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Final consumption expenditure and actual final consumption: summary
14.340 The purpose of this section is to summarise the conceptual interrelationship between the main consumption aggregates for the three sectors in which final consumption takes place, namely, the household sector, the NPISH sector and the general government sector. On a practical level, it may be noted that each of the aggregates, whether referring to consumption expenditure or actual final consumption, has to be derived from data on expenditures.
The expenditure aggregates
14.341 The main expenditure aggregates are as follows:
Actual final consumption
14.342 NPISHs have no actual final consumption, and so actual final consumption is confined to households and general government.
Actual final consumption of households
14.343 This is measured by the value of all the individual consumption goods and services acquired by resident households. There are three sets of goods and services entering into household actual final consumption:
Actual final consumption of general government
14.344 This is measured by the value of the collective consumption services provided to the community, or large sections of the community, by general government. Its value is given by item (c) (ii) in paragraph 14.341.
Total final consumption in the economy
14.345 Total final consumption in the economy may be viewed from two angles. It may be defined from the expenditure side as the total value of all expenditures on individual and collective consumption goods and services incurred by resident households, resident NPISHs serving households and general government units. Alternatively, it may be defined in terms of actual final consumption, as the value of all the individual goods and services acquired by resident households plus the value of the collective services provided by general government to the community or large sections of the community.