By convention, all government final consumption expenditure under each of the
following headings should be treated as expenditures on individual consumption: (a) 7.1 Medical products, appliances and equipment 7.2 Outpatient
services 7.3 Hospital services 7.4 Public health
services (b) 8.1 Recreational and sporting services 8.2 Cultural services (c) 9.1 Pre-primary and primary education 9.2 Secondary
education 9.3 Post-secondary
non-tertiary education 9.4 Tertiary
education 9.5 Education not
definable by level 9.6 Subsidiary
services to education (d) 10.1 Sickness and disability 10.2 Old age 10.3 Survivors 10.4 Family and
children 10.5 Unemployment 10.6 Housing 10.7 Social exclusion
n.e.c. Alternatively individual consumption expenditure of general
government corresponds to division 14 of the COICOP, which includes the
following groups: 14.1 Housing (equivalent to COFOG group 10.6) 14.2 Health (equivalent to COFOG groups 7.1 to 7.4) 14.3 Recreation and culture (equivalent to COFOG groups 8.1 and
8.2) 14.4 Education (equivalent to COFOG groups 9.1 to 9.6) 14.5 Social protection (equivalent to COFOG groups 10.1 to 10.5
and group 10.7). The collective consumption expenditure is the remainder of the
government final consumption expenditure. According to COFOG, it consists in particular of: (a) General public services (division 1) (b) Defence (division 2) (c) Public order and safety (division 3) (d) Economic affairs (division 4) (e) Environmental protection (division 5) (f) Housing and community amenities (division 6) (g) General administration, regulation, dissemination of general
information and statistics (all divisions) (h) Research and development (all divisions).
3.86
The relationships between the various concepts employed can be shown in a
table.
3.84
All household final consumption expenditure is individual. By convention, all
goods and services provided by NPISHs are treated as individual.
|
|
| Sector making expenditure |
|
|
|
|
| Government | NPISHs | Households | Total acquisitions | |||
Individual consump- tion | X (= Social transfers in kind) | X (= Social transfers in kind) | X | Households actual individual final consump- tion | ||||
Collective consump- tion | X | 0 | 0 | Government's actual collective final consumption | ||||
Total
|
| Government's final cons. expenditure
|
| NPISHs final cons. expenditure
|
| Households final cons. expenditure
|
| Actual final consumption = Total final cons. expenditure
|
3.88 By convention, there are no social transfers in kind with the Rest of the World (though there are such transfers in monetary terms). As a consequence, total actual final consumption is equal to total final consumption expenditure.