1993 SNA Update Information - Expert comments for issue:
Dépenses militaires | | Issue description | | Issue description in [English] | [French] | [Russian] | [Spanish] | | Le SCN de 1993 répartit les acquisitions militaires entre armes offensives et leurs modes d’utilisation et toutes les autres acquisitions. La première catégorie mentionnée est exclue de la formation de capital peu importe la durée de vie utile. Ce traitement laisse entendre que la « défense » n’est pas un service que fournit une administration publique par l’utilisation de matériel militaire en tant qu’actifs associés. De plus, les armes dont le coût a déjà été passé en charges peuvent être effectivement retirés des stocks en vue de leur utilisation ou exportation, et elles devraient être compensées par un élément négatif de la consommation finale de l’administration publique. Y a t il lieu de distinguer autrement la formation de capital brut et la consommation intermédiaire? |
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| | Expert comments | | Number of expert comments for selected issue: | 3 | | Date posted | Source | Comment |  | | 8/24/2004 | Robin Lynch |  m1(c)uk; | | 8/11/2004 | Fadhil Mahdi (ESCWA) | The 1993 SNA distinguishes between military expenditure for civilian purposes (such as police, civil defense) and military expenditure for military purposes (such as purchases of tanks, ships, fighter aircraft…), where the first are treated as fixed capital formation and the latter are treated as intermediate consumption in government services.
The AEG approved the proposal of the Canberra II group to drop this distinction in the 1993 SNA and recommended treating such military expenditures as fixed assets.
However, this proposal did not meet unanimous acceptance from AEG members. In this regard, we think that the 1993 SNA treatment of this issue should remain since military expenditure does not generate tangible production. In addition, these expenditures increase drastically the value of capital formation in developing countries. While the value added generated by the total investment becomes very small especially in the non-producing countries importing the weapons. | | 4/27/2004 | Andre Vanoli | m1(c)vanoli; |
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