Expenditure on final consumption (P.3)
Expenditure on final consumption consists of expenditure made by resident institutional units on goods and services that are used to directly satisfy the individual or collective needs of the members of the community. Expenditure on final consumption may take place in the economic territory or elsewhere.
The difference between these concepts lies in the treatment of determined goods and services financed by the public administration or ISFLSH, but supplied to households as social transfers in kind.
Expenditure on final consumption by the public administration includes two categories similar to those of the ISFLSH:
The value of the goods and services that the public administration produce themselves and that do not constitute capital formation or sales;
Acquisitions by the public administration of goods and services produced by market producers, that they supply to households, without transformation, as social transfers in kind. This means that the public administration only pays for goods and services that salespeople supply to households.