National income 1

What do you mean by National Income?

National income is the total income, over a specified period of time, of all the inhabitants of
an economy after allowing for capital consumption. Thus National Income, strictly, is a money measure
of the incomes received or accruing to residents of a country as owners of the factors of production,
during a specified period of time.
National income includes wages, rents, interest and profits, not only in the form of cash
payments, but as income from contributions made by employers to pension funds, income of the self-
employed, and undistributed business profits.
NI can be looked at from three stand points:-
1st It can be regarded as the sum total of all goods and services produced in the economy during a
given period of time;
2nd It can also be regarded as the sum total of all incomes earned in the production process;
3rd It can be regarded as the sum total of all expenditures on national product.
What do you mean by Circular flow of Income?
The circular flow of income is a simple model of the economy showing flows of goods and services
and factors of production between firms and households.
In the absence of government and international trade this simple model shows that households
provide the factors of production for firms who produce goods and services. In return the factors of
production receive factor payments, such as wages, which in turn are spent on the output of firms.
This basic flow is shown in the
diagram below. REVENUE OF FIRM
This model of the economy THE FIRM FACTOR
demonstrates that economic activity is PAYMENT
a flow. In actual fact it can be FACTOR
considered two flows, one of goods
and services and a flow of money. The
size of these flows is an indicator of PRODUCT FACTOR
the amount of economic activity. The MARKET MARKERT
circular nature of the flows means that
there will be a number of different PRODUCT FACTOR
ways of measuring the size of the flow.
Economists maintain that there are PRICE OF HOUSEHOLD FACTOR
three possible ways of measuring this PRODUCT INCOME
flow with each way looking at a
different part of the circular flow of
income. However all should give the same
answer:
 The output method: the total amount of
goods and service produced in one year
 The expenditure method: the total
amount of domestic spending by
consumers, firms, government and
foreigners
The income method: the total incomes earned
by the factors of production involved in the
production of goods and services in one year.
Leakages and Injections
The basic model can be extended to
include a few “additions” to and
“subtractions” from the flow of income.
Saving and Investment
All the income received by households is not spent. A portion is saved. Saving is a withdrawal from
the circular flow of income. Investment expenditure adds funds into the income flow. Saving is
converted into investment through the financial sector which includes both the money market and the
capital market.
National income 2
Taxes and Government Spending
A portion of the income accruing to households is taxed by the government. It reduces the
disposable income. Taxation is a withdrawal from the income flow. Government expenditure on goods
and services and factor inputs “adds” fund into the income flow.
Imports and Exports
Households spend a portion of their income on imported goods and services. Imports are a
‘withdrawal’ from the circular flow. On the other hand, some output is sold to foreign buyers. Exports
represent a demand for domestically produced goods' and services and, hence, constitute an ‘injection’
into the circular flow of income.
What do you mean by the census of income method?
In the census of income method, we make a census of all the earning units of an economy.
An earning unit may be an individual or a company. A joint stock company owned by shareholders has a
separate legal entity and it may earn income like an individual. In the national income accounting only
those incomes of earning units are included which accrue to the earning units due to their participation
in the production process.
Let us assume that production takes place only in firms. Individuals supply different
factors of production to the firms and as a result they get factor incomes. These factor incomes take the
forms of rent, wages, interest, and profit. Hence the national income is equal to the sum total of all
wages, rents, interests, and profits earned in the production process. This is also known as the factor
payments total. .'. NI = rent + wage + interest + profit+ Mixed Income
In this method following points should be noted:-
Inclusions:
1. Mixed income of self-employed persons. This is known as proprietors’ income such as the income
of the owner of a grocer’s shop. The person supplies all the factors in his own enterprise. He puts his
own labour. He has set up his shop in his own room. He has supplied his fixed and working capital and,
above all, he takes the risk o f doing business. So his total income has four components:
(i) His own wage (or opportunity cost o f labour, i.e., the income he would have earned by bworking for
another enterprise as a labourer),
(ii) Rent on his own room,
(iii) Interest on his own capital, and
(iv) Profit for his entrepreneurial ability.
In case o f a small firm like this, it is not possible to calculate the four components of income separately.
This is why these incomes come under a broad heading, viz., proprietors’ income which is a major
component of total income in a developing country like India.
2. Undistributed Profit: Joint stock companies keep a part of their profit as savings of the company.
This is known as Undistributed Profit. Though it is not any one’s income, but it has to be included.
Exclusions:
1) Transfer payments or transfer earnings, that is, income which is earned by an individual without
rendering any goods or services in return such as pensions, reliefs, allowances, etc should not be
included in the national income accounting.
2) Capital and windfall gains. Capital gains made by selling shares or houses or land are not included
in national income. The same is true for lotteries. The reason is that capital gains are made by
selling secondhand (used) goods. And windfall gains (like winning prizes in lotteries) are made
through sheer luck. Those who make such gains do not make any contribution to GDP, i.e., do not
make any value addition. However, if a portion of the capital gains made by a person represents a
broker’s commission, it is to be included in national income.
3) Personal income tax. Income tax paid by individuals is a part of the compensation of employees and
thus should not be included in the national income separately.
4) Unpaid work. Major repairs done around the house, caring for children, cooking for the family and
cleaning up take up much time and effort. Rich people engage others for doing these for which
payments are made to outsiders — such payments become part of GDP (if reported to the tax
authorities). Most people do these works themselves. These are not revealed in national income
accounts1.
National income 3
5) Underground transactions. Income from illegal activities such as theft, dacoity, smuggling,
gambling, black marketing, etc. are excluded from national income because they are not officially
reported (or, recorded). The same argument holds for any income earned outside the official
economy. The reason is that criminal activities, such as drug-dealing, racketing, kidnapping etc. are
kept underground by market participants. It is very difficult to measure the extent o f underground
activity undertaken by businesses even by suppressing a major portion o f their input purchases
and output sales. The reason is that such transactions are not done through banks, and profits are
not shown in books-of accounts.
The census of income method is easy and simple to follow. However, its chief
disadvantage is that in this method we have at first to identify all the earning units of the economy.
Those earning units will be considered who earn income due to participation in the production of
goods and services. An earning unit may be an individual or an institution. There are large numbers
of earning units in the economy and we have to collect the necessary data from all these earning
units. This requires much time and money.
What do you mean by Census of Production Method?
In this method we make a complete census of all products produced by the members of
the nation during the year and add them together to get the GNP total. Since different goods and services
have different units , so we can add them up by taking their money values only.
In this method following principles are followed;
1. All marketed goods and services are included;
2. All personal and household services i.e. services provided by the members of the family that are
not marketed are excluded. But the value of services rendered by the paid workers in the
household sectors are included;
3. Goods produced and consumed in the household sectors forming a major part of the total
production in the underdeveloped economies are included; in many underdeveloped economies,
peasants produce mostly for self consumption, rather than for sale. These goods are included by
valuing them at market prices.
4. Services of owner occupied houses are to be included by evaluating them on the basis of rent of
similar houses that have been actually rented out.
5. The stock of unsold goods i.e. newly acquired inventories are to be included;
6. Common public services, such as defence, police etc are to be included by evaluating them on the
basis of cost of provision of such services;
7. In the case of professionals such as self employed doctors, lawyers, accountants, etc. The values of
such services are to be included;
In the census of production method , if we take the values of each and every goods separately then the
problem of multiple counting may arise. As for example suppose in an economy wheat is produced
worthRs.1000/- in an year. The entire wheat is used up in the production of flour of Rs.1500/-. Now if
we add up both the wheat and flour, then basically wheat is counted twice. This is known as problem of
multiple counting. To avoid this problem we can follow either value added method or final goods
method.
What is value added method?
The national income of a country is the money value of goods and services produced in a year.
Hence, to measure national income by the census of production method, if we take the value of each and
every product separately, some products will be counted twice or more than twice. Thus, there will be
double or multiple counting and the magnitude of national income will be inflated. To avoid this
problem, two methods are available: Final product method and Value added method. Both the methods
will give the same figure of national income.
Value added refers to the additional value created at a particular stage of production. Value Added is
simply measured as the value of the output produced (by a firm for example) minus the costs of the
intermediate goods. In short, by value- added, we mean the total value of the output produced in a year by a
producer minus the cost of raw materials and intermediate inputs used during the year.The result must be
equal to the sum of wages and profits.
In modern neoclassical economics, especially in macroeconomics, it refers to the
National income 4
contribution of the factors of production, i.e., land, labour, and capital goods, to raising the value of a
product. The factors of production provide "services" which raise the unit price of a product relative to the
cost per unit of intermediate goods used up in the production.
Economists use the value-added method as a way to avoid double counting, i.e., the
counting of the same input twice. The sum of the value added in each of the different stages of
production equals the value of the final product, the product that is directly consumed. Final products
include consumer goods and fixed capital equipment. A numerical example illustrating the double
counting issue explains this concept below.
Suppose in an economy wheat is produced worthRs.1000/- in an year. The entire wheat is used
up in the production of flour of Rs.1500/-. Now if we add up both the wheat and flour, then basically
wheat is counted twice. This is known as problem of multiple counting. Now if we take the value added
of each stage of production, i.e. in the production of wheat value added is Rs.1000/- and in the
production of flour it is Rs.500/-. Then the total of these value added amounts to the price of final goods.
This can be seen from the table below.
commodity Value Value Added Income(wage/profit)
Wheat 1000/- 1000 1000/-
Flour 1500/- 500 500/-
Inflated GNP = 2500/- Actual GNP = 1500 GNP from Income side= 1500

What is Final goods method?

In this method all goods are classified into two groups namely Intermediate goods and Final
goods according to their use. If a product produced in a year goes into the production of another product
in the same year and is used up, then it is called intermediate goods. On the other hand if a commodity is
consumed then it is known as final goods or product. In this method values of all final goods are added to
get the GNP.

THE EXPENDITURE METHOD

According to the expenditure method, national income is the total o f all final expenditures.
There are four main components of such expenditure. These are:
1. Private final consumption expenditure (C)
It includes all expenditure on final goods and services made by individuals (households) and not for-
profit private institutions such as Rotary clubs (which distribute food and cloth to poor people).
Such expenditure has three main components:
(i) Consumer nondurables like food and cloth
(ii) Consumer durables like refrigerators, washing machines and
(iii) Services such as haircuts, laundry, health care, education, and legal advice.
2. Investment expenditure (/)
It refers to business expenditure on capital goods such as purchasing textile producing machines by a
cloth manufacturer or a blast furnace by a steel plant.
Investment expenditure has three main components:
(i) Fixed investment, i.e., expenditure on fixed assets like plant, equipment and machinery1.
Such investment leads to the creation of new production capacity of a firm by adding to it stock o f
physical capital. It includes both new investment and replacement investment.
(ii) Inventory investment. Inventories are of three main types: (a) raw materials; (b) semifinished
goods or goods-in-process, and (c) finished goods. Inventory investment refers to change in stock
during a year as is measured by the difference between ‘closing stock of the year’ and ‘opening stock o f
the year’.
(iii) Residential construction. This includes investment made by companies on constructing staff
quarters or executive bunglows, office buildings or staff recreation clubs.
These three items together constitute gross domestic fix e d investment or capital formation since
investment implies addition to a society’s existing stock o f capital.
3. Government expenditure on final goods (G)
National income 5
Government expenditure is of two main types: (a) spending on currently produced final goods, and (b)
transfer expenditure. Only (a) is included in national income, and (b) is totally excluded.
Note that (a) is called governtment final expenditure. It includes all current expenditure by Centre,
State and local governments on goods and services including the wages and salaries of government
employees.
Government expenditure can be either investment expenditure (as on road construction) or
consumption expenditure (such as purchase o f food from farmers for distribution to the army or
through ration shops or purchase of medicines for distribution through government hospitals).
4. Net exports
Net exports are the difference between exports and imports o f a country in an accounting year.
Exports are expenditures by foreigners on domestically produced final goods and services. In contrast,
imports are expenditure by the residents o f the economy on goods produced in other countries.
Exports are an addition to domestic expenditure and imports are a subtraction from it. When, for
example, an American buys Indian tea, total final expenditure in India increases. By comparison, when
an Indian buys an American machine, the expenditure is on a final capital good (or a producer’s)
produced abroad. In other words, when a country exports something money flows into the country.
When it imports something, money goes out o f the country.
The sum total of these four types of expenditure on domestically produced goods and services in an
accounting year is known as GDP at market price. This shows the equivalence o f output, income and
expenditure.
TFE = C + I + G + ( X - M )
where TFE is total final expenditure
C is consumption expenditure o f household,
I is investment expenditure o f business firms,
G is government expenditure on goods and services,
X is foreigners’ expenditure on domestic goods (exports), and
M is domestic expenditure on foreign goods (imports).
What is saving?
Saving is defined as that part of income which is not consumed. Thus if we deduct the consumption
expenditure of a year from the national income of that year then we get the saving of that year
Thus, Saving = NI – Consumption,
Or, NI = saving + consumption; this means that adding consumption expenditure and saving we can
get the NI of an economy.
Describe the division of NI into consumption and investment.
We can determine NI of a country from the expenditure side also. In a closed economy without
Govt. we can break down total spending on all goods and services produced into two categories:
spending done by consumers on goods and services (abbreviated simply to the letter C); spending
done by businesses on capital goods (total investment spending, I);
Consumption spending is the total of all outlays made by households on final goods and services.
In all countries it is by far the largest component of total spending. It covers spending on an enormous
range of items, including durable goods like television sets and cars, non-durable goods like food and
clothing, and personal services such as legal advice, hairdressing, and dental care.
Total or gross investment spending may be divided into two main categories. The first is spending
on capital goods—purchases of plant and equipment either to replace existing capacity that is wearing
out or to increase capacity. This is often called fixed capital formation. A second type of investment
spending is on inventories. Many businesses find it convenient or necessary to hold certain supplies of
goods on hand, in which case investment in inventories may be considered voluntary.Because all
spending done in the country falls into one or other of these two categories, we can say that total
expenditure is the sum of C+I. now as expenditure is carried out of income earned. Thus we can say
that, NI = C + I.
What do you mean by saving investment identity?
Savings identity or the savings investment identity is a concept in economics stating the assumption
that the amount saved (S) in an economy will be amount invested (I).
National income 6
Adam Smith notes this in The Wealth of Nations. In the general equilibrium model savings must equal
investment for the economy to clear.
Algebraically this can be shown as;
As we know, In a closed economy without Govt. we can break down NI into two categories: spending
done by consumers on goods and services (abbreviated simply to the letter C); spending done by businesses on
capital goods (total investment spending, I); i.e. NI = C + I.
On the other hand, Saving is defined as that part of income which is not consumed. Thus if we deduct the
consumption expenditure of a year from the national income of that year then we get the saving of that year.
Thus, Saving = NI – C. Or NI = C+S. Therefore, C+I≡ NI ≡ C+S;
Thus, I≡ S; this is known as savings investment identity.
The reason behind such identity follows from the definition of saving and investment. Investment is that part of
output which is not spent on consumption. On the other hand saving is also that part of income which is not
spent on consumption expenditure. Now as in the aggregate level income and output are identical, so, saving
and investment are also identical. Though in this respect we can mention that only realised i.e. ex post saving
and investment are identical and this is not true for planned or ex ante saving and investment. This is because
in a modern economy decision to save and decision to invest are taken by two separate groups of people.
Describe the problems of measuring NI.
There are two popular methods of measuring NI, viz, Income census method and
Production Census Method. In case of both the method estimation of NI involves some problems. Let us
describe them.
Problem of Census of Income Method
1) Problem of identifying earning unit:- it is quite difficult to identify the all earning units, basically in a
populous country like India.
2) Lack of reliable data:- It is difficult to get the actual information about the income, as many people
suppress their original income in order to evade income tax.
3) Problem of Mixed Income:- When an earning unit earns money from different sources, his income is
then referred as mixed income. In case of mixed income people often hide their actual income in
order to evade income tax.
4) Problem of Illegal Income:- if the source of income is somehow illegal, such as, smuggling, black
marketing, etc. Then people suppress this income.
5) Transfer earning & capital gain:- In NI Accounting we have to exclude transfer earning and income
from capital gain. Such exclusion often creates problem.
6) Suspicion: People are generally suspicious of the activities of data collectors. They conceal information
from the data collectors for many reasons.
Problem of Census of Production Method
1) Limited use: - this method can be used efficiently in case of organised producing sector like joint
stock company, etc. But in case of service producing units like Bank, Insurance, etc it si quite difficult
to use this method.
2) Unorganised sector:- it is not possible to use this method for numerous unorganised sector especially
in an underdeveloped country like India.
3) Lack of reliable data:- In case of this method the problem of getting reliable data persists also as firms
often hide their actual production to evade tax.
4) Imputed cost:- it is customary to include imputed cost in the production process to get the actual
figure of Value Added. But in reality it is quite difficult to get actual figure of Imputed cost.
5) Valuation of Inventory:- It is also customary to include the values of currently accumulated inventory.
But the method through such valuation will be made is not free of problem.
6) Indifference of the enumerators: The enumerators of national income are very often indifferent to
their responsibilities. In many cases, they do not go to the producer or to the actual field of
production and give fictitious figures on production.
Problem with agriculture sector
Besides these general problems in case of underdeveloped countries, several problems are associated
with the agricultural sector of these countries. Let us describe them.
1) Self consumption:- in case of NI accounting in underdeveloped countries production for self
consumption has to be added in NI. But it is quite difficult to get actual figure of such consumption as
there are numerous small farmers each producing very small amount of total output and they are not
literate enough to make an estimate of their consumption.
National income 7
2) Lack of reliable data:- as a large section of population are illiterate, they keep no account of their income
or expenditure. Thus it is difficult to get reliable data from them.
3) Illiteracy: In India, small farmers and workers are generally illiterate. They cannot keep accounts. Hence,
they are unable to provide information on production, cost, etc.
Finally it can be concluded that in order to estimate NI properly, we should have to use a mixture
of both the method. Basically in reality we use both the method as per their convenience of getting reliable data.
National income aggregates
Gross Domestic Product (at market prices) : The Gross Domestic Product at market price (GDPmp) indicates
the value of all final goods and services produced within the domestic territory of a country during any
particular year. These goods and services are valued at the prevailing market prices of those goods and
services.
Net Domestic Product (at market prices): The Net Domestic Product at market prices (NDPmp) refers to the
value of all final goods and services at the prevailing market prices within the domestic territory of a country
during any particular year after making allowance for the consumption of fixed capital or depreciation
allowance.
NDPmp = GDPmp - Depreciation allowance
Gross National Product (at market price) : The Gross National Product at market prices (GNPmp) refers to
the aggregate market value of all final goods and services produced by the residents of a country during any
particular year. Thus, there are many residents of the country who are producing outside the country. Thus, in
order to get GNPMP from GDPMP we have to add those incomes earned by the residents of the country from
abroad with GDPMP. Again there are some foreigners who are producing within the country. Thus we have to
deduct their income from GDPMP .
Now, GDPMP + incomes earned by the residents of the country from abroad – incomes of foreigners residing
in the country = GDPMP + Net Foreign Earning from Abroad = GNPMP .
Distinguish between Gross Domestic Product (GDP) & Gross National Product (GNP)
Gross domestic product means the sum of values added by all producers' within the geographical boundary
of the country. Thus GDP is the total Income received from all economic activities in one country, regardless
of who owns the productive assets. As for example in India it is the Total Product in Money value of all Indian
enterprises located in India. It means it would also include the profit of a foreign firm located in India.
On the other hand Gross National Product is the sum of values added by the country men only.
GDP GNP
Definition An estimated value of the total worth of a An estimated value of the total worth of
country’s production and services, within its production and services, by citizens of a country,
boundary, by its nationals and foreigners, on its land or on foreign land, calculated over the
calculated over the course on one year. course on one year.
Formula for Calculation GDP = consumption + investment + GNP = GDP + NR (Net income inflow from
(government spending) + (exports − imports). assets abroad or Net Income Receipts) - NP (Net
payment outflow to foreign assets).
Uses Business, Economic Forecasting. Business, Economic Forecasting.

Application (Context in To see the strength of a country’s local To see how the nationals of a country are doing
which these terms are economy. economically.
used)

Net National Product (at market prices): The net National Product at market prices (NNPmp) refers to the
market value of all final goods and services produced by the residents of a country after allowing for the
depreciation of fixed capital during any particular year. Thus, if we deduct the consumption of fixed capital or
the depreciation allowance from the GNPmp, we get NNPmp.
NNPmp = GNPmp - Depreciation allowance.
Gross Domestic Product (at factor cost) : The Gross Domestic Product at factor cost (GDPtc) refers to the
estimation of GDP in terms of the aggregate earnings of factors of production. It is the aggregate earnings of
different factors of production within the domestic territory of a country during any year.
Difference between GDPfc and GDPmp : We have already discussed that market price includes indirect
business taxes but they do not accrue to the factor income. However, market price does not include subsidy
element, but this amount flows to the factors as factor income. Thus, if we deduct net indirect business taxes
from the GDPmp, we get GDPfc.
.'. GDPfc = GDPmp - indirect business taxes + Subsidy = GDP - (indirect business taxes - Subsidy)
National income 8
= GDPmp - net indirect business taxes.
Gross National Product (at factor cost): The Gross National Product at factor cost (GNPFC) refers to the
GNP in terms of factor incomes. It is the aggregate earnings received by different factors of production (i.e.,
wages, rent, interest and profits) supplied by the residents of a country during any particular year.
There is a difference between GNP at market prices (i.e., GNPmp) and GNPfc. If we deduct the net indirect
business taxes from the GNP (the explanation being the same as before), we get the GNPfc.
GNPfc = GNPmp - net indirect business taxes, or, GNPmp = GNPfc + net indirect business taxes.
Net Domestic Product (at factor cost) : The Net domestic product at factor cost (NDPfc) estimates the NDP
in terms of the aggregate factor incomes of the residents and non-residents within the domestic territory of a
country during any particular year. It is actually the sum total of net value added in the corporate and quasi-
corporate enterprises, Government sector and households within the domestic territory of a country during any
particular year. It is also called as 'Domestic Factor Income’.
If we deduct depreciation allowance from the GDPfc, we get NDPfc.
NDPfc = GDPfc - depreciation allowance.
What do you mean by Domestic Income?
Domestic income is the income earned by the residents and non-residents within the domestic territory of a
country during any particular year. Thus, the domestic income is a geographic concept, while national income
is an economic concept.
Thus we can deduce Domestic Income from GDP in the following manner,
GDP market price – Depreciation = NDP Market Price –Net Indirect Tax = NDP Factor Cost .
Since, the national income includes net factor income from abroad. Thus we can also derive Domestic Income
from the NI in the following manner,
National Income - Net factor income from abroad = Domestic Income.
Net National Product (at factor cost):
The Net National Product at factor cost (NNPfc) refers to the value of all final goods and services produced by
the residents of a country, whether operating within the domestic territory or outside it, at their factor costs. It
is also termed as the National Income of a country.
If we deduct net indirect business taxes from the NNPmp, we get NNPfc.
.’. NNPfc = NNPmp - Net indirect business taxes. = National income
Alternatively, the NNPfc or the national income can be defined as the sum total of 'domestic factor income'
(i.e., NDPfc) and net factor income earned abroad.
.'. National income or NNPfc = Domestic factor income or NDPfc + Net factor income earned abroad.
Distinguish between National Income and Domestic Income.
National Income Domestic Income
It includes income earned by the residents only. It includes income earned by the residents as well as
non-residents.
It consists of income earned both within and outside the It consists of income earned only within the
domestic territory of a country. domestic territory.
1.
It is an economic concept. It is a geographic concept.

It includes net factor income from abroad It does not include net factor income from abroad.

National income = Domestic income + Net factor Domestic income = National income - Net factor
income from abroad. income from abroad.
Private income:
The private income refers to the factor incomes earned within the domestic territory and abroad by the
private enterprises and workers (i.e., factor owners in the private sector), current transfers from the
Government and net transfers from the rest of the world.
In fact, all the factor incomes (= compensation of employees + operating surplus + Mixed income of self-
employed) generated within a given year, do not flow to the private sector. A part of it flows to the Govt. also.
Further, the non-departmental enterprises of the Government save a part of their profits for future expansion.
If these two sums are deducted from the NNPfc or National income, we get income accruing to the private
sector.
National income 9
Transfer payments: The receipts which help some individuals to maintain their livelihood even by not
participating in productive activities, are considered as transfer income. Alternatively, the payments
received by the households, business firms and nonprofit organisations from the government and other sources
without rendering any productive activities, can be considered as transfer payments. The receipts of such
payments by the concerned units are called transfer income.
For example, the transfer payments by the Government from its current income include subsidy payments,
old age pension, unemployment benefits, scholarships to poor students, etc.
Personal income : The personal income is defined as the current income of persons or households from all
sources. If we want to estimate personal income from the private income, then we have to deduct those parts of
the private income which do not accrue to the resident individuals as personal income.
We have to deduct undistributed profits of the enterprises (or the savings of enterprises), the net retained
earnings of the foreign enterprises, the contributions of enterprises towards social security schemes (say, group
insurance or employees' state insurance schemes), and the corporate taxes paid by the enterprises from the
private income for this estimation.
.'. Personal income = Private income
(-) Undistributed profits of the enterprises
(-) Net retained earnings of the foreign enterprises
(-) Contribution of the enterprises towards social security schemes
(-) Corporate taxes.
Personal disposable income : It is not possible for the households to spend the entire personal income.
The Government takes away a part of it by way of income tax and other miscellaneous taxes (e.g., the
municipality taxes). So, these taxes are deducted from the personal income to arrive at personal disposable
income.
.'. Personal disposable income = Personal income - Direct taxes paid by the households – Other miscellaneous
taxes.
National income 10
জাতীয় আয়
জাতীয় আয় বলতত কি ববাঝ?
বিান কনকদি ষ্ট সমতয় বিান বদতের সিল অকিবাকসর বমাট আয় বেতি অবচয় বাদ কদতল আমরা যা পাই তা হল বসই বদতের
বসই সমতয়র জাতীয় আয়। সুতরাাং বিান কনকদি ষ্ট সমতয় বিান বদতের অকিবাসীরা উৎপাদতনর উপাদান সরবরাতহর মািযতম বমাট বয
পকরমান আয় িতর োতি তার সমকষ্টতি বসই বদতের জাতীয় আয় বলা হয়।
সুতরাাং, বিান বদতের, বমাট খাজনা + বমাট মজুকর+ বমাট সুদ +বমাট মুনাফা = জাতীয় আয়।
এখন বিান বদতের জাতীয় আয় কতনকদি বেতি বদখা বযতত পাতর,
প্রেমতঃ, বিান বদতে বিান কনকদি ষ্ট সমতয় বমাট বয পকরমান দ্রবয সামগ্রী বা বসবা িাযিাকদ উৎপাকদত হতয়তে তার সমকষ্ট হল জাতীয়
আয়।
কিতীয়তঃ, জাতীয় আয়তি বদতের যাবতীয় উপাদান আয়, বযমন খাজনা, মজুকর, সুদ, মুনাফার সনকষ্ট কহসাতব বদখা বযতত পাতর।
তৃ কতয়তঃ, জাতীয় আয়তি বমাট ব াগবযয় ও বমাট কবকনতয়াগ বযতয়র সমকষ্ট কহসাতব বদখা বযতত পাতর।
National income 11

জাতীয় আয় পকরমাতপ আয় সুমারী পদ্ধকতর বর্িনা দাও।

আয় সুমারী পদ্ধকতর মািযতম জাতীয় আয় পকরমাতপর বেতে আমরা প্রেতম সমস্ত বদতের উপাজিনিারী এিিগুকলতি কচহ্নীত
িকর। উপাজিনিারী এিিগুকল বিান কনকদি ষ্ট সমতয় বমাট বয পকরমান আয় িতর তার বেতি তাতদর আয় িরার জনয বয বযয় তা বাদ
কদতল আমরা পাই বসই সমতয় তাতদর স্থুল আয়। এই সিল স্থুল আতয়র সমকষ্ট কনর্িতয়র মািযতম জাতীয় আয় কনর্িতয়র পদ্ধকততি বলা হয়
আয় সুমারী পদ্ধকত।
এখন যকদ আমরা অনুমান িকর বয বিান বদতে যাবতীয় উৎপাদন িাযি পকরচালনা িতর ফামি এবাং পকরবার বসই সিল
উৎপাদন িাতযি উপাদান যো- জকম, শ্রম, মূলিন ও উতদযাগ সরবরাহ িরার মািযতম উপাজিন িতর। তহতল আয় সুমারী পদ্ধকত অনুসাতর
বসই বদতের জাতীয় আয় হতব, যাবতীয় উপাদান আতয়র সমকষ্ট,
অেিাৎ, বমাট খাজনা + বমাট মজুকর+ বমাট সুদ +বমাট মুনাফা = জাতীয় আয়।
National income 12
এই পদ্ধকত অনুসরতর্র বেতে কনতনাক্ত কবষয়গুকলর প্রকত নজর রাখতত হয়।
1 . হস্তান্তর আয় বা হস্তান্তর পাওনা, অেিাৎ, বয এিতরফা আয় বিান উৎপাদন িাতযি অাংেগ্রহতর্র মািযতম আতসনা, বযমন,
ববিার াতা, বপনসন, ইতযাকদ জাতীয় আতয় অন্তি ূ ক্ত হতব না।
2 . মূলিনী লা , অেিাৎ, বিান কজকনস িম দাতম কিতন ববকে দাতম কবক্রতয়র মািযতম বয লা হয় তা জাতীয় আতয় অন্তি ূ ক্ত হতব
না।
3 . বিান বযৌে মূলিনী বিাম্পানী বমাট বয মুনাফা আয় িতর, অতনি সময় তার পুতরাটা বেয়ার বহাল্ডারতদর মতিয কবতরর্ না িতর
তার এিটা অাংে অবকিত মুনাফা ইসাতব কবষযত প্রতয়াজতনর িো ব তব সকরতয় রাখা হয়। এঈ অবকিত মুনাফা িারুর আয় না হতলও
এতি জাতীয় আতয় অন্তি ূ ক্ত িরতত হতব।
4 . বিান উৎপাদতনর অন্তিকনকহত বযয় বসই উৎপাদতনর আয় বেতি বাদ কদতয় ততব বসই আয়তি জাতীয় আতয় অন্তি ূ ক্ত িরতত হতব।
5 . পূতবি ক্রয় িরা সম্পকি কবক্রতয়র মািযতম বয আয় তা জাতীয় আতয় অন্তি ূ ক্ত হতব না।
জাতীয় আয় পকরমাতপর বেতে আয় সুমাকর পদ্ধকত তত্ত্বগত কদি বিতি সরল হতলও এই পদ্ধকতর সবতচতয় বড় অসুকবিা হল
উপাজিনিারী এিিগুকলতি কচন্হীত িরা।
জাতীয় আয় পকরমাতপ উৎপাদন সুমাকর পদ্ধকতটির বর্িনা দাও।
উৎপাদন সুমাকর পদ্ধকত অনুসাতর বিান এিটি বদতে এি বেতর বয সমস্ত দ্রবয ও বসবা িাযিাকদ উৎপন্ন হয় তাতদর অেিমূলযতি
বযাগ িতর আমরা পাই স্থুল জাতীয় উৎপাদন GNP । এই GNP বেতি অবচয় বাদ কদতল আমরা পাই নীট জাতীয় উৎপাদন বা NNP ।
এই NNP ই হল জাতীয় আয়।
এই পদ্ধকতর মািযতম জাতীয় আয় কনর্িতয়র বেতে কননকলকখত কবষয়গুকলর উপর নজর রাখা হয়।
1 . বিান বেতর উৎপাকদত বয সিল দ্রবয বাজাতর কবক্রতয়র জনয উপস্থাকপত িরা হতয়তে, বসই সিল দ্রতবযরই অেিমূলয বিবল মাে
জাতীয় আতয় বযাগ িরা হতব।
2 . সাংসাতরর সদসযরা সাংসাতরর জনয কবনা মজুকরতত বয সব পকরশ্রম িতর তা জাতীয় আতয় অন্তি ূ ক্ত হতব না।
3 . অনুন্নত বদেগুকলতত উৎপাকদত েতসযর এিটি বড় অাংে উৎপাদি ও তার পকরবাতরর বলাতিরা ব াগ িতর োতি। যকদও এই অাংে
বাজাতর কবকক্রর জনয উপস্থাকপত হয়না, তবুও এতি জাতীয় উৎপাদতনর মতিয অন্তি ূ ক্ত িরতত হতব।
4 . বাকড়র মাকলি যকদ কনতজর বাড়ীতত বসবাস িতরন, ততব বয বসবা কতকন কবনামূতলয পাতেন তার বাজার মূলয অন্তি ূ ক্ত িরতত হতব।
5 . এই বেতর উৎপাকদত কিন্তু অকবক্রীত দ্রবযতি জাকতয় উৎপাদতন অন্তি ূ ক্ত িরতত হতব।
6 . সািারর্ জনতসবা বযমন পুকলে, প্রকতরো, বপৌর পকরতষবা, ইতযাকদ যকদও সরিার কবনামুতলয কবতরন িতর িাতি, তোকপ, এগুকলর
উৎপাদন বযয়তি অন্তি ূ ক্ত িরতত হতব।
7 . স্বকনযুক্ত বযকক্ত, বযমন, ডাক্তার, উকিল প্র ৃ কতর উৎপাকদত বসবার মূলযায়ন িরা হতয় োতি উপাজিতনর মািযতম।
এই পদ্ধকতর মািযতম জাতীয় আয় কনর্িতয়র সবতচতয় বড় সমসযা হল, এিাকিিবার গর্নার সমসযা। সিল দ্রতবযর দাম যকদ
পৃেি াতব গর্না িরা হয়, ততব এিাকিিবার গর্নার সমসযা সৃকষ্ট হয়। উদাহরর্স্বরূপ, যকদ িকর বিান বদতে এি হাজার টািার গম
উৎপাকদত হতয়তে। এখন বসই গম বেতি বয পকরমান ময়দা উৎপাকদত হয় তার মূলয যকদ দু হাজার টািা হয়। তাহতল কহসাব মত বমাট
উৎপাদন হল, ১০০০টািার গম+২০০০টািার ময়দা = ৩০০০টািা; কিন্তু, এর ফতল গতমর মূলয দুবার গর্না িরা হতয়তে, িারর্, ময়দার
মূতলযর মতিয গতমর দামও িরা রতয়তে। এটাই হল এিাকিিবার গর্নার সমসযা।
এই সমসযাতি এড়াতনার জনয দুটি কবিল্প পদ্ধকত সািারর্তঃ অনুসরর্ িরা হতয় োতি, যো,
ি) মূলয সাংতযাজন পদ্ধকত এবাং খ) বেষ উৎপন্ন দ্রবয পদ্ধকত;
মূলয সাংতযাজন পদ্ধকত বলতত কি ববাঝ?
উৎপাদতনর প্রকতটা পযিাতয় উৎপাকদত পতর্যর মূলয বয পকরমাতন বৃকদ্ধ প্রাপ্ত হয়, তাতি বসই পযিাতয়র মূলয সাংতযাজন বলা হয়।
অেিাৎ বিান উৎপাদন পদ্ধকততত উপাদাতনর মূলয ও উৎপাকদত পতনযর মূতলযর পােিিযই হল মূলয সাংতযাজন।
আবার নয়া ধ্রুপদী অেিনীকতকবদতদর মতত বিান উৎপাদন পদ্ধকততত উপাদানগুকল, বযমন, জকম, শ্রম, মূলিন ও উতদযাগ উৎপাকদত
পতর্যর মূল বয পকরমাতন বৃকদ্ধ িতর োতি, তাই হল মূলয সাংতযাজন।
এই পদ্ধকত অনুসাতর উৎপাদতনর প্রকতটি পযিাতয় কি পকরমাতন মূলয সাংতযাজন হতয়তে তা কনর্িয় িরা হয়, এবাং এই মূলয
সাংতযাজনগুকলর সমকষ্টই হল স্থুল জাতীয় উৎপাদন।
উদাহরর্স্বরূপ, যকদ িকর বিান বদতে এি হাজার টািার গম উৎপাকদত হতয়তে। এখন বসই গম বেতি বয পকরমান ময়দা
উৎপাকদত হয় তার মূলয যকদ দু হাজার টািা হয়। আবার বসই ময়দা বযবহার িতর বয পকরমান পাউরুটি উৎপাকদত হতয়তে তার মূলয
যকদ কতন হাজার টািা হয়, তাহতল মূলয সাংতযাজন পদ্ধকত অনুসাতর, গম উৎপাদতন মূলয সাংতযাজন হল ১০০০টািা, পুনরায় ময়দা
উৎপাদতন মূলয সাংতযাজন হল ১০০০টািা এবাং পাউরুটি উৎপাদতন মূলয সাংতযাজন হল ১০০০টািা। তাহতল জাতীয় উৎপাদন হতব,
(১০০০+১০০০+১০০০) = ৩০০০টািা।
বেষ উৎপন্ন দ্রবয পদ্ধকত বলতত কি ববাঝ?
এই পদ্ধকততত সমস্ত দ্রবযতি দু াতগ াগ িরা হয়, যো- অন্তিবতী দ্রবয এবাং বেষ উৎপন্ন দ্রবয।
যকদ বিান দ্রবয বয বেতর উৎপাকদত হতয়তে, বসই বেতরই অনয বিান দ্রতবযর উৎপাদতন বযবহৃত হয়, তাতি অন্তিবতী দ্রবয
বতল। যকদ িকর বিান বদতে এি হাজার টািার গম উৎপাকদত হতয়তে। এখন বসই গম বেতি বয পকরমান ময়দা উৎপাকদত হয় তার
National income 13
মূলয যকদ দু হাজার টািা হয়। আবার বসই ময়দা বযবহার িতর বয পকরমান পাউরুটি উৎপাকদত হতয়তে তার মূলয যকদ কতন হাজার
টািা হয়, তাহতল এখাতন গম ও ময়দা হল অন্তিবতী দ্রবয।
অনযকদতি, বিান দ্রবয বয বেতর উৎপাকদত হতয়তে বসই বেতরই যকদ সরাসকর ব াগ িরা হয়, ততব তাতি বেষ উৎপন্ন
দ্রবয বতল। বযমন উপতরাক্ত উদাহরতন পাউরুটি হল বেষ উৎপন্ন দ্রবয।
এই পদ্ধকত অনুসাতর বিান বচতর উৎপাকদত দ্রবযগুকলর মতিয বেষ উৎপন্ন দ্রবযগুকলতি কচহ্নীত িরা হয় এবাং বসগুকলর
মূলয বযাগ িতর জাতীয় উৎপাদন কননিয় িরা হয়।
National income 14

জাতীয় আয় পকরমাতপর সমসযাগুকল আতলাচনা ির।

জাতীয় আয় পকরমাতপর বহুল বযবহৃত পদ্ধকত মূলতঃ দুটি , আয় সুমারী ও উৎপাদন সুমাকর পদ্ধকত। এই উ য় পদ্ধকত বযবহার িতর
জাতীয় আয় পকরমাতপর বেতে কিেু সমসযা বদখতত পাওয়া যায়। বসগুকল কনতন আতলাচনা িরা হল।
আয় সুমারী পদ্ধকতর সমসযাঃ
1 . উপাজিনিারী এিি কচকন্হতিরতর্র সমসযাঃ- ারততর নযায় জনবহুল বদতে সিল উপাজিনিারী এিিতি কচকন্হতিরর্ এিটি
দুরূহ ও সময় সাতপে িাজ।
2 . সঠিি ততেযর অ াবঃ- অতনিসময় এিতির প্রিৃ ত উপাজিন জানা সম্ভব হয়না, িারর্ ির ফাাঁকি বদওয়ার উতেতেয এিি তার
আয় িম বদখায়।
3 . কমশ্র আতয়র সমসযাঃ- বিান বিান উপাজিনিারী এিি এিাকিি উৎস বেতি আয় িতর োতিন। এই জতীয় আয় বি কমশ্র আয়
বতল। কমশ্র আতয়র বেতে সঠিি তেয অতনিসমতয়ই পাওয়া যায় না।
4 . ববআইকন আয়ঃ- অববি উৎস বেতি প্রাপ্ত আয় িখনই প্রিাে িরা হয়না, ফতল বসই আতয়র ইসাব জতীয় আতয়র বাইতর োতি।
5 . হস্তান্তর আয় ও মূলিনী লা ঃ- আয়সুমারী পদ্ধকততত এই দু প্রিার আয় বাদ কদতত হয়। এই বাদ বদওয়ার বেতেঅতনিসময়
নানা িরতর্র সমসযা বদখা বদয়।
উৎপাদন সুমারী পদ্ধকতর সমসযাঃ-
1 . অসাংগঠিত বেেঃ- সমগ্র অেিনীকততত বয অসাংখয অসাংগঠিত বেে রতয়তে, তাতদর বেতে তাতদর প্রিৃ ত উৎপাদতনর বিান সঠিি
পকরসাংখযান পাওয়া যায় না।
2 . সীকমত বযবহারঃ- পকরতষবা প্রদান িারী সাংস্থাগুকলর বেতে এই পদ্ধকত প্রতয়াগ িরা সবসময় যায়না বতল এই পদ্ধকতর বযবহার
সীকমত।
3 . কবশ্বস্ত ততেযর অ াব: অতনি বেতেই ফামি ির ফাাঁকি বদওয়ার প্রবনতায় উৎপাদন সম্বতে সঠিি তেয প্রদান িতরনা।
4 . অন্তিকনকহত বযয়: অন্তকনিকহত বযয় সম্বতে সঠিি তেয পাওয়া সব সময় সম্ভব হয় না।
5 . অকবক্রীত পর্য: অকবক্রীত পতর্যর মূলয কি াতব কনরূকপত হতব তা কনতয় কবতিি রতয়তে।
িৃ কষতেতের জাতীয় আয় কনরূপতর্ সমসযা
অনুন্নত অেিনীকতগুকলতত প্রােকমি বেে বা িৃ কষ বেে সবিাতপো বড় হয়। কিন্তু এই িৃ কষতেে বেতি অকজিত আতয়র কনরূপতর্
কিেু সমসযা রতয়তে। বসগুকল কননরূপ,
1 . অনুন্নত অেিনীকততত বোট বা প্রাকন্তি িৃ ষতিরা অতনি সমতয়ই তাতদর উৎপাকদত পতর্যর পুতরাটাই কনতজরা ব াগ িতর োতি।
বযতহতু এই পর্য বাজারজাত হয়না এবাং িৃ ষিরা গকরব ও কনরের হওয়ায়, এই পতর্যর সকিি কহসাব িখতনাই পাওয়া যায় না।
2 . িৃ ষতিরা দকরদ্র ও অসাংগঠিত হওয়ায় তাতদর প্রিৃ ত উৎপাদন সম্বতে পাওয়া তেযও খুব এিটা কন ি রতযাগয হয়না।