Saving appearing in the National Disposable Income and its Appropriation Account as per 1968 SNA Consolidatedset of Accounts is subject to statistical discrepancies. In contrast saving is a balancing item in the Use of Income Account of 2008 SNA sequence of accounts without any element of statistical discrepancies. The‘reason for the absence of statistical discrepancies in sequence of accounts of 2008 SNA is that all statistical discrepancies are reconciled in the balancing of supply and use of products in the SUT framework and preparation of a balanced SUT is considered a pre-requisite for attempting sequence of accounts. This paper examines the use of income accounts in the two Systems to identify what products reconciliation affects the saving estimate and what care need to be taken in the reconciliation exercise for SUT.
