2. PRESENTED BY - Dr. R. S. Dhankaria Course Director & Principal K.V. Khatkhati. On 27 th September 2010 at KV Dimapur related with three days workshop for PGT Economics.

3. National Income Accounts

4. The three methods of national income accounting

5. The circular flow of national income and expenditure

6. (1) Production (2) Incomes (3) Expenditure

7. Factor payments Factor payments Consumption of domestically produced goods and services (C d ) Consumption of domestically produced goods and services (C d ) The circular flow of income Firms Households

8. Factor payments Factor payments Consumption of domestically produced goods and services (C d ) Consumption of domestically produced goods and services (C d ) Investment (I) Government expenditure (G) Government expenditure (G) Export expenditure (X) Export expenditure (X) BANKS, etc Net saving (S) Net saving (S) GOV. Net taxes (T) Net taxes (T) ABROAD Import expenditure (M) Import expenditure (M) The circular flow of income WITHDRAWALS INJECTIONS

9. Factor payments Factor payments Consumption of domestically produced goods and services (C d ) Consumption of domestically produced goods and services (C d ) Investment (I) Government expenditure (G) Government expenditure (G) Export expenditure (X) Export expenditure (X) BANKS, etc Net saving (S) Net saving (S) GOV. Net taxes (T) Net taxes (T) ABROAD Import expenditure (M) Import expenditure (M) The circular flow of income WITHDRAWALS INJECTIONS

10.  Withdrawals  net saving  net taxes  import expenditure  Injections  investment  government expenditure  export expenditure

11.  GDP@MP  NDP@MP  GDP@FC  NDP@FC DOMESTIC INCOME  GNP@MP  NNP@MP  GNP@FC  NNP@FC NATIONAL INCOME

12. Methods of national income accounting (a) The product approach /Value Added Method

15. Methods of national income accounting (b) The income approach

17. Methods of national income accounting (c) The expenditure approach

20. Income from Domestic Product Accruing to Private Sector + Interest on National Debt + Current Transfer of Government + Current Transfer of Rest of the World + Net Factor Income from Abroad (NFIA) = Private Income

21. Private Income (-) Corporate Saving / Undistributed Profit (-) Corporate Tax / Corporate Profit Tax = Personal Income

22. (-) Personal Direct Taxes (-) Miscellaneous Government Receipt = Personal Disposal Income = Consumption + Savings

23. GNP@MP + Net Current Transfer from Rest of the World = Gross National Disposal Income

24. NNP @MP + Net Current Transfer from Rest of the World = Net National Disposal Income