I. Overall Assessment

1. While noting some recent improvements, the mission that prepared this Report on the Observance of Standards and Codes (ROSC) identified shortcomings in Paraguay’s statistical practices and databases that have the potential for detracting from the accurate and timely analysis of economic and financial developments, and the formulation of appropriate policies. The country lacks an integrated statistical framework that would take account of the various analytical and accounting linkages across macroeconomic statistics, and the relationships between regulatory tools, intermediate objectives, and policy goals. The weaknesses in the statistical legislation, as well as the scarcity of resources and low priority given to statistical work are important impediments to the production and dissemination of timely, methodologically sound, and reliable statistics.

2. The mission identified the main weaknesses and made recommendations to further enhance Paraguay’s adherence to international statistical standards. In particular, (i) with the exception of the consumer price index, there is significant room to improve the methodological soundness of all official statistics, for example, by expanding their scope and adopting internationally accepted classification systems and basis for recording; (ii) the accuracy and reliability of the statistics also needs to be improved, for instance, by expanding the data sources for most sectors, as well as by strengthening data validation and statistical techniques for most datasets; (iii) the periodicity and timeliness of national accounts and government finance statistics do not fully meet international standards, and the intersectoral consistency of the macroeconomic statistics cannot be ascertained with the data disseminated to the public; and (iv) there are opportunities to improve the access to official statistics and metadata, as well as the services offered to the users by the data-compiling agencies.

3. Paraguay participates in the GDDS since September 21, 2001 and meets the recommendations for the coverage, periodicity, and timeliness of most data categories. However, there are some important exceptions, including (i) the lack of production indices and data on public and publicly guaranteed debt service schedule; (ii) limitations in the coverage of national accounts (data on national income and savings are not compiled), general government operations (data on local governments are not available), public and publicly guaranteed external debt (excludes short-term debt of the nonfinancial public sector), and monthly data on foreign trade (excludes goods not recorded by Customs); (iii) the periodicity of data for the consolidated central government operations (data on nonbudgetary operations are only disseminated on an annual basis); and (iv) the timeliness of annual GDP (data are disseminated only when data based on the income approach becomes available) and data on the consolidated central government operations. Only data for budgetary central government are disseminated on a monthly basis. Appendix I provides an overview of Paraguay’s dissemination practices compared to the GDDS.

4. In applying the IMF’s Data Quality Assessment Framework, July 2003 (DQAF), the remainder of this section presents the mission’s main conclusions. The presentation is done at the level of the DQAF’s quality dimensions, by agency for the first two dimensions and across datasets for the remaining four. Section II provides a summary assessment by agency and dataset based on a four-point scale. This is followed by staff recommendations in Section III. Practices compared to the GDDS are summarized in Appendix I. The authorities’ response to this report and a volume of detailed assessments are presented in separate documents.

5. Prerequisites of quality and assurances of integrity:

• The compilation of statistics by the Central Bank of Paraguay (CBP) is based on a legal framework that broadly supports mandatory data reporting and the confidentiality of the reported data. While the resources are minimally adequate for the current statistical programs, they are insufficient to support important developmental work. The concentration of work in macroeconomic statistics at the CBP puts pressure on its resources and raises a fundamental issue of the appropriateness of a central bank to compile price statistics. The CBP maintains some informal contacts with data users, but there are no formal consultations with users to monitor the relevance of the statistics or to identify emerging data requirements. CBP authorities are aware that continued efforts are needed to improve the quality of the statistics, but more systematic data quality verification procedures need to be established. The CBP is a technical institution that has administrative autarky and normative autonomy, and CBP staff are independent in their choice of data sources, methods, and data dissemination policies, within the limits of available resources. Processes and activities in the workplace promote a culture of professionalism. The CBP is authorized to comment, clarify, and correct erroneous interpretations or misuse of statistics by users or by the media. The terms and conditions for compiling statistics are specified in the relevant laws, which are available to the public. Government officials outside the CBP have no access to the information until it is released to the general public. CBP regulations, which are well known by the staff, clearly specify the rights and responsibilities of CBP staff, including rules of conduct and disciplinary sanctions.

• The legislation supports the collection, compilation, and dissemination of government finance statistics (GFS), budget, and accounting data by the Ministry of Finance (MOF). Nonetheless, the institutional responsibility for collecting, compiling, and disseminating GFS by a unit in the MOF is only defined by an internal provision. The laws also protect the confidentiality of the data and specify the obligatory character of data reporting. However, some decentralized entities and public corporations report data to the MOF with delays and the municipalities do not report data. Also, procedures for data sharing and coordination within the MOF and between the MOF and other data-producing agencies need to be improved. While there is some room to make more efficient use of the existing resources, these are clearly insufficient to compile comprehensive and timely fiscal data, especially if the MOF decides to migrate to the Government Finance Statistics Manual 2001(GFSM 2001). Also, regular procedures to consult with data users and to monitor the quality of the statistics need to be established. No official agency outside the MOF has access to data prior to publication, and there is no evidence of political influence on the selection of compilation methods or data output. However, the terms and conditions under which fiscal data are compiled are not made known to the public. The legislation provides clear guidelines on staff behavior and administrative procedures, which are made known to the staff.

• The Statistical Law of 1942 created the organizational structure of the official statistical services and identified the Directorate General of Statistics, Surveys, and Censuses (DGSSC) as the principal statistical agency, with the responsibility for coordinating and integrating all official statistical activities. The Law specifies the mandatory character of data reporting and the confidentiality of the data. However, the central role that the Law confers to the DGSSC has not been put into effect due to its lack of autonomy and the low priority given to statistical activities by the national authorities. The scarcity of resources is so severe that most censuses and surveys are mainly financed by international agencies. The DGSSC concentrates mainly on the production of basic demographic and social statistics and indicators. The DGSSC authorities are aware that it is necessary to organize a national statistical system that is technically and operationally sound and efficient, and produces and disseminates objective and timely information. Their efforts focus on the adoption of a new National Statistics Law establishing the National Statistical System (NSS) and creating the National Statistics Institute (NSI).¹

6. The methodologies for price indices and, to a lesser extent for monetary and balance of payments statistics, broadly follow international standards. However, there are important shortcomings in the methodological soundness of national accounts and government finance statistics. In general, there is room for improving the scope of all macroeconomic statistics. For example, the geographic coverage of the CPI and the coverage of economic activities in the PPI need to be expanded. For national accounts, the sequence of accounts for the total economy and the rest of the world account need to be compiled, and the scope of monetary statistics should be broadened significantly by including data for credit unions, a rather large and rapidly growing sector. The basis for recording national accounts, balance of payments, and GFS should be improved by, for example, fully adopting accrual accounting. Classification and sectorization systems, in general, do not follow rigorously international standards.

7. Accuracy and reliability elements are, for the most part, appropriately treated in the monetary statistics, but there is significant room for improvement in all other datasets. Source data are reasonably available for monetary statistics, but are not sufficiently developed for the national accounts, government finance, and balance of payments statistics. Despite recent improvements in data sources for national accounts, including the ongoing household survey, data for construction, a significant part of nonfinancial services, household consumption, and changes in inventories are insufficient. Also, the PPI basket is not fully representative of current national output. With the exception of data on budgetary operations, source data for fiscal statistics has limitations. Source data from customs and surveys are insufficient for the balance of payments. Validation of source data is adequate only for national accounts, monetary, and balance of payments statistics, while statistical techniques need to be improved for most datasets, in particular for national accounts. For example, the reference year for national accounts (1994) has become obsolete and there is excessive use of fixed intermediate consumption/output coefficients; CPI weights have not been updated during the past 13 years; sampling and nonsampling errors are not calculated and missing prices are not imputed in price statistics; and there is a need to monitor more closely the impact of informal activities. Except for prices and national accounts, the procedures for validating intermediate and final data are weak, and revision studies and analysis are mostly incipient in all statistical agencies.

8. Serviceability of the assessed macroeconomic statistics is broadly satisfactory, as confirmed by the results of a user survey conducted in the context of this assessment. With the exception of national accounts and GFS, data in all other assessed areas are compiled and disseminated with the periodicity and timeliness recommended by the GDDS. However, publicly available information does not permit the reconciliation of the statistics across sectors and there is some room to improve the consistency of data within each dataset and over time. Regular procedures and closer interagency coordination will be required to enhance the intersectoral consistency of macroeconomic statistics. While statistical agencies have well established revision policies and practices for most datasets, these are not communicated to the public. Preliminary and revised data are not always identified in all publications.

9. There are opportunities to improve accessibility of all official statistics, for example, by adopting advance release calendars and making the download of statistics from the official websites more user friendly. Metadata are adequate for most datasets, but the information posted on the DSBB for national accounts needs to be updated and the metadata for GFS need to be enhanced. The metadata posted on the IMF’s DSBB should be updated more regularly. Statistics are released simultaneously to all users, and unpublished nonconfidential data are made available upon request. Assistance to users could also be improved for most datasets, for example, by providing sector-specific contact information.

10. At the request of the authorities, Paraguay’s current data dissemination practices were also reviewed against the requirements of the Special Data Dissemination Standard (SDDS).² The following points about the coverage, periodicity, and timeliness prescriptions of the data dimension highlight some significant issues to be addressed prior to Paraguay’s subscription to the SDDS:

• In the real sector, (i) national accounts need to be compiled with quarterly periodicity and disseminated no more than three months after the end of the reference period; (ii) production indices need to be compiled with monthly periodicity and timeliness; (iii) labor statistics (employment, unemployment, and wages/earnings), currently compiled only on an annual basis and disseminated with a five-month lag, need to be compiled with quarterly periodicity and disseminated no more than three months after the end of the reference period.

• In the fiscal sector, (i) data on the operations of the consolidated general government needs to be compiled on an annual basis and disseminated within six months of the end of the reference period; (ii) data on consolidated central government operations needs to be compiled on a monthly basis and disseminated not later than one month after the end of the reference period; (iii) data on central government debt needs to be compiled on a quarterly basis and disseminated within three months of the end of the reference period. Currently, only data for the budgetary central government are compiled on a monthly basis and data on central government debt are compiled only on an annual basis.

• Most data categories in the financial sector meet the SDDS coverage, periodicity, and timeliness prescriptions. The only exception is the timeliness of data on the analytical accounts of the central bank, which are disseminated four weeks after the end of the reference period, instead of the two weeks required by the SDDS.

• In the external sector, most data categories also meet the coverage, periodicity, and timeliness requirements of the SDDS. The exceptions are the timeliness of (i) balance of payments statistics, currently six months vis-à-vis the required three months; (ii) data on official reserve assets, currently disseminated four weeks after the end of the reference month, against the one week required by the SDDS; and (iii) external debt data, currently disseminated with a lag of six months instead of the required three months. Furthermore, the CBP would need to compile the Template on International Reserves and Foreign Currency Liquidity with a monthly frequency and disseminate it not more than a month after the end of the reference period.

11. Appendix III in the accompanying document presents a more detailed description of Paraguay’s practices regarding coverage, periodicity, and timeliness of data compared to the SDDS. By developing and forcefully implementing an action plan, Paraguay should be able to meet most, if not all, of the remaining requirements for SDDS subscription within two to three years. A priority should be to advance the level of GDDS participation by updating and expanding the metadata on compilation and dissemination practices, as well as the plans for improvement, posted on the IMF’s Dissemination Standards Bulletin Board (DSBB).

II. Assessment byAgency and Dataset

12. Assessment of the quality of six macroeconomic datasets—national accounts, consumer price index, producer price index, government finance, monetary, and balance of payments statistics—were conducted using the DQAF July 2003. In this section, the results are presented at the level of the DQAF elements and using a four-point rating scale (Table 1). Assessments of the prerequisites of data quality and the assurances of integrity (Dimensions “0” and “1” of the DQAF) are presented in Tables 2a–c. For each dataset, the assessment of methodological soundness, accuracy and reliability, serviceability, and accessibility (Dimensions “2” to “5” of the DQAF) are shown in Tables 3a–f.

Table 1.

Paraguay: Data Quality Assessment Framework July 2003—Summary Results

Practice observed: current practices generally in observance meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies. Practice largely observed: some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. Practice largely not observed: significant departures and the authorities will need to take significant action to achieve observance. Practice not observed: most DQAF practices are not met. Not applicable: used only exceptionally when statistical practices do not apply to a country’s circumstances.

Table 1.

Paraguay: Data Quality Assessment Framework July 2003—Summary Results

Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO =Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable
Datasets		National Accounts	Consumer Price Index	Producer Price Index	Government Finance Statistics	Monetary Statistics	Balance of Payments Statistics
Dimensions/Elements
0. Prerequisites of quality
0.1 Legal and institutional environment		LO	O	O	LO	O	LO
0.2 Resources		LNO	LO	LO	LO	LO	LO
0.3 Relevance		LO	O	O	LNO	LO	LO
0.4 Other quality management		O	O	LO	LO	LO	LO
1. Assurances of integrity
1.1 Professionalism		O	O	O	O	O	O
1.2 Transparency		O	O	O	LO	O	O
1.3 Ethical standards		O	O	O	O	O	O
2. Methodological soundness
2.1 Concepts and definitions		O	O	O	LO	O	O
2.2 Scope		LO	LO	LO	LO	LNO	LO
2.3 Classification/sectorization		LO	O	O	LO	LO	LO
2.4 Basis for recording		LO	O	O	LO	O	LO
3. Accuracy and reliability
3.1 Source data		LO	O	LO	LO	O	LO
3.2 Assessment of source data		O	LO	LO	LNO	O	O
3.3 Statistical techniques		LNO	LNO	LNO	O	O	LO
3.4 Assessment and validation of intermediate data and statistical outputs		O	O	O	LO	LO	LO
3.5 Revision studies		LO	LO	LO	LO	LO	LO
4. Serviceability
4.1 Periodicity and timeliness		LO	O	O	LO	O	O
4.2 Consistency		LO	O	LO	LNO	LO	LO
4.3 Revision policy and practice		LO	O	LO	LO	LO	LO
5. Accessibility
5.1 Data accessibility		LO	LO	LO	LO	LO	LO
5.2 Metadata accessibility		LO	O	O	LO	O	O
5.3 Assistance to users		LO	LO	LO	O	LO	O

Practice observed: current practices generally in observance meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies. Practice largely observed: some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. Practice largely not observed: significant departures and the authorities will need to take significant action to achieve observance. Practice not observed: most DQAF practices are not met. Not applicable: used only exceptionally when statistical practices do not apply to a country’s circumstances.

View Table

Table 1.

Paraguay: Data Quality Assessment Framework July 2003—Summary Results

Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO =Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable
Datasets		National Accounts	Consumer Price Index	Producer Price Index	Government Finance Statistics	Monetary Statistics	Balance of Payments Statistics
Dimensions/Elements
0. Prerequisites of quality
0.1 Legal and institutional environment		LO	O	O	LO	O	LO
0.2 Resources		LNO	LO	LO	LO	LO	LO
0.3 Relevance		LO	O	O	LNO	LO	LO
0.4 Other quality management		O	O	LO	LO	LO	LO
1. Assurances of integrity
1.1 Professionalism		O	O	O	O	O	O
1.2 Transparency		O	O	O	LO	O	O
1.3 Ethical standards		O	O	O	O	O	O
2. Methodological soundness
2.1 Concepts and definitions		O	O	O	LO	O	O
2.2 Scope		LO	LO	LO	LO	LNO	LO
2.3 Classification/sectorization		LO	O	O	LO	LO	LO
2.4 Basis for recording		LO	O	O	LO	O	LO
3. Accuracy and reliability
3.1 Source data		LO	O	LO	LO	O	LO
3.2 Assessment of source data		O	LO	LO	LNO	O	O
3.3 Statistical techniques		LNO	LNO	LNO	O	O	LO
3.4 Assessment and validation of intermediate data and statistical outputs		O	O	O	LO	LO	LO
3.5 Revision studies		LO	LO	LO	LO	LO	LO
4. Serviceability
4.1 Periodicity and timeliness		LO	O	O	LO	O	O
4.2 Consistency		LO	O	LO	LNO	LO	LO
4.3 Revision policy and practice		LO	O	LO	LO	LO	LO
5. Accessibility
5.1 Data accessibility		LO	LO	LO	LO	LO	LO
5.2 Metadata accessibility		LO	O	O	LO	O	O
5.3 Assistance to users		LO	LO	LO	O	LO	O

Practice observed: current practices generally in observance meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies. Practice largely observed: some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. Practice largely not observed: significant departures and the authorities will need to take significant action to achieve observance. Practice not observed: most DQAF practices are not met. Not applicable: used only exceptionally when statistical practices do not apply to a country’s circumstances.

Table 2a.

Paraguay: Assessment of Data Quality—Dimensions 0 and 1—Central Bank of Paraguay

Table 2a.

Paraguay: Assessment of Data Quality—Dimensions 0 and 1—Central Bank of Paraguay

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment The compilation of statistics by the CBP is supported by the Law 489/95 (Central Bank of Paraguay Law), which includes: (i) provisions for mandatory data reporting by public and private entities to the CBP for performing its functions (Article 80); (ii) provisions governing the preparation and publication of monetary and financial data, external payments, domestic prices, output and income (Article 82); and (iii) provisions establishing the obligation to maintain the secrecy and confidentiality of the requested data (Articles 6, 7, and 8, as well as the CBP’s Information Security Regulations of 1997.) In cases of noncompliance, the law contemplates sanctions and fines for financial institutions and their managers (Articles 94, 95, and 96.) No penalties are foreseen for nonreporter units in the nonfinancial private sector, which affects in particular the quality of balance of payments and national accounts statistics. Resources The resources allocated to the compilation of macroeconomic statistics are minimally sufficient for undertaking ongoing tasks, with the exception of national accounts, where resources are insufficient. Also, resources are lacking for supporting important developmental work, such as the full adoption of the 1993 SNA, the conduct of surveys for the balance of payments, the compilation of quarterly national accounts, the improvement of source data and estimation techniques, and data quality verification and analysis. While work facilities are satisfactory, computer equipment and software need to be upgraded. Relevance The CBP maintains some informal contacts with users and promotes the participation of staff in international seminars and conferences. However, with the exception of price statistics, there are no formal mechanisms to consult with users to monitor the relevance of the statistics and to identify emerging data requirements. Other quality management CBP authorities are aware that continued efforts are needed to improve the quality of the statistics, as evidenced, for example, by their participation in the GDDS, the establishment of a unit (Coordination of Programs and Projects Unit) to coordinate the technical assistance and financial support provided in the framework of cooperation and donation programs, and the consideration of data quality issues in the planning process. However, in terms of resource allocation, the statistical functions are given low priority. More systematic data quality verification procedures need to be established, in particular for the PPI and monetary and BOP statistics.

Professionalism The CBP is a technical institution that has administrative autarky and normative autonomy. Technical criteria alone are applied by compilers and they are totally independent in their choice of data sources, methods, and data dissemination policies, within the limits of available resources. Processes and activities in the workplace promote a culture of professionalism. The CBP is authorized to comment, clarify and correct erroneous interpretations or misuse of statistics by users or by the media. Transparency The broad legal terms and conditions for compiling statistics are specified in the relevant laws, which are available to the public. Government officials outside the CBP have no access to the information until it is released to the general public. The CBP’s statistical products are clearly identified as such and advance notice is given of major changes in the conceptual framework, source data, and statistical techniques, such as the introduction of the new reference year for the national accounts and the adoption of the 1993 SNA. Ethical standards The Information Security Regulations, approved by the CBP Board in July 1997, establishes rules of conduct designed to minimize the risk of human error, theft, fraud, or misuse of information. The Regulations impose disciplinary sanctions against officials who fail to comply with these provisions. The Personnel Statute and its Regulation, approved by the CBP Board in September 1989 and February 1990, respectively, establish the rights and responsibilities of CBP staff, including the selection process, promotions, performance reviews, and confidentiality. Management reminds staff of these regulations periodically.

View Table

Table 2a.

Paraguay: Assessment of Data Quality—Dimensions 0 and 1—Central Bank of Paraguay

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment The compilation of statistics by the CBP is supported by the Law 489/95 (Central Bank of Paraguay Law), which includes: (i) provisions for mandatory data reporting by public and private entities to the CBP for performing its functions (Article 80); (ii) provisions governing the preparation and publication of monetary and financial data, external payments, domestic prices, output and income (Article 82); and (iii) provisions establishing the obligation to maintain the secrecy and confidentiality of the requested data (Articles 6, 7, and 8, as well as the CBP’s Information Security Regulations of 1997.) In cases of noncompliance, the law contemplates sanctions and fines for financial institutions and their managers (Articles 94, 95, and 96.) No penalties are foreseen for nonreporter units in the nonfinancial private sector, which affects in particular the quality of balance of payments and national accounts statistics. Resources The resources allocated to the compilation of macroeconomic statistics are minimally sufficient for undertaking ongoing tasks, with the exception of national accounts, where resources are insufficient. Also, resources are lacking for supporting important developmental work, such as the full adoption of the 1993 SNA, the conduct of surveys for the balance of payments, the compilation of quarterly national accounts, the improvement of source data and estimation techniques, and data quality verification and analysis. While work facilities are satisfactory, computer equipment and software need to be upgraded. Relevance The CBP maintains some informal contacts with users and promotes the participation of staff in international seminars and conferences. However, with the exception of price statistics, there are no formal mechanisms to consult with users to monitor the relevance of the statistics and to identify emerging data requirements. Other quality management CBP authorities are aware that continued efforts are needed to improve the quality of the statistics, as evidenced, for example, by their participation in the GDDS, the establishment of a unit (Coordination of Programs and Projects Unit) to coordinate the technical assistance and financial support provided in the framework of cooperation and donation programs, and the consideration of data quality issues in the planning process. However, in terms of resource allocation, the statistical functions are given low priority. More systematic data quality verification procedures need to be established, in particular for the PPI and monetary and BOP statistics.

Professionalism The CBP is a technical institution that has administrative autarky and normative autonomy. Technical criteria alone are applied by compilers and they are totally independent in their choice of data sources, methods, and data dissemination policies, within the limits of available resources. Processes and activities in the workplace promote a culture of professionalism. The CBP is authorized to comment, clarify and correct erroneous interpretations or misuse of statistics by users or by the media. Transparency The broad legal terms and conditions for compiling statistics are specified in the relevant laws, which are available to the public. Government officials outside the CBP have no access to the information until it is released to the general public. The CBP’s statistical products are clearly identified as such and advance notice is given of major changes in the conceptual framework, source data, and statistical techniques, such as the introduction of the new reference year for the national accounts and the adoption of the 1993 SNA. Ethical standards The Information Security Regulations, approved by the CBP Board in July 1997, establishes rules of conduct designed to minimize the risk of human error, theft, fraud, or misuse of information. The Regulations impose disciplinary sanctions against officials who fail to comply with these provisions. The Personnel Statute and its Regulation, approved by the CBP Board in September 1989 and February 1990, respectively, establish the rights and responsibilities of CBP staff, including the selection process, promotions, performance reviews, and confidentiality. Management reminds staff of these regulations periodically.

Table 2b.

Paraguay: Assessment of Data Quality—Dimensions 0 and 1—Ministry of Finance

Table 2b.

Paraguay: Assessment of Data Quality—Dimensions 0 and 1—Ministry of Finance

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment The MOF has a legal and institutional environment that supports its responsibility for the collection, compilation, and dissemination of government finance statistics (GFS), budget, and accounting data. This responsibility, except for GFS, is assigned to the MOF by law N° 1535 (Government Financial Administration Law) and its subsequent by laws. The responsibility for GFS collection, compilation, and dissemination is only clearly specified in an internal provision of the MOF. The MOF shares with the CBP the responsibility for compiling public debt data. However, mechanisms for data sharing and coordination within the MOF and between the MOF and other data-producing public entities need to be improved. The confidentiality of data reported to the MOF is protected by the Law on Civil Servants, and procedures are in place to prevent unauthorized data disclosure. The current legislation requires that each public entity (except for municipalities) submit to the MOF a report on budgetary and financial transactions. Penalties for noncompliance exist, but some decentralized entities and public corporations report data to the MOF with delays. Resources Additional and more qualified personnel, computing, and financing resources are needed to improve the GFS compilation and to perform new compilation tasks, especially if the MOF decides to migrate to the GFSM 2001. The Law on Civil Servants stipulates actions and policies to promote administrative efficiency. However, in practice, the MOF has not estimated the costs or carried out budgeting exercises associated to the compilation of GFS. Relevance The MOF has not undertaken research to help identify new and emerging data requirements. There are no surveys for obtaining feedback on the relevance and practical utility of fiscal data. Other quality management Efforts are made to compile and disseminate fiscal data with increased coverage of institutions, and improved timeliness and periodicity. However, while there are some monitoring mechanisms to promote data consistency, no formal processes to assess the quality of the GFS exist, nor medium term plans to improve data quality.

Professionalism Although there are no specific laws that establish the professional independence of GFS compilers, there is no evidence of political influence in the choice of data source, methods, or dissemination policies. Efforts are made to promote professionalism by sending staff to training courses abroad and contracting experts to provide on-the-job training. Transparency The MOF does not make available to the public the terms and conditions under which this institution collects, compiles, and disseminates GFS. No official agency outside the MOF has access to data prior to publication. The fiscal data compiled and disseminated on the MOF website are clearly identified as such. Advance notice is given to the public on some major changes in the methodology or other relevant changes that materially affect the GFS. Ethical standards Staff behavior is guided by Law N° 1626/00 and administrative procedures of the civil service, which are made known to the staff.

View Table

Table 2b.

Paraguay: Assessment of Data Quality—Dimensions 0 and 1—Ministry of Finance

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment The MOF has a legal and institutional environment that supports its responsibility for the collection, compilation, and dissemination of government finance statistics (GFS), budget, and accounting data. This responsibility, except for GFS, is assigned to the MOF by law N° 1535 (Government Financial Administration Law) and its subsequent by laws. The responsibility for GFS collection, compilation, and dissemination is only clearly specified in an internal provision of the MOF. The MOF shares with the CBP the responsibility for compiling public debt data. However, mechanisms for data sharing and coordination within the MOF and between the MOF and other data-producing public entities need to be improved. The confidentiality of data reported to the MOF is protected by the Law on Civil Servants, and procedures are in place to prevent unauthorized data disclosure. The current legislation requires that each public entity (except for municipalities) submit to the MOF a report on budgetary and financial transactions. Penalties for noncompliance exist, but some decentralized entities and public corporations report data to the MOF with delays. Resources Additional and more qualified personnel, computing, and financing resources are needed to improve the GFS compilation and to perform new compilation tasks, especially if the MOF decides to migrate to the GFSM 2001. The Law on Civil Servants stipulates actions and policies to promote administrative efficiency. However, in practice, the MOF has not estimated the costs or carried out budgeting exercises associated to the compilation of GFS. Relevance The MOF has not undertaken research to help identify new and emerging data requirements. There are no surveys for obtaining feedback on the relevance and practical utility of fiscal data. Other quality management Efforts are made to compile and disseminate fiscal data with increased coverage of institutions, and improved timeliness and periodicity. However, while there are some monitoring mechanisms to promote data consistency, no formal processes to assess the quality of the GFS exist, nor medium term plans to improve data quality.

Professionalism Although there are no specific laws that establish the professional independence of GFS compilers, there is no evidence of political influence in the choice of data source, methods, or dissemination policies. Efforts are made to promote professionalism by sending staff to training courses abroad and contracting experts to provide on-the-job training. Transparency The MOF does not make available to the public the terms and conditions under which this institution collects, compiles, and disseminates GFS. No official agency outside the MOF has access to data prior to publication. The fiscal data compiled and disseminated on the MOF website are clearly identified as such. Advance notice is given to the public on some major changes in the methodology or other relevant changes that materially affect the GFS. Ethical standards Staff behavior is guided by Law N° 1626/00 and administrative procedures of the civil service, which are made known to the staff.

Table 2c.

Paraguay: Assessment of Data Quality—Dimensions 0 and 1—Directorate General of Statistics, Surveys, and Censuses

Table 2c.

Paraguay: Assessment of Data Quality—Dimensions 0 and 1—Directorate General of Statistics, Surveys, and Censuses

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment Law 11126/42 establishes the organizational structure of the official statistical services, and identifies the DGSSC as the principal statistical agency, with the responsibility of coordinating and integrating the statistical activities of all government agencies. The DGSSC has a mandate to conduct national surveys and censuses, and to compile and publish a statistical yearbook and other statistical publications. The Law also establishes the obligation of public and private entities to provide the information requested by the DGSSC. The Law includes specific legal provisions establishing the obligation to maintain the secrecy and confidentiality of the information received. Decree 15415/70 establishes provisions for creating a national statistics commission, whose functions would include assigning responsibility for certain statistical information to particular statistical agencies. In practice, the role given by the statistical laws to the DGSSC has not been enforced, due to the weakness of the institutional and political support and the low priority given to the statistical functions by the national authorities. Furthermore, the legislation does not provide DGSSC with the required degree of autonomy. Resources Resources available are very limited (in terms of staff, computing resources, and financing) and not commensurate with the statistical program. The censuses and most important surveys carried out by the DGSSC are mainly financed by international agencies. Relevance The DGSSC concentrates mainly on the production of demographic and social basic statistics and indicators. Inter-institutional committees are established to analyze the questionnaires and other related aspects of some important statistical activities, such as censuses, households surveys, the 2002 industrial economic survey, and others. Other quality management The DGSSC authorities are aware that it is necessary to organize a national statistical system that will be technically and operationally sound and efficient, and will also produce and disseminate objective and timely information. Their efforts focus on the adoption of a new National Statistics Law establishing the National Statistical System (NSS) and creating the National Statistics Institute (NSI).

Professionalism No outside influences are brought to bear on the process of compiling the statistics. Technical criteria alone are applied in the compilation of national surveys, censuses, and publication of statistics. The compilers are independent in their choice of data sources and methods, within the limits of available resources. The DGSSC is authorized to comment, clarify, and correct erroneous interpretations or misuse of statistics by users or by the media. Transparency The terms and conditions under which statistics are collected, processed, and disseminated are available to the public. Disseminated data are identified as the product of the DGSSC. Government officials outside the DGSSC have no access to the information until it is released to the general public. Advance notice is given of major changes in the conceptual framework, source data, and statistical techniques. Ethical standards Staff behavior is guided by the Statute on Public Servants, which is well known to the DGSSC personnel. The regulation imposes disciplinary sanctions against officials who fail to comply with the provisions.

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Table 2c.

Paraguay: Assessment of Data Quality—Dimensions 0 and 1—Directorate General of Statistics, Surveys, and Censuses

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment Law 11126/42 establishes the organizational structure of the official statistical services, and identifies the DGSSC as the principal statistical agency, with the responsibility of coordinating and integrating the statistical activities of all government agencies. The DGSSC has a mandate to conduct national surveys and censuses, and to compile and publish a statistical yearbook and other statistical publications. The Law also establishes the obligation of public and private entities to provide the information requested by the DGSSC. The Law includes specific legal provisions establishing the obligation to maintain the secrecy and confidentiality of the information received. Decree 15415/70 establishes provisions for creating a national statistics commission, whose functions would include assigning responsibility for certain statistical information to particular statistical agencies. In practice, the role given by the statistical laws to the DGSSC has not been enforced, due to the weakness of the institutional and political support and the low priority given to the statistical functions by the national authorities. Furthermore, the legislation does not provide DGSSC with the required degree of autonomy. Resources Resources available are very limited (in terms of staff, computing resources, and financing) and not commensurate with the statistical program. The censuses and most important surveys carried out by the DGSSC are mainly financed by international agencies. Relevance The DGSSC concentrates mainly on the production of demographic and social basic statistics and indicators. Inter-institutional committees are established to analyze the questionnaires and other related aspects of some important statistical activities, such as censuses, households surveys, the 2002 industrial economic survey, and others. Other quality management The DGSSC authorities are aware that it is necessary to organize a national statistical system that will be technically and operationally sound and efficient, and will also produce and disseminate objective and timely information. Their efforts focus on the adoption of a new National Statistics Law establishing the National Statistical System (NSS) and creating the National Statistics Institute (NSI).

Professionalism No outside influences are brought to bear on the process of compiling the statistics. Technical criteria alone are applied in the compilation of national surveys, censuses, and publication of statistics. The compilers are independent in their choice of data sources and methods, within the limits of available resources. The DGSSC is authorized to comment, clarify, and correct erroneous interpretations or misuse of statistics by users or by the media. Transparency The terms and conditions under which statistics are collected, processed, and disseminated are available to the public. Disseminated data are identified as the product of the DGSSC. Government officials outside the DGSSC have no access to the information until it is released to the general public. Advance notice is given of major changes in the conceptual framework, source data, and statistical techniques. Ethical standards Staff behavior is guided by the Statute on Public Servants, which is well known to the DGSSC personnel. The regulation imposes disciplinary sanctions against officials who fail to comply with the provisions.

Table 3a.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—National Accounts

Table 3a.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—National Accounts

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The national accounts are compiled in broad accordance with the System of National Accounts 1993 (1993 SNA). Scope The CBP compiled Production and Generation of Income accounts for years 1991 to 2004, and GDP by expenditure and production approaches at current and constant 1994 prices and at current prices for income components. Supply and use tables for years 1991-1997 with 33 economic activities and 46 groups of products were also compiled. Production boundary is broadly in line with the 1993 SNA framework. However, two accounts that are part of the minimum requirements established by the Inter-Secretariat Working Group on National Accounts (ISWGNA) are not generated, although required inputs are available. Also, the national component of binational hydroelectrical enterprises is treated as nonresident. Quarterly accounts are not compiled. Institutional sector accounts will be compiled in a second stage of the 1993 SNA implementation process. Classification/sectorization National classifications of economic activities and products are linked through correspondence tables to the international ISIC Rev. 3 and CPC classifications. Neither COFOG nor COICOP are applied in the national accounts. Gross fixed capital formation classified by type of asset, but not by economic activity. Basis for recording Transactions are generally recorded on accrual basis. Exceptions are the recording of government’s and some of the rest of the world flows, which are recorded on a cash basis.	Source data Although a comprehensive data collection program for national accounts compilation is not in place, the supply of statistics has increased significantly in last years through the conduct of a Population Census, an Industrial Survey, annual Households Surveys, and a new comprehensive Households Survey. There is, also, better access to administrative sources. However, there is insufficient data for some industrial activities, a significant part of services, households consumption, and changes in inventories. Assessment of source data Accuracy of source data is assessed against available information when received and along the revision cycle of the accounts. Statistical techniques Some sound techniques are applied. However, due mainly to data scarcity, (i) the 1994 reference year is becoming obsolete; (ii) excessive use is made of fixed coefficients for value added and households consumption; (iii) changes in inventories are obtained as residuals; (iv) the importance of informal activities is not monitored; and (v) supply and use tables were compiled only until 1997. Although expenses of nonresidents in the economy are included in exports, they are not excluded from households final consumption. Assessment and validation of intermediate data and statistical outputs Intermediate data and outputs are assessed and validated against available information. Revision studies Analysis of revisions are carried out on an ad-hoc basis, and the results are used to inform the compilation process.	Periodicity and timeliness Periodicity of annual GDP meets GDDS recommendations, but not timeliness, because the data are disseminated with a 11-month lag. Consistency Internal and intertemporal consistent estimates are reached by obtaining some components as residuals, using SNA accounting relations. Discrepancies with GFS regarding the sectorization of employment insurance schemes exist. In national accounts, they are included in the financial sector, as recommended by 1993 SNA; however, in GFS they are included in the government sector. Revision policy and practice A schedule for the revision cycle has been prepared and followed, but not made known to the public. Preliminary data are clearly identified, but not revised data. The analysis of causes of differences between currently revised and preliminary data is not made public.	Data accessibility National accounts disseminated in a clear manner and with various levels of detail, easily accessed on the CBP website. A release timetable exists for internal use, but it is not made public. Data are made available to all users simultaneously. Nondisseminated statistics are provided upon request; however, this possibility has not been notified to the public. Metadata accessibility Metadata are disseminated with different levels of detail, through various publications, and also on the CBP website. GDDS metadata should be updated, as they still correspond to an outdated national accounts series. Assistance to users Users are offered a consultation service, but a specific contact point for national accounts is not provided. Assistance to users is not monitored. National accounts publications and a list of papers (some of them related to the national accounts) are available on the website and in the CBP’s library. Publications are free of charge.

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Table 3a.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—National Accounts

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The national accounts are compiled in broad accordance with the System of National Accounts 1993 (1993 SNA). Scope The CBP compiled Production and Generation of Income accounts for years 1991 to 2004, and GDP by expenditure and production approaches at current and constant 1994 prices and at current prices for income components. Supply and use tables for years 1991-1997 with 33 economic activities and 46 groups of products were also compiled. Production boundary is broadly in line with the 1993 SNA framework. However, two accounts that are part of the minimum requirements established by the Inter-Secretariat Working Group on National Accounts (ISWGNA) are not generated, although required inputs are available. Also, the national component of binational hydroelectrical enterprises is treated as nonresident. Quarterly accounts are not compiled. Institutional sector accounts will be compiled in a second stage of the 1993 SNA implementation process. Classification/sectorization National classifications of economic activities and products are linked through correspondence tables to the international ISIC Rev. 3 and CPC classifications. Neither COFOG nor COICOP are applied in the national accounts. Gross fixed capital formation classified by type of asset, but not by economic activity. Basis for recording Transactions are generally recorded on accrual basis. Exceptions are the recording of government’s and some of the rest of the world flows, which are recorded on a cash basis.	Source data Although a comprehensive data collection program for national accounts compilation is not in place, the supply of statistics has increased significantly in last years through the conduct of a Population Census, an Industrial Survey, annual Households Surveys, and a new comprehensive Households Survey. There is, also, better access to administrative sources. However, there is insufficient data for some industrial activities, a significant part of services, households consumption, and changes in inventories. Assessment of source data Accuracy of source data is assessed against available information when received and along the revision cycle of the accounts. Statistical techniques Some sound techniques are applied. However, due mainly to data scarcity, (i) the 1994 reference year is becoming obsolete; (ii) excessive use is made of fixed coefficients for value added and households consumption; (iii) changes in inventories are obtained as residuals; (iv) the importance of informal activities is not monitored; and (v) supply and use tables were compiled only until 1997. Although expenses of nonresidents in the economy are included in exports, they are not excluded from households final consumption. Assessment and validation of intermediate data and statistical outputs Intermediate data and outputs are assessed and validated against available information. Revision studies Analysis of revisions are carried out on an ad-hoc basis, and the results are used to inform the compilation process.	Periodicity and timeliness Periodicity of annual GDP meets GDDS recommendations, but not timeliness, because the data are disseminated with a 11-month lag. Consistency Internal and intertemporal consistent estimates are reached by obtaining some components as residuals, using SNA accounting relations. Discrepancies with GFS regarding the sectorization of employment insurance schemes exist. In national accounts, they are included in the financial sector, as recommended by 1993 SNA; however, in GFS they are included in the government sector. Revision policy and practice A schedule for the revision cycle has been prepared and followed, but not made known to the public. Preliminary data are clearly identified, but not revised data. The analysis of causes of differences between currently revised and preliminary data is not made public.	Data accessibility National accounts disseminated in a clear manner and with various levels of detail, easily accessed on the CBP website. A release timetable exists for internal use, but it is not made public. Data are made available to all users simultaneously. Nondisseminated statistics are provided upon request; however, this possibility has not been notified to the public. Metadata accessibility Metadata are disseminated with different levels of detail, through various publications, and also on the CBP website. GDDS metadata should be updated, as they still correspond to an outdated national accounts series. Assistance to users Users are offered a consultation service, but a specific contact point for national accounts is not provided. Assistance to users is not monitored. National accounts publications and a list of papers (some of them related to the national accounts) are available on the website and in the CBP’s library. Publications are free of charge.

Table 3b.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Consumer Price Index

Table 3b.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Consumer Price Index

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The CPI follows the 1968 SNA household consumption concept and uses sufficiently detailed expenditure data from the 1990/1991 Household Budget Survey (income and expenditure). There is an adequate level of detail for both goods and services. Scope The CPI is calculated for the metropolitan area of the capital. The CPI weights are representative only of consumption by urban households. Goods and services produced for own consumption by households, gifts in–kind received, social benefits, imputed rentals of owner-occupied dwellings, and purchases of new vehicles are missing from the CPI. The share of consumption expenditure not covered by the index is 24 percent. Classification/sectorization The CPI basket of goods and services are classified using an adaptation of the classification of consumption expenditure of households by purpose, in accordance with the 1968 SNA. The index is calculated for seven principal groups of products. Basis for recording The prices used correspond to market prices paid by households at the different points of sale at which transactions are conducted, and are inclusive of all taxes on goods and services, which is the international standard.	Source data The III Households Budget Survey(1990/1991) was used for the CPI weights, and some 6,000 monthly prices from 293 products (goods and services) are collected in direct interviews at different points of sale, representing the places where consumers do their purchases. Assessment of source data Data are checked for logical consistency using manual and automated editing methods, including routine checks for extreme values. In some cases, the informants are consulted again. Sampling and nonsampling errors are not calculated. Statistical techniques CPI uses the modified Laspeyres formula. Missing prices are not imputed, affecting comparability of elementary prices. Weights have not been updated in the last 13 years. Response rates to price surveys and editing rates are not calculated. A new household income and expenditure survey is being undertaken in 2005-2006. Assessment and validation of intermediate data and statistical outputs The CPI is subject to validation with respect to primary data from individual price observations and to the different levels of aggregation. Revision studies Data are disseminated as final. Periodic weight revisions are not undertaken to determine the bias of the CPI.	Periodicity and timeliness Periodicity and timeliness meet GDDS recommendations. The index is released on the last day of the month. Consistency The CPI is consistent over time. Also, the all-items index tabulations are consistent with the aggregations made by category of expenditure. Revision policy and practice The monthly CPI is not revised; data are final when released.	Data accessibility The CPI data are disseminated through press releases and also posted on the CBP website. Detailed tables contain indices, by main group, and percentage changes at different levels of aggregation. An analysis of the major price changes is included. There is an internal calendar for the dissemination of the CPI, which is well known to the public. Metadata accessibility Methodologies on the CPI and the III Household Budget Survey (1990/1991) are available to users in the CBP’s publication, Indice de Precios – Metodología. Assistance to users Only a general contact point at the CBP is provided. The Domestic Market Division provides assistance to users by responding to queries and providing photocopies and printouts of tables, at the request of public and private institutions and individuals. The data are also available to the public at the CBP’s library.

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Table 3b.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Consumer Price Index

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The CPI follows the 1968 SNA household consumption concept and uses sufficiently detailed expenditure data from the 1990/1991 Household Budget Survey (income and expenditure). There is an adequate level of detail for both goods and services. Scope The CPI is calculated for the metropolitan area of the capital. The CPI weights are representative only of consumption by urban households. Goods and services produced for own consumption by households, gifts in–kind received, social benefits, imputed rentals of owner-occupied dwellings, and purchases of new vehicles are missing from the CPI. The share of consumption expenditure not covered by the index is 24 percent. Classification/sectorization The CPI basket of goods and services are classified using an adaptation of the classification of consumption expenditure of households by purpose, in accordance with the 1968 SNA. The index is calculated for seven principal groups of products. Basis for recording The prices used correspond to market prices paid by households at the different points of sale at which transactions are conducted, and are inclusive of all taxes on goods and services, which is the international standard.	Source data The III Households Budget Survey(1990/1991) was used for the CPI weights, and some 6,000 monthly prices from 293 products (goods and services) are collected in direct interviews at different points of sale, representing the places where consumers do their purchases. Assessment of source data Data are checked for logical consistency using manual and automated editing methods, including routine checks for extreme values. In some cases, the informants are consulted again. Sampling and nonsampling errors are not calculated. Statistical techniques CPI uses the modified Laspeyres formula. Missing prices are not imputed, affecting comparability of elementary prices. Weights have not been updated in the last 13 years. Response rates to price surveys and editing rates are not calculated. A new household income and expenditure survey is being undertaken in 2005-2006. Assessment and validation of intermediate data and statistical outputs The CPI is subject to validation with respect to primary data from individual price observations and to the different levels of aggregation. Revision studies Data are disseminated as final. Periodic weight revisions are not undertaken to determine the bias of the CPI.	Periodicity and timeliness Periodicity and timeliness meet GDDS recommendations. The index is released on the last day of the month. Consistency The CPI is consistent over time. Also, the all-items index tabulations are consistent with the aggregations made by category of expenditure. Revision policy and practice The monthly CPI is not revised; data are final when released.	Data accessibility The CPI data are disseminated through press releases and also posted on the CBP website. Detailed tables contain indices, by main group, and percentage changes at different levels of aggregation. An analysis of the major price changes is included. There is an internal calendar for the dissemination of the CPI, which is well known to the public. Metadata accessibility Methodologies on the CPI and the III Household Budget Survey (1990/1991) are available to users in the CBP’s publication, Indice de Precios – Metodología. Assistance to users Only a general contact point at the CBP is provided. The Domestic Market Division provides assistance to users by responding to queries and providing photocopies and printouts of tables, at the request of public and private institutions and individuals. The data are also available to the public at the CBP’s library.

Table 3c.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Producer Price Index

Table 3c.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Producer Price Index

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The PPI weights of domestic goods are based on the value of gross output, excluding intermediate inputs. The weights of imported goods correspond to the concept of the supply of goods in the domestic market, which is consistent with international standards. Scope The PPI includes producer prices for domestic goods (agriculture, forestry, mining and quarrying, and manufacturing), and import prices for goods produced by the same industries, with the exception of agriculture and forestry. Electricity, water, gas, and services prices are missing from the PPI. The share of goods output by economic activity not covered by the index is 11.6 percent. Classification/sectorization The product classification corresponds to the UN’s Central Product Classification (CPC). The International Standard Industrial Classification of All Economic Activities (ISIC rev.2) is used for classifying domestic goodsproducing establishments. The index is disaggregated by individual items, subgroup, group, section, and class. Basis for recording The prices of domestic goods are market prices, excluding the value added tax. Import prices correspond to the market prices at which goods are sold by importers, and include all import taxes, except the value added tax, which is consistent with international standards.	Source data The principal sources for constructing PPI baskets were: the Agricultural Census 1991, the National Forestry Census 1992, and the Industrial Census 1962, supplemented by a limited census of member firms (1994). The PPI basket (150 items) is still not fully representative of current national output Monthly prices are collected through direct interviews to principal producers of the products in the basket. Assessment of source data The data are checked for logical consistency using manual and automated editing methods, including routine checks for extreme values. Sampling and nonsampling errors are not calculated. Statistical techniques PPI uses the modified Laspeyres formula. Missing prices are not imputed, affecting comparability of elementary prices. No new products are introduced. Weights have not been updated in the last 10 years. Assessment and validation of intermediate data and statistical outputs The PPI is subject to validation with respect to both primary data from individual price observations and to the different levels of aggregation. Revision studies Data are disseminated as final. Revision studies and analyses are not conducted.	Periodicity and timeliness Periodicity and timeliness meet GDDS recommendations. The PPI is published in the last week after the end of the reference month. Consistency The latest methodological change in the PPI compilation was introduced in 1995. Price statistics are consistent over time, and all-items index tabulations are consistent with the different aggregations. A chained index between old and new series is not available. Revision policy and practice There is no regular program for updating the PPI; data are final when released. The results of weights change for the PPI are published.	Data accessibility The PPI data are disseminated through press releases and also posted on the CBP website. Detailed tables contain indices, by seven groups of local products and four groups of imported products. An analysis of the major price changes is included in the CBP’s monthly Informe Económico. There is an internal schedule, which is well known to the public. Metadata accessibility Methodologies on the PPI are available to users in the CBP publication, Indice de Precios: Metodologías, Volumen Uno, Mercado Interno. This document is available to the general public and can be requested from the DMD. Assistance to users Only a general contact point at the BCP is provided. The DMD provides assistance to users by responding to queries and providing photocopies and printouts of tables upon request. The data are also available to the public at the CBP’s library.

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Table 3c.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Producer Price Index

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The PPI weights of domestic goods are based on the value of gross output, excluding intermediate inputs. The weights of imported goods correspond to the concept of the supply of goods in the domestic market, which is consistent with international standards. Scope The PPI includes producer prices for domestic goods (agriculture, forestry, mining and quarrying, and manufacturing), and import prices for goods produced by the same industries, with the exception of agriculture and forestry. Electricity, water, gas, and services prices are missing from the PPI. The share of goods output by economic activity not covered by the index is 11.6 percent. Classification/sectorization The product classification corresponds to the UN’s Central Product Classification (CPC). The International Standard Industrial Classification of All Economic Activities (ISIC rev.2) is used for classifying domestic goodsproducing establishments. The index is disaggregated by individual items, subgroup, group, section, and class. Basis for recording The prices of domestic goods are market prices, excluding the value added tax. Import prices correspond to the market prices at which goods are sold by importers, and include all import taxes, except the value added tax, which is consistent with international standards.	Source data The principal sources for constructing PPI baskets were: the Agricultural Census 1991, the National Forestry Census 1992, and the Industrial Census 1962, supplemented by a limited census of member firms (1994). The PPI basket (150 items) is still not fully representative of current national output Monthly prices are collected through direct interviews to principal producers of the products in the basket. Assessment of source data The data are checked for logical consistency using manual and automated editing methods, including routine checks for extreme values. Sampling and nonsampling errors are not calculated. Statistical techniques PPI uses the modified Laspeyres formula. Missing prices are not imputed, affecting comparability of elementary prices. No new products are introduced. Weights have not been updated in the last 10 years. Assessment and validation of intermediate data and statistical outputs The PPI is subject to validation with respect to both primary data from individual price observations and to the different levels of aggregation. Revision studies Data are disseminated as final. Revision studies and analyses are not conducted.	Periodicity and timeliness Periodicity and timeliness meet GDDS recommendations. The PPI is published in the last week after the end of the reference month. Consistency The latest methodological change in the PPI compilation was introduced in 1995. Price statistics are consistent over time, and all-items index tabulations are consistent with the different aggregations. A chained index between old and new series is not available. Revision policy and practice There is no regular program for updating the PPI; data are final when released. The results of weights change for the PPI are published.	Data accessibility The PPI data are disseminated through press releases and also posted on the CBP website. Detailed tables contain indices, by seven groups of local products and four groups of imported products. An analysis of the major price changes is included in the CBP’s monthly Informe Económico. There is an internal schedule, which is well known to the public. Metadata accessibility Methodologies on the PPI are available to users in the CBP publication, Indice de Precios: Metodologías, Volumen Uno, Mercado Interno. This document is available to the general public and can be requested from the DMD. Assistance to users Only a general contact point at the BCP is provided. The DMD provides assistance to users by responding to queries and providing photocopies and printouts of tables upon request. The data are also available to the public at the CBP’s library.

Table 3d.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Government Finance Statistics

Table 3d.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Government Finance Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions Broadly consistent with the recommendations of A Manual on Government Finance Statistics 1986 (GFSM 1986). The authorities have not yet prepared a plan to migrate to the Government Finance Statistics Manual 2001 (GFSM 2001). Scope Data on the operations of the local governments are not included in GFS. Classification/sectorization Sectorization is not consistent with the international recommendations because consolidated data for the central government are not compiled, and some financial institutions are included in the nonfinancial public sector. Classification is broadly in accordance with the GFSM 1986, except for financing and debt. The functional classification of expenditures is not compiled. Basis for recording GFS are compiled using different bases of recording: revenues are recorded on a cash basis, expenditures are recorded on an accrual proxy basis, and financing is on a payment date basis for debt service and creditor’s disbursement date basis for disbursement. Most transactions are shown on a gross basis, in line with the GFSM 1986.	Source data Data for all public sector units, except for local governments and two nonfinancial public corporations, are obtained from a comprehensive data collection program. These data sources are recorded in the Integrated Financial Management System (IFMS) and its subsystems. The IFMS classification is broadly in line with the GFSM 1986. More automation of the reporting systems is needed. The timeliness of source data for some extra budgetary and nonfinancial public corporations operations needs to be improved. Assessment of source data Source data are not assessed to avoid or monitor response errors or misreported data. The results of data assessment in the IFMS are not monitored to guide statistical planning. Statistical techniques GFS compilation is strictly based on comprehensive administrative records. Assessment and validation of intermediate data and statistical outputs Some validation procedures are in place. However, intermediate results for financing and debt are not validated against other information, and statistical discrepancies in intermediate data are not assessed nor investigated. Revision studies Revisions are conducted, but studies are not carried out.	Periodicity and timeliness Only central administration operations and central government debt are disseminated following GDDS recommendations for periodicity and timeliness. Consistency Overall deficit/surplus and financing are not consistent owing to a number of factors. The GFS are not reconciled with the national accounts, balance of payments, and monetary statistics. Revision policy and practice The first published annual GFS data are preliminary, and final data are published following revisions. Preliminary and final data are adequately noted in the publications. Some assessments are performed to the data, but they are not made public.	Data accessibility The disseminated GFS permit identification and comparison of major aggregates of flows and stocks, detailed underlying data and time series are presented. GFS are not disseminated according to a preannounced schedule. Metadata accessibility GFS metadata are only available on the DSBB, with an electronic link to this information posted in the MOF website. Assistance to users Contact information and a list of publications is provided in the MOF website.

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Table 3d.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Government Finance Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions Broadly consistent with the recommendations of A Manual on Government Finance Statistics 1986 (GFSM 1986). The authorities have not yet prepared a plan to migrate to the Government Finance Statistics Manual 2001 (GFSM 2001). Scope Data on the operations of the local governments are not included in GFS. Classification/sectorization Sectorization is not consistent with the international recommendations because consolidated data for the central government are not compiled, and some financial institutions are included in the nonfinancial public sector. Classification is broadly in accordance with the GFSM 1986, except for financing and debt. The functional classification of expenditures is not compiled. Basis for recording GFS are compiled using different bases of recording: revenues are recorded on a cash basis, expenditures are recorded on an accrual proxy basis, and financing is on a payment date basis for debt service and creditor’s disbursement date basis for disbursement. Most transactions are shown on a gross basis, in line with the GFSM 1986.	Source data Data for all public sector units, except for local governments and two nonfinancial public corporations, are obtained from a comprehensive data collection program. These data sources are recorded in the Integrated Financial Management System (IFMS) and its subsystems. The IFMS classification is broadly in line with the GFSM 1986. More automation of the reporting systems is needed. The timeliness of source data for some extra budgetary and nonfinancial public corporations operations needs to be improved. Assessment of source data Source data are not assessed to avoid or monitor response errors or misreported data. The results of data assessment in the IFMS are not monitored to guide statistical planning. Statistical techniques GFS compilation is strictly based on comprehensive administrative records. Assessment and validation of intermediate data and statistical outputs Some validation procedures are in place. However, intermediate results for financing and debt are not validated against other information, and statistical discrepancies in intermediate data are not assessed nor investigated. Revision studies Revisions are conducted, but studies are not carried out.	Periodicity and timeliness Only central administration operations and central government debt are disseminated following GDDS recommendations for periodicity and timeliness. Consistency Overall deficit/surplus and financing are not consistent owing to a number of factors. The GFS are not reconciled with the national accounts, balance of payments, and monetary statistics. Revision policy and practice The first published annual GFS data are preliminary, and final data are published following revisions. Preliminary and final data are adequately noted in the publications. Some assessments are performed to the data, but they are not made public.	Data accessibility The disseminated GFS permit identification and comparison of major aggregates of flows and stocks, detailed underlying data and time series are presented. GFS are not disseminated according to a preannounced schedule. Metadata accessibility GFS metadata are only available on the DSBB, with an electronic link to this information posted in the MOF website. Assistance to users Contact information and a list of publications is provided in the MOF website.

Table 3e.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Monetary Statistics

Table 3e.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Monetary Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions Paraguay’s monetary statistics are broadly consistent with the methodology of the Monetary and Financial Statistics Manual (MFSM). Scope The depository corporations survey covers the CBP, the 13 commercial banks, and the 14 finance companies operating at end-2005. Credit cooperatives, which are growing rapidly and whose assets and liabilities account for more that 20 percent of assets and liabilities of the banking sector, are not included in the depository corporations survey (DCS). The accounts of banks in liquidation are also excluded. Classification/sectorization The classification and sectorization of financial instruments follow the MFSM, with three exceptions: i) no breakdown between other nonfinancial corporations and households, ii) classification of the national component of two binational entities as nonresidents, and iii) nonsectorization of accrued interest by ODCs. Basis for recording The DC survey is produced on an accrual basis, which is consistent with the MFSM. Financial instruments are recorded at market value, with the exception of some government bonds, which are valued at amortized cost because they are held to maturity.	Source data The DCS is based on the consolidated balance sheets of the CBP, commercial banks, and finance companies. ODCs report to the Bank Superintendence (BS) of the CBP, which transmits a hardcopy of the aggregated data to the Monetary Studies Division (MSD). Assessment of source data The reporting system is based on a common chart of accounts introduced in 1995, which follows international accounting standards. Statistical techniques Sound statistical techniques are used. Monetary data are based strictly on the balance sheets of the CBP and ODCs. Assessment and validation of intermediate data and statistical outputs Verifications are performed when inconsistencies are observed. The MSD does not check the consistency of the interbank position, nor of the domestic public debt. Consistency checks performed for international reserves and foreign assets and liabilities against balance of payments data. Revision studies The CBP does not have a policy of regular revision studies to monitor monetary statistics. Improvements have been introduced in response to requests by users.	Periodicity and timeliness Monthly monetary statistics meet the GDDS recommendations. Consistency Monetary and financial data published by the CBP are released in consistent historical series. Data reported by ODCs are consistent with CBP’s accounting records. Monetary data are consistent with balance of payments data and with the CBP’s debt registry data. Discrepancies exist between monetary and fiscal data. Revision policy and practice The CBP does not have a regular revision schedule, because data are released as final. Revisions are infrequent and noted with the disseminated data.	Data accessibility Data are presented in an aggregated form with detailed explanatory notes. There are no preannounced release schedules, but monetary data are regularly posted on the CBP’s website by the 25th day of the month following the reference month. Metadata accessibility Paraguay has posted comprehensive monetary metadata on the DSBB, which is referred to and hyperlinked on the CBP website. Methodological notes accompany the tables published in Informe Económico. Assistance to users Contact information specifically for monetary statistics is not available on the CBP website. As a service to users, time series are available on the CBP website in Excel format, although they need to be updated. Upon request, the MSD copies data onto CDs. A free-ofcharge subscription service informs users when the latest data become available, with a link to download them.

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Table 3e.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Monetary Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions Paraguay’s monetary statistics are broadly consistent with the methodology of the Monetary and Financial Statistics Manual (MFSM). Scope The depository corporations survey covers the CBP, the 13 commercial banks, and the 14 finance companies operating at end-2005. Credit cooperatives, which are growing rapidly and whose assets and liabilities account for more that 20 percent of assets and liabilities of the banking sector, are not included in the depository corporations survey (DCS). The accounts of banks in liquidation are also excluded. Classification/sectorization The classification and sectorization of financial instruments follow the MFSM, with three exceptions: i) no breakdown between other nonfinancial corporations and households, ii) classification of the national component of two binational entities as nonresidents, and iii) nonsectorization of accrued interest by ODCs. Basis for recording The DC survey is produced on an accrual basis, which is consistent with the MFSM. Financial instruments are recorded at market value, with the exception of some government bonds, which are valued at amortized cost because they are held to maturity.	Source data The DCS is based on the consolidated balance sheets of the CBP, commercial banks, and finance companies. ODCs report to the Bank Superintendence (BS) of the CBP, which transmits a hardcopy of the aggregated data to the Monetary Studies Division (MSD). Assessment of source data The reporting system is based on a common chart of accounts introduced in 1995, which follows international accounting standards. Statistical techniques Sound statistical techniques are used. Monetary data are based strictly on the balance sheets of the CBP and ODCs. Assessment and validation of intermediate data and statistical outputs Verifications are performed when inconsistencies are observed. The MSD does not check the consistency of the interbank position, nor of the domestic public debt. Consistency checks performed for international reserves and foreign assets and liabilities against balance of payments data. Revision studies The CBP does not have a policy of regular revision studies to monitor monetary statistics. Improvements have been introduced in response to requests by users.	Periodicity and timeliness Monthly monetary statistics meet the GDDS recommendations. Consistency Monetary and financial data published by the CBP are released in consistent historical series. Data reported by ODCs are consistent with CBP’s accounting records. Monetary data are consistent with balance of payments data and with the CBP’s debt registry data. Discrepancies exist between monetary and fiscal data. Revision policy and practice The CBP does not have a regular revision schedule, because data are released as final. Revisions are infrequent and noted with the disseminated data.	Data accessibility Data are presented in an aggregated form with detailed explanatory notes. There are no preannounced release schedules, but monetary data are regularly posted on the CBP’s website by the 25th day of the month following the reference month. Metadata accessibility Paraguay has posted comprehensive monetary metadata on the DSBB, which is referred to and hyperlinked on the CBP website. Methodological notes accompany the tables published in Informe Económico. Assistance to users Contact information specifically for monetary statistics is not available on the CBP website. As a service to users, time series are available on the CBP website in Excel format, although they need to be updated. Upon request, the MSD copies data onto CDs. A free-ofcharge subscription service informs users when the latest data become available, with a link to download them.

Table 3f.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Balance of Payments Statistics

Table 3f.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Balance of Payments Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions Paraguay’s BOP statistics broadly follow the guidelines of the fifth edition of the Balance of Payments Manual (BPM5). Resident units are defined in broad conformity with BPM5. Binational hydroelectrical enterprises treated as nonresidents. Scope The scope of Paraguay’s BOP is broadly consistent with the BPM5. Estimates are made for unrecorded foreign trade, workers’ remittances, profits, and private deposits abroad. Data on some services, direct and portfolio investment abroad, and real estate (of relatively minor importance) are not available. Classification/sectorization Classification and sectorization systems are broadly in line with BPM5, with few exceptions, such as the treatment of goods for processing. Basis for recording Data are mostly valued at market prices. Two main departures from accrual basis: interest on public sector debt and on official reserve assets. Some services (e.g., telecommunication) are recorded on a net basis	Source data Obtained from data collection programs that are broadly adequate. However, source data from customs and surveys are insufficient. The main data sources include administrative records, surveys, and direct reports from nonfinancial enterprises. Source data are timely, except for data from surveys. Assessment of source data Data are routinely checked and analyzed. Statistical techniques Estimates of unrecorded trade, travel, transport, other services, grants, and workers’ remittances are made. Some indicators and statistical techniques need to be updated/reviewed. Assessment and validation of intermediate data and statistical outputs Survey data are regularly validated against balance sheets of the nonfinancial private enterprises received from the MOF. The item errors and omissions is monitored. Bilateral data reconciliation with partner countries and international agencies are not conducted (except for goods trade data within MERCOSUR). Revision studies Revisions inform statistical processes but formal studies are not conducted.	Periodicity and timeliness Quarterly periodicity of the balance of payments (BOP) and the international investment position (IIP) meets international standards. Timeliness of BOP and IIP data meets GDDS recommendations. Consistency BOP and IIP data are consistent. A reconciliation table (transactions and other changes) is disseminated regularly. Consistent series are available since 1995. The item net errors and omissions is relatively unstable over time, and sizeable in some years. During 1998-2004, they are larger than in other MERCOSUR countries (as a percentage of GDP, goods trade, and current account). BOP statistics are consistent or reconcilable with merchandise trade, monetary statistics, national accounts, and external debt data. There are differences with GFS, whose concepts, scope, classification, and recording basis are not consistent with BPM5 guidelines. Revision policy and practice The revision cycle is predetermined (data are preliminary for the new quarter and for the previous seven quarters) but this revisions policy is not made public.	Data accessibility Detailed data are disseminated on the CBP website and in hardcopy publications. Formats are fully in line with BPM5 components; however, additional summary tables are needed. Data are disseminated in a clear manner, but neither charts nor commentaries are prepared to facilitate analysis. Data are disseminated in annexes of CBP documents (pdf format). Electronic tables/databases are not available. The CBP webpage does not provide time series of sufficient length. Data are released to all users at the same time, but there is no preannounced schedule. Metadata accessibility Concepts, methodology, and data sources for balance of payments compilation are available on the CBP website, as well as on the IMF’s DSBB, and other IMF balance of payments publications. Assistance to users Publications on BOP data (including quarterly specialized reports on external debt and direct investment) provide contact points for BOP, external debt, and direct investment, respectively. Contact information is also provided on the DSBB.

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Table 3f.

Paraguay: Assessment of Data Quality—Dimensions 2 to 5—Balance of Payments Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions Paraguay’s BOP statistics broadly follow the guidelines of the fifth edition of the Balance of Payments Manual (BPM5). Resident units are defined in broad conformity with BPM5. Binational hydroelectrical enterprises treated as nonresidents. Scope The scope of Paraguay’s BOP is broadly consistent with the BPM5. Estimates are made for unrecorded foreign trade, workers’ remittances, profits, and private deposits abroad. Data on some services, direct and portfolio investment abroad, and real estate (of relatively minor importance) are not available. Classification/sectorization Classification and sectorization systems are broadly in line with BPM5, with few exceptions, such as the treatment of goods for processing. Basis for recording Data are mostly valued at market prices. Two main departures from accrual basis: interest on public sector debt and on official reserve assets. Some services (e.g., telecommunication) are recorded on a net basis	Source data Obtained from data collection programs that are broadly adequate. However, source data from customs and surveys are insufficient. The main data sources include administrative records, surveys, and direct reports from nonfinancial enterprises. Source data are timely, except for data from surveys. Assessment of source data Data are routinely checked and analyzed. Statistical techniques Estimates of unrecorded trade, travel, transport, other services, grants, and workers’ remittances are made. Some indicators and statistical techniques need to be updated/reviewed. Assessment and validation of intermediate data and statistical outputs Survey data are regularly validated against balance sheets of the nonfinancial private enterprises received from the MOF. The item errors and omissions is monitored. Bilateral data reconciliation with partner countries and international agencies are not conducted (except for goods trade data within MERCOSUR). Revision studies Revisions inform statistical processes but formal studies are not conducted.	Periodicity and timeliness Quarterly periodicity of the balance of payments (BOP) and the international investment position (IIP) meets international standards. Timeliness of BOP and IIP data meets GDDS recommendations. Consistency BOP and IIP data are consistent. A reconciliation table (transactions and other changes) is disseminated regularly. Consistent series are available since 1995. The item net errors and omissions is relatively unstable over time, and sizeable in some years. During 1998-2004, they are larger than in other MERCOSUR countries (as a percentage of GDP, goods trade, and current account). BOP statistics are consistent or reconcilable with merchandise trade, monetary statistics, national accounts, and external debt data. There are differences with GFS, whose concepts, scope, classification, and recording basis are not consistent with BPM5 guidelines. Revision policy and practice The revision cycle is predetermined (data are preliminary for the new quarter and for the previous seven quarters) but this revisions policy is not made public.	Data accessibility Detailed data are disseminated on the CBP website and in hardcopy publications. Formats are fully in line with BPM5 components; however, additional summary tables are needed. Data are disseminated in a clear manner, but neither charts nor commentaries are prepared to facilitate analysis. Data are disseminated in annexes of CBP documents (pdf format). Electronic tables/databases are not available. The CBP webpage does not provide time series of sufficient length. Data are released to all users at the same time, but there is no preannounced schedule. Metadata accessibility Concepts, methodology, and data sources for balance of payments compilation are available on the CBP website, as well as on the IMF’s DSBB, and other IMF balance of payments publications. Assistance to users Publications on BOP data (including quarterly specialized reports on external debt and direct investment) provide contact points for BOP, external debt, and direct investment, respectively. Contact information is also provided on the DSBB.

13. In order to complement the Fund’s assessment of the quality of official statistics produced by Paraguay, the mission conducted an informal survey of key users of macroeconomic statistics. Questionnaires were sent to a broad range of users who were asked to evaluate the coverage, periodicity, timeliness, dissemination practices, accessibility, and overall quality of the official statistics. Half of the 80 targeted users submitted responses.

14. On a five point scale (1 = poor and 5 = excellent), the average rating for the overall quality of official statistics for all sectors was 3.0. A majority of the respondents felt that the statistics were reliable, expressed satisfaction with their methodological soundness, and believed that Paraguay’s statistics were comparable to statistics disseminated by neighboring countries. Respondents also indicated that they were generally satisfied with the level of coverage and detail as well as the periodicity. However, most felt that timeliness needed to be improved and advance release calendars made public.

15. Several respondents suggested that the range of economic statistics be expanded by compiling, for example, short-term indicators of economic activity and statistics on tourism. Also, it was suggested that economic censuses be conducted on a more frequent basis, while others expressed the desirability of having more frequent data on labor statistics and a CPI with broader coverage.

16. A more detailed analysis of the Users’ Survey and the tabulated results are included in Appendix V of the accompanying document Detailed Assessments Using the Data Quality Assessment Framework (DQAF).

III. Staff’s Recommendations

Based on the review of Paraguay’s statistical practices, discussions with the data producing agencies, and responses from data users (see Appendix V of the Detailed Assessments volume), the mission presents a set of recommendations. They are designed to further increase Paraguay’s adherence to internationally accepted statistical practices and would, in the mission’s view, enhance the analytical usefulness of Paraguay’s statistics. The recommendations are subdivided into “High priority” and “Other key recommendations.” While all the high priority actions listed below should be treated as such, the cross-cutting recommendations need to be addressed with the greatest priority. More detailed technical suggestions are included in the Detailed Assessments volume for each dataset.