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National Income Accounting

National Income Accounting. Dr. Kishor Bhanushali. National Income Estimation. Economic performance Economic analysis Forecasting Indicator of Nation’s Economy As a means of indicating changes in a country’s standard of living To indicate changes in economic growth of a country

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National Income Accounting

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  1. National Income Accounting Dr. KishorBhanushali

  2. National Income Estimation Economic performance Economic analysis Forecasting Indicator of Nation’s Economy As a means of indicating changes in a country’s standard of living To indicate changes in economic growth of a country As a means of comparing the economic performance of different countries

  3. World Bank 2005 Up to US $ 875 = Low income countries US $ 876 – US $ 3465 = Lower Middle US $ 3466 – US $ 10725 = Upper Middle More than US $ 10726 = high income

  4. Gross National Product • The GNP at market price stands for the monetary value of all goods and services that are • Currently produced • Sold through official market • Not resold or used in further production during the measurement period • Produced by nationally owned resources (factors of production) • Valued at market prices for a given period of time

  5. National Income concepts GDP at Market Price GDP at Factor Cost GNP at Market Price GNP at Factor Cost NDP at Market Price NDP at Factor Cost NNP at Market Price NNP at Factor Cost Personal Income Disposable Income

  6. NNP mp GNP mp GNP fc - depreciation -net indirect taxes -net income from abroad - depreciation GDP mp -net indirect taxes -net income from abroad -net income from abroad NNP fc -net indirect taxes - depreciation -net income from abroad NDP mp NDP fc GDP fc -net indirect taxes - depreciation

  7. National Income: India

  8. Thanks

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