unit 1 macro economics

lef\"V vFk'Z kkL= dk ifjp; 13 bdkbZ&1 INTRODUCTION TO MACRO ECONOMICS 1.1. MACRO ECONOMICS 1.1. 1.1.1. Introduction 1.1.1. The term „Macro‟ in English language has its origin in the vaxzsth ds 'kCn dh mRifŸk xzhd Hkk\"kk ds 'kCn Greek language term „Makros’ which mean „large‟. Therefore, macro-economics studies economic problems ls gqbZ gS] ftldk vFkZ o`gr~ vFkok cM+k gAS blfy, lef\"V of the entire economy. vFkZO;oLFkk lexz vFkZ O;oLFkk dh vkfFkdZ leL;kvksa dk Macro-economics includes the study of aggregates or averages which cover the entire economy, such as total v/;;u djrk gSA employment, national income, national output, total investment, total consumption, total savings, aggregate lef\"V vFkZ’kkL= eas ;ksx ,oa vklS r dk v/;;u 'kkfey gS tks supply, aggregate demand, and general price level, wage level and cost structure. Alternatively, it is cumulative lexz vFkZO;oLFkk dks 'kkfey djrk gSA economics which examines the inter-relations among the various aggregates, their determination and causes of iw.kZ jkstxkj] jk\"Vªh; vk; jk\"Vªh; mRiknu] dqy fuos’k] fluctuations in them. Theory of income and employment is another name of macro-economics or dqy [kir] dqy cpr] dqy vkiwfrZ] dqy ek¡x rFkk lkekU; simply income analysis. It includes the problems of unemployment, economic fluctuations, inflation or eYw ; Lrj] etnwjh Lrj rFkk ykxr lajpuk vkfnA oSdfYid deflation, international trade and economic growth. :i ls ;g lap;h vFkZ'kkL= gS tks fofHkUu ;ksx ds e/; 1.1.2. Concept and Definition of Macro Economics ijLij lEcU/kk]sa muds fu/kkZj.k rFkk vfLFkjrk ds dkj.kksa dk Macroeconomics is the branch of economics that studies fujh{k.k djrk gSA lef\"V the behaviour and performance of an economy as a whole. Its main focus is on the aggregate changes in the economy vFkZ’kkL= dk nwljk uke gAS blesa csjkstxkjh] vkfFkZd such as unemployment, growth rate, gross domestic product and inflation. vfLFkjrk] eqnzkLQhfr vFkok voLQhfr] vUrjkZ\"Vªh; O;kikj According to Boulding, “Macro-economics theory is that rFkk vkfFkZd fodkl dh leL;k,¡ 'kkfey gSaA part of economics which studies the overall averages and aggregates of the system”. 1.1.2. According to Edward Shapiro, “Macro-economics deals lef\"V vFkZ'kkL=] vFkZ’kkL= dh og 'kk[kk gS tks ,d with the functioning of the economy as a whole”. vFkZO;oLFkk ds O;ogkj rFkk dk;Z dk lexz :i ls v/;;u djrh gSA ;g vFkZO;oLFkk eas leLr ifjorZu] tSls fd According to Ackley Gardner, “Macro-economics csjkstxkjh fodkl nj] ldy ?kjys w mRikn rFkk eqnkz LQhfr ij concerns with such variables as the aggregate volume of /;ku dsfUnzr djrk gAS the output of an economy, with the extent to which its resources are employed, with the size of national income Þlef\"V vFkZ’kkL= fl)kar vFkZ'kkL= and with the general price-level”. dk og Hkkx gS tks ç.kkyh ds lexz vkSlr rFkk ;ksx dk v/;;u djrk gSAß According to M.H. Spencer, “Macro-economics is concerned with the economy as whole or large segments ] ßlef\"V vFkZ'kkL= laiw.kZ of it. In macro-economics, attention is focused on such vFkZO;oLFkk dh dk;Z i)fr ls lEcfU/kr gSAß problems as the level of unemployment, the rate of inflation, the nation‟s total output and other matters of Þlef\"V vFkZ’kkL= ,d vFkZO;oLFkk ds mRiknu ds dqy economy-wide significance”. ifj.kke ds :i eas ,sls pjksa ds lkFk O;ogkj djrk gS ftlds lalk/ku mlds vk; ds lkFk jk\"Vªh; vk; dk vkdkj ,oa * lkekU; eYw ; Lrj ds lkFk dk;Z djrk gAS ß lef\"V vFkZ'kkL= dk lEcU/k vFkZO;oLFkk ds laiw.kZ vFkok foLr`r Hkkx ls gksrk gSA lef\"V vFkZ’kkL= esa csjkstxkjh ds Lrj eqnzkLQhfr dh nj] ns’k ds dqy mRiknu rFkk vU; leL;kvksa ij /;ku dsafUnzr fd;k tkrk gSA *

14 lef\"V vFkZ'kkL= 1.1.3. Nature of Macro Economics 1.1.3. lef\"V vFkZ’kkL= dh fofHkUu Á—fr dk fuEufyf[kr of.kZr The various natures of macro-economics is explained as fd;k x;k gS& under: 1) &og vof/k 1) Short-Run Nature of Macro-Economics: The time ftlesa u, la;=ksa ,oa ubZ e’khujh dks LFkkfir djds vFkok period in which production cannot be increased even by mRiknu dh rduhd esa ifjorZu djds mRiknu esa of` ) installing new plants or new machinery or by changing ugha dh tk ldrh gS] mls y?kq vof/k ds :i esa lanfHkZr the techniques of production referred to as short-run fd;k tkrk gSA lef\"V vFk'Z kkL= y?kq vof/k dk v/;;u period and macro-economics is a study of short-run gAS mu leL;kvksa ij vf/kd /;ku fn;k tkrk gS tks period. The emphasis is laid on those problems which oreZ ku ifjfLFkfr;ksa ls Li\"V :i ls çfrfcafcr gksrh gaSA are clearly reflected by the existing circumstances. 2) lef\"V vFkZ’kkL= 2) Study of Economy as a Whole: Macro-economics lexz vFkZO;oLFkk dk v/;;u djrk gSA ;g eq[; :i studies economy as a whole. It primarily deals with ls jk\"Vªh; vk; vFkok jk\"Vªh; mRiknu] dqy] miHkksx] national income or national output, aggregate dqy fuos’k] çHkkoh] ek¡x dher Lrj] iw.kZ jkstxkj] iw.kZ consumption, aggregate investment, effective jkstxkj ls de vkfn ls lEcfU/kr gSA demand, price level, full-employment, less than full- employment, etc. 3) 3) Macro-Economics – A Systematised and lef\"V vFkZ’kkL= esa eqnzkLQhfr rFkk Comprehensive Body of Thought: Macro- viLQhfr] rsth vFkok eanh] iw.kZ jkstxkj rFkk vYi economics involves the study of all the conditions of jkstxkj ds leLr fLFkfr;ksa dk v/;;u 'kkfey gSA bls inflation and deflation, boom and depression, full- vFkZ'kkL= esa eanh ds :i eas lanfHkZr fd;k tkrk gS employment and under-employment. It has been D;ksafd lkekU; fl)kar esa eanh rFkk csjkstxkjh dk referred to as an economics of depression alone, O;kid v/;;u fd;k tkrk gSA because an extensive study of depression and unemployment is made in general theory. 4) 4) Macro-Economics – Reformed Capitalism or Neo- f}rh; fo’o ;q) ls iwoZ vFkZO;oLFkk ij Liberalism: The feature that dominated the economy gkoh gksus okyh fo’ks\"krk vc vfLrRo esa ugha gSA orZeku prior to World War II are no more in existence. In le; eas lef\"V vFkZ’kkL= dk v/;;u orZeku le; dh current time, macro-economics study relates more to fo’ks\"krkvk]sa tSls fd& futh laifŸk] pquko dh LorU=rk] the present day features such as private property, ykHk ds mn~n’s ; rFkk ljdkjh gLr{ksi ls lEcfU/kr gSA freedom of choice, profit motive and government mfpr çdkj ls funZsf’kr ljdkjh gLr{ksi dks blds }kjk interventions. The well-directed government leFkZu çkIr gksrk gSA interventions get support from it. 5) Áfrf\"Br 5) Macro-Economics – A Monetary Economics: vFk’Z kkfL=;ksa dh ekU;rk Fkh fd /ku ek= fofue; ds ek/;e The classical economists believed that money is ds :i esa dk;Z djrk gAS og /ku ds lap;u dk;Z dks ugha functioned only as a medium of exchange. They did igpkurs FksA muds vulq kj] vkfFkdZ xfrfof/k;ksa esa /ku dh not recognise the storage function of the money. In dksbZ Hkwfedk ugha gAS blfy, mUgksaus vFkOZ ;oLFkk ds their view, money had no role in economic okLrfod dkjdksa ij vf/kd cy fn;k] ijUrq lef\"V activities and therefore put more emphasis on the vFkZ'kkfL=;ksa us vkfFkZd xfrfof/k;ksa dks çHkkfor djus esa /ku real factors of economy. But the macro economists dh Hkwfedk dks Lohdkj fd;k gSA mudk ekuuk Fkk fd /ku have accepted the role of money in influencing dh ekx¡ rFkk vkiwfrZ vkfFkZd xfrfof/k;ksa dks egŸoiw.kZ çdkj economic activities. They believed that demand and ls çHkkfor djrh gSA supply of money influences economic activities in significant manner. 6) ;g ç—fr eas laLFkkxr gS rFkk ;g fo’ks\"krk fo’o ds jktusrkvksa rFkk 6) Macro-Economics – Mainly Institutional: It is vFkZ’kkLf=;ksa ds fy, ,d ekxZn’kZd gSaA lef\"V vFkZ’kkL= institutional in nature and this feature is a guide for ds laLFkkxr dkjdkas eas ifjorZu gksus ls lef\"V vFkZ’kkL= politicians and economists of the world. A change in dh laiw.kZ lajpuk ifjofrZr gks tkrh gSA bls le>us ds the institutional factors of macro-economics will fy,] blds euksoSKkfud rFkk laLFkkxr dkjdksa ij change the entire structure of macro-economics. To fopkj djuk pkfg, blds fcuk lef\"V vFkZ'kkL= us understand it, one must consider its psychological and viuk okLrfod vfLrRo [kks fn;k gSA institutional factors and without this macro-economics lost its practical application. 7) &lef\"V vFkZ'kkL= us vkfFkZd {ks=ksa esa jkT; ds gLr{ksi dh Hkwfedk dks cgqr 7) Importance of State Intervention: Macro- egŸo fn;k gSA futh fuos’k esa deh dh lajpuk ds fy, economics has emphasised greatly on the role of state lkoZtfud fuos’k vR;f/kd okaNuh; gSA intervention in economic spheres. Public investment is most desirable for the composition of the short-falls * in private investment. *

lef\"V vFkZ'kkL= dk ifjp; 15 8) Crucial Role of Investment: Macro-economics states 8) lef\"V vFkZ’kkL= eas that a change in effective demand is the basis of the çHkkoh ek¡x eas ifjorZu jkstxkj eas ifjorZu dk vk/kkj gS change in employment where effective demand is tgk¡ çHkkoh ek¡x miHkksx dh ek¡x rFkk fuos’k dh ek¡x dependent on demand for consumption and demand ij fuHkZj djrh gSA blfy,] lef\"V vFkZ’kkL= eas fuos’k for investment. Therefore, investment plays an ,d egŸoiw.kZ Hkwfedk fuHkkrk gS] D;ksfa d fuos’k dk vFkZ important role in macro-economics as investment oLrq ds LVkWd eas o`f) rFkk iw¡thxr laifŸk dk fuekZ.k means increment in the stocks of goods and creation djuk gSA of new capital assets. 9) &vkfFkZd fo’ys\"k.k dh 9) Comparative Static Analysis: The three concepts of rhu vo/kkj.kk,¡ bl çdkj gaS& economic analysis are as follows: i) &,d fuf’pr le; ds fy, vkfFkdZ i) Static: For a given period of time, the study of ifjorZu ds ifj.kkeLo:i larqyu dh fLFkfr dk the conditions of equilibrium emerging from v/;;u vkfFkZd fo’ys\"k.k dk {ks= gSA economic variables is the sphere of economic analysis. ii) bl fo’ys\"k.k ds vUrxZr vkfFkZd pj esa ifjorZu ds dkj.k gq, u, larqyu ii) Comparative Static: Under this analysis, change dh fLFkfr eas ifjorZu dh ryq uk iwoZ larqyu dh in the new equilibrium position due to the change fLFkfr ds lkFk dh tkrh gAS in one economic variable is compared with the old equilibrium position. iii) çks- fgDl ds vuqlkj] ßvis{kk ds mi;ksx dh rhozrk lef\"V vkfFkZd fo’ys\"k.k ds xfr’khy gksus iii) Dynamic: According to Prof. Hicks, the dk dkj.k gSA bu vis{kkvksa dk fuos’k udnh jkf’k intensity of the usage of “expectations” is the rFkk xq.kd vkfn ij çHkko gksrk gSA la{ksi ea]s ;g reason for the macro-economic analysis being dgk tk ldrk gS fd lef\"V vFkZ'kkL= eas LFkSfrd dynamic. These expectations have their effects on rFkk xfr’khy fo’ys\"k.k nksuksa dk rRo gSA investment, cash balances and multiplier, etc. In short, it can be said that macro-economics has an 10) element of both static and dynamic analysis. lef\"V vFkZ'kkL= dh okLrfod fo’ks\"krk 10) Macro-Economics-Based on Firm Empirical fofHkUu vFkZ'kkfL=;ksa }kjk çekf.kr dh xbZ gS rFkk ;g Foundation: The realistic feature of macro- okLrfod vuqHkoksa ij vk/kkfjr gSA blds dkuwu ç—fr economics is proved by many economists and it is esa çk;ksfxd gS rFkk orZeku usrkvksa ds fy, based on practical experiences. Its laws are practical fn’kk&funZs’k gSaA in nature and are the guidelines for the present day politicians. 11) lef\"V vFkZ’kkL= dks lkekU; fl)kUr ds :i eas tkuk tkrk gSA 11) Macro-Economics – General Theory: There are i) lef\"V vFkZ'kkL= eas jkstxkj ds lHkh Lrjksa dk three important reasons why macro-economics is v/;;u fd;k tkrk gSA bleas csjkstxkjh] iw.kZ known as general theory: jkstxkj] vYi jkstxkj rFkk iw.kZ jkstxkj ij i) The studies of all levels of employment are done fopkj&foe’kZ fd;k tkrk gAS in macro-economics. It discusses unemployment, full-employment, under-employment and over ii) jkstxkj rFkk csjkstxkjh ds lkFk eqnzkLQhfr rFkk full-employment. voLQhfr ij ppkZ dh tkrh gS tks çHkkoh ek¡x ij vk/kkfjr gksrh gSaA csjkstxkjh rFkk viLQhfr ml ii) Inflation and deflation are discussed along with le; gksrh gS tc çHkkoh ek¡x eas deh vkrh gS employment and unemployment which are based rFkk çHkkoh ek¡x esa o`f) gksus ls jkstxkj rFkk on effective demand. Unemployment and eqnzkLQhfr gksrh gSA deflation are occurred when effective demand decreases and over employment and inflation are iii) lef\"V vFkZ’kkL= }kjk dqy jkstxkj] dqy mRiknu occurred when effective demand increases. rFkk vU; dqy pj eas ifjorZu dk v/;;u fd;k tkrk gSA iii) The changes in total employment, total output and other aggregative variables are studied by 12) &miHkksx rFkk macro-economics. miHkksx O;; ds euksoSKkfud igyqvksa ls lEcfU/kr dkuwu dk lef\"V vFkZ’kkL= esa cgqr egŸp gSA bl 12) Role of Consumption and National Income: The çdkj] lef\"V vFkZ'kkL= eas miHkksx] cpr] jkstxkj] law pertaining to psychological aspect of fuos’k vkfn ls lEcfU/kr vko’;d lkaf[;dh; vk¡dM+s consumption and consumption expenditure is of great miyC/k djkdj jk\"Vªh; vk; ds v/;;u ij vR;Ur significance in macro-economics. Thus the study of cy fn;k tkrk gSA national income is greatly emphasized in macro- economics by making available the necessary * statistical data related to consumption, saving, employment, investment etc. *

16 lef\"V vFkZ'kkL= 1.1.4. Scope of Macro Economics 1.1.4. lef\"V vFkZ’kkL= ds vUrxZr 'kkfey igyw fuEufyf[kr gaS& The aspects included under macro-economics are as follows: Scope of Macro-Economics ¼lef\"V vFkZ'kkL= dk {ks=½ Theory of Income and Employment Theory of General Prices Level ¼vk; rFkk jkstxkj dk fl)kUr½ ¼lkekU; ewY; Lrj dk fl)kUr½ Theory of Economic Growth Modern Theory of Distribution ¼vkfFkdZ fodkl dk fl)kUr½ ¼forj.k dk vk/kqfud fl)kUr½ 1) Theory of Income and Employment: Macro- 1) &lef\"V vFkZ’kkL= vk; economics helps to know the factors required in the rFkk jkstxkj ds Lrj ds fu/kkZj.k eas vko’;d dkjdkas dks determination of the income and employment level. igpkuus eas lgk;rk djrk gAS ;g dkjd dqy ek¡x }kjk These factors are determined by the aggregate fu/kkfZ jr gksrs gSaA dqy ek¡x dqy miHkksx ek¡x rFkk dqy demand. Aggregate demand refers to the summation fuos’k ek¡x ds ;ksx dks lanfHkZr djrh gSA blfy, of total consumption demand and total investment lef\"V vFkZ’kkL= ds nks eq[; ?kVd & mi;ksx Qyu demand. Therefore, the two main components of rFkk fuos’k Qyu gaSA lef\"V vFkZ’kkL= O;kikj pØ ds macro-economics are consumption function and fl)kUr dks Hkh /;ku esa j[krk gSA investment function. Macro-economics also takes into consideration the theory of trade cycle. 2) &lef\"V vFkZ’kkL= dk v/;;u lkekU; dher Lrj fu/kkZfjr djus eas lgk;rk 2) Theory of General Prices Level: The study of djrk gSA lkekU; dher Lrj ij /;ku dsfUnzr djus ds macro-economics helps to decide the general price fy, eq[; rÙo eqnzkLQhfr gSA ;g lef\"V vFkZ’kkL= dk level. The main consideration needed to be focused in çeq[k ?kVd gSA blesa eqnzk] cSafdax rFkk foÙk ls lEcfU/kr general price level is inflation. It is also the major fl)kUr 'kkfey gSaA component of macro-economics. It includes various theories like money, banking and finance. 3) vkfFkZd fodkl dk fl)kUr Hkh lef\"V vFkZ’kkL= dh eq[; 'kk[kk gSA vkfFkZd 3) Theory of Economic Growth: The theory of fodkl ds fy, fofHkUu fl)kUr fodflr fd, x, gaSA economic growth is also the main branch of macro- bl fl)kUr ds vUrxZr] vFkZ’kkL=h vkfFkZd fodkl dh economics. There are various theories developed for nj dks c<k+ us ds ek/;e dks fu/kkZfjr djus eas lgk;rk the economic growth. Under this theory, the economists djrs gaS] D;kfsa d ;g thou Lrj dks c<k+ us rFkk lekt esa help to determine the way to increase the rate of xjhch dks de djus eas ,d egÙoiw.kZ fu/kkZjd gSA economic growth because it is an important determinant in increasing the standard of living and in reduction of 4) &lekt ds fofHkUu oxkZsa the poverty in the society. ds e/; n’s k dh jk\"Vªh; vk; dks vkaofVr djus ds fy, fofHkUu fof/k;ksa dk mi;ksx fd;k tkrk gSA lef\"V 4) Modern Theory of Distribution: There are many vFkZ’kkL= dk v/;;u çR;sd O;fDr;ksa dh lkis{k methods used to allocate the national income of the Hkkxhnkjh dks tkuus esa lgk;rk djrk gSA country among the different classes of society. The study of macro-economics helps to know the relative share of each people. 1.1.5. Importance of Macro Economics 1.1.5. lef\"V vFkZ’kkL= ds v/;;u dk eq[; egÙo fuEufyf[kr gS& The main importance of the study of macro-economics is as follows: 1) 1) Helpful in Understanding the Functioning of an &viuh fofo/krk ds dkj.k vk/kqfud vFkZO;oLFkk Economy: Modern economy has become very vR;Ur tfVy gks xbZ gSA blfy,] vFkZO;oLFkk ds complex due to its diversification. Therefore, to fofHkUu ?kVdkas dh ijLij&fuHkZjrk rFkk çHkkoksa dks understand the interdependence and influences of le>us ds fy, vFkZO;oLFkk ds dk;Z dks le>uk various components of economy, it has become vko’;d gks x;k gSA necessary to understand the working of an economy. 2) &lexz :i ls vFkZO;oLFkk dh 2) Study of National Income: The overall leLr le> jk\"Vªh; vk; rFkk dY;k.k dk;ZØeksa ds comprehension of the economy as a whole is b\"Vre~ Lrj dks yf{kr djus okyh uhfr;ksa dks :ikafdr imperative to formulate the policies targeting an djus ds fy, vfuok;Z gSA lef\"V vFkZ’kkL= bUgsa le>us optimum level of national income and welfare eas lqfo/kk Ánku djrs gSaA programs to have an effective impact. Macro- economics facilitates in understanding these. * *

lef\"V vFkZ'kkL= dk ifjp; 17 3) Formulation of Economic Policy: In modern days 3) &vk/kqfud le; esa] ljdkj before making the economic policies, government vkfFkZd uhfr;k¡ cukus ls iwoZ jk\"Vªh; vk;] dqy takes into consideration the national income, total jkstxkj] fuos’k dh de] lkekU; dher Lrj rFkk employment, investment deficiencies and scope, cpr nj dks /;ku esa j[krh gSA ;g ,slh uhfr;ksa ds general price level and saving rates. This makes the fuekZ.k ds fy, lef\"V vFkZ’kkL= ds v/;;u dks study of macro-economics desirable for formulating okaNuh; cukrk gSA such policies. 4) &lef\"V vFkZ’kkL= vFkZO;oLFkk 4) Study of Trade Cycles: Macro Economics is eas ena h rFkk rts h ds dkj.kksa rFkk budks okaNuh; lhek helpful in understanding the causes of slow-down ds vUrxZr j[kus ds ek/;e dks le>us eas lgk;d gSA and accelerations in the economy and the ways to blfy,] O;kikj pØ dqy ek¡x] miHkksx] jkstxkj ds Lrj keep these under desirable limits. Therefore, how the ls fdl çdkj çHkkfor gksrk gS] bls le>uk vfuok;Z gSA trade cycle is influenced by the aggregate demand, blds fy,] lef\"V vFkZ’kkL= dk v/;;u vR;Ur consumption, employment levels are necessary to vko’;d gSA be understood. For this, the study of macro economics is quite helpful. 5) &eqnzk dh Ø; 'kfDr lkekU; Lrj dks çHkkfor djrh gSA lef\"V vFkZ’kkL= ds 5) Change in the General Price Level: The v/;;u ls fu.kZ; fuekZrkvksa dks çfrdwy çHkko de djus purchasing power of money undergoes changes eas lgk;rk çkIr gksrh gS] ;g vkfFkZd fLFkjrk lqfuf’pr continuously impacting the general price level. The djrh gSA ftldk Áfrdwy ÁHkko mRiUu gksrk gAS blls study of macro-economics facilitates the decision cpus okys gkfu gksrs gSa rFkk ;g vkfFkZd fLFkjrk makers in minimising their impact, reversing the lqfuf’prk Ánku djrh gSA adverse effects causing avoidable harms and to ensure economic stability. 6) &lef\"V vFk’Z kkL= dk v/;;u vkfFkZd fodkl ds okafNr b\"Vre Lrj dks çkIr djus rFkk cuk, 6) Economic Growth: The study of macro economics j[kus ds fy, uhfr;ksa dk fuek.Z k djus esa lgk;rk djrk gSA helps in formulating the policies to achieve and sustain the desired optimum level of economic growth. 7) &lexz i;koZ j.k ds e/; O;fDrxr bdkb;k¡ lef\"V vkfFkZd 7) Helpful in the Study of Micro Economics: The dkjdksa }kjk fufeZr gksrh gSaA blhfy,] O;f\"V bdkb;ksa dh individual units function within the overall environment dk;Z&i)fr rFkk fofu;eu dks lef\"V vFkZ’kkL= ds is created by the macro economic factors. Therefore, the v/;;u }kjk lqfo/kktud cuk;k x;k gAS functioning and regulation of micro units are facilitated by the study of macro economics. 8) &lkexzh dY;k.k esa o`f) vFkok fxjkoV dk lVhd eki vk;] miHkksx rFkk 8) Estimate of Material Welfare: The accurate jkstxkj ds Lrj dks le>s fcuk lEHko ugha gks ldrk measurement of the rise or fall in material welfare gSA lef\"V vFkZ’kkL= bls le>us esa gekjh lgk;rk cannot be possible without understanding the djrk gSA aggregates of income, consumption and level of employment. The macro economics helps us in 9) &lef\"V vFkZ’kkL= ds v/;;u ls understanding these. çfr vk; dh nj] fuos’k nj] fofHkUu vFkZO;oLFkk dh miHkksx rFkk cpr Lrj dh ryq uk dh tkrh gSA lef\"V 9) International Comparisons: Comparison of rate of vkfFkZd fo’ys\"k.k ds ek/;e ls fofHkUu n’s kksa dh fofue; per capita income, investment-rate, consumption and nj dk fu/kkZj.k lEHko gSA saving levels of different economies is done through the study of macro-economics. Determination of 10) vk/kqfud fo’o eas] vkfFkdZ fu;kstu exchange-rates of different countries is possible dk egÙo gSA ,d mi;qDr vkfFkZd ;kstuk ds fy,] through macro-economic analysis alone. fofHkUu vuHq kkxksa ds e/; ijLij&fuHkZjrk rFkk ijLij fØ;k dh xgjh ig¡qp gksuk okaNuh; gAS th- Mh- ih- dk 10) Economic Planning: In the modern world, economic la;kstu] lajpuk] xjhch dh ç—fr tks lef\"V vFkZ’kkL= planning has gained importance. For a suitable dk Hkkx gS] geas ;kstuk cukus esa lgk;rk djrk gSA economic plan, it is desirable to have an insight into the interdependence and interaction among the 11) ;g Lohdkj various segments. The compositions of the GDP, its djuk lcls egÙoiw.kZ gS fd vFkZO;oLFkk ds fofHkUu {ks= structure, nature of poverty which is the part of macro ,d nlw js dks çHkkfor djrs gSaA dkbs Z Hkh vuqHkkx vyxko economics helps in planning. dh fLFkfr eas dk;Z ugha djrk gSA blfy, lef\"V vFkZ’kkL= dk v/;;u fuos’k ds Lrj rFkk jkstxkj ds 11) Inter-Relationship among Different Sectors: It is ijLij&vuqHkkx dks le>us eas vR;Ur lgk;rk djrk gSA most important to acknowledge that various segments of economy influence each other. No * segment functions in isolation. Therefore, the study of macro-economics is of great help to understand the inter-segmental influences of the level of investment and that of employment. *

18 lef\"V vFkZ'kkL= 12) Helpful in Understanding Macro Economic 12) Paradox: These contradictory trends refer to the principles which may hold good in the economy as ;g fojks/kkRed ço`fÙk mu fl)karksa dks lanfHkrZ a whole but may not be working for individual djrh gS tks vFkZO;oLFkk esa lexz :i ls mfpr idM+ cuk units and vice-versa. In short, macro-economics is ldrs gSa ijUrq O;fDrxr bdkb;ksa rFkk blds foijhr dk;Z of great importance to understand various factors ugha dj ldrs gSaAla{ksi es]a jk\"Vªh; vFkZO;oLFkk esa fofHkUu such as aggregate demand, aggregate investments dkjd ldy ek¡x] ldy fuos’k rFkk jk\"Vªh; vFkOZ ;oLFkk esa and the level of employment in the national jkstxkj ds Lrj dks le>us ds fy, lef\"V vFkZ’kkL= dk economy. It also helps us to accede to the fact that cgqr egÙo gAS ;g bl rF; dks Lohdkj djus esa lgk;rk all these factors are inter-related. djrk gS fd leLr dkjd ijLij vr% lEcfU/kr gSaA 1.1.6. Limitations of Macro Economics 1.1.6. lef\"V vFkZ’kkL= dh eq[; lhek,¡ fuEufyf[kr gSa& The main limitations of macro economics are as under: 1) &lef\"V vFkZ’kkL= ds 1) Dependence on Individual Units: Several conclusions fofHkUu fu\"d\"kZ O;fDrxr bdkb;ksa dh dqy jkf’k ij of macro economics are based on the sum total of vk/kkfjr gSaA okLro ea]s ;g mfpr ugha gS] D;ksfa d individual units. In fact, it is not correct, because what is O;fDr ds fy, tks lp gS vko’;d ugha fd lEiw.kZ true for individuals may not necessarily be true for the vFkZO;oLFkk ds fy, mfpr gksA whole economy. 2) lef\"V vFkZ’kkL= dk v/;;u fo\"ke 2) Heterogeneous Units: Macro economics studies are bdkb;ksa ds ;ksx ij vk/kkfjr gSaA gkyk¡fd okLrfod based on the aggregates of heterogeneous units. fo’o eas bUgsa fofÒUu Ádkj ls ekik tkrk gS rFkk blesa Whereas, in the real world these are measured in lVhdrk dk mfpr Lrj ugha gksrk gSA okLrfod different manners and may not have the exact level of vFkZO;oLFkk esa gekjs ikl dkbs Z le:i bdkbZ ugha gSA accuracy. In there is reality, no homogeneous units in the economy. 3) 3) Composition of Structure of the Aggregate is more lef\"V vFk’Z kkL= lexz Important than the Aggregate itself: Macro- ij vk/kkfjr g]S u fd lexz dh fofHkUu lajpuk ijA economics is based on the aggregates and not on the fofHkUu lajpuk lexz fo\"d\"kZ ds :i esa gks ldrk gAS different structures of the aggregates. The same aggregates with a different composition may be in the 4) lef\"V vFkZ’kkL= lEiw.kZ :i conclusions itself. ls vFkZO;oLFkk eas lewg ds çHkko dk v/;;u djrk gS] ijUrq fofHkUu vuqHkkxksa eas lewg vyx&vyx O;ogkj 4) Different Effects of Aggregates: The macro- djrs gSaA ;g fu\"d\"kZ ds vuçq ;ksxksa dks dqN lhek rd economics studies the effect of aggregates in the lhfer djrk gSA economy as a whole. But, the aggregates in different segments behave differently. It limits the applications 5) ;|fi] lef\"V vFkZ’kkL= ds fl)kUr of conclusions to that extent. cgqr rkfdZd gSa] ijUrq okLrfod fo’o esa ;g fcYdqy leku fLFkfr eas ykxw ugha gksrs gSaA fl)kUr rFkk 5) Limited Application: Though the theories of macro- vH;kl eas fHkUurk,¡ gksrh gSaA leqPp; dks ekius eas economics appear quite logical but in practical world, dfBukbZ blds vuqç;ksx ij ,d cM+h lhek yxkrh gSA these do not apply in the exactly similar fashions. There are variations in theory and practice. The 6) okLrfod difficulty in measuring the aggregates imposes a big fo’o eas O;fDrxr bdkb;kas ds fy, fu.kZ; fy, tkrs gaS limitation on its application. rFkk muds leqPp; geas leku fu\"d\"kZ rd ugha ys tk ldrs gSaA lef\"V vFkZ’kkL= ek= leqPp; dks /;ku esa 6) Ignores the Contribution of Individual Units: In j[krk gS rFkk O;fDrxr bdkb;ksa dh fofo/krkvksa dh real world, the decisions are taken for individual units mis{kk djrk gSA and their aggregates may not lead us to the identical conclusions. Macro-economics takes into account only the aggregates and ignores the variations of individual units. 1.1.7. Difference between Micro- 1.1.7. Economics and Macro-Economics Basis of Difference Micro-Economics Macro-Economics 1) Objective The twin objective of the micro-economics The key objectives of macro-economics are * is to bring about ¼O;f\"V vFkZ’kkL= ds nks eq[; total employment, inflation control, mn~n’s ; gSa½& economic growth and positive balance of *

lef\"V vFk'Z kkL= dk ifjp; 19 i) Enhancement of utility on the demand payment (BoP) of a country. ¼lef\"V side, and ¼ek¡x dh mi;ksfxrk eas o`f) vFkZ’kkL= ds çeq[k mn~ns’; iw.kZ jkstxkj] djuk] rFkk½] eqækLQhfr fu;U=.k] vkfFkZd fodkl rFkk fdlh ii) Reduction in costs with profits on the n’s k ds Hkqxrku larqyu dks cuk,a j[kuk gSaA½ supply side. ¼vkiwfrZ i{k esa ykHk ds lkFk ykxr esa o`f) djuk½A Out of the driving forces behind the micro- The foremost driving forces behind the economics, the most significant one is macro-economics are national income, output „price mechanism‟, which is governed by and employment. These are governed by the the market forces of demand and supply. aggregate demand and aggregate supply 2) Driving Forces These forces together create equilibrium conditions prevailing in the market. ¼lef\"V price in the market. ¼O;f\"V vFkZ’kkL= ds ihNs vFkZ’kkL= ds ihNs eq[; cyksa eas jk\"Vªh; vk;] eq[; cyksa eas ls lcls egÙoiw.kZ ,d dher mRiknu rFkk jkstxkj gAS ;g foi.ku esa r=a gS tks ek¡x rFkk vkiwfrZ ds foi.ku cyksa çpfyr dqy ek¡x rFkk dqy vkiwfrZ dh fLFkfr;ksa }kjk fu;af=r gksrk gSA ;s cy feydj foi.ku ls fu;af=r fd, tkrs gSaA½ eas larqfyr dher fu/kkZfjr djrs gSaA½ “Ceteris paribus” is the primary There are a number of assumption in macro- assumption in micro- economics theory, economics, which are influenced by various which is a Latin phrase meaning “all other factors, e.g., ¼lef\"V vFkZ’kkL= eas fofHkUu things being equal” This assumption is in /kkj.kk,¡ gSa tks fofHkUu dkjdksa ls çHkkfor gSaA relation to the consumer behaviour. i) Aggregate volume of the output of an 3) Assumptions ¼“Ceteris Paribus” O;f\"V vFkZ’kkL= fl)kUr economy, ¼,d vFkZO;oLFkk ds mRiknu ¼ekU;rk,¡½ eas çkFkfed /kkj.kk gSA ;g ,d ySfVu okD;ka’k ii) dk dqy ek=k½] The amount to which the resources are gS ftldk vFkZ gS ^^vU; lHkh oLrq,¡ leku engaged, ¼lalk/kuksa dks layXu djus ds gaSA** ;g /kkj.kk miHkksDrk O;ogkj ds lEcU/k fy, jkf’k½] eas gS½ iii) The size of the national income, and ¼jk\"Vªh; vk; dk Lrj] rFkk½] iv) The general price level. ¼lkekU; eYw ; LrjA½ The time factor is not taken into The time factor is an important component of consideration in the theory of micro- the macro-economics theory, as a lot of economics. However, at a particular time emphasis is laid on time factor such as 4) Subject-Matter the equilibrium period is stirred. That is delays, changes in rates, past and future ¼fo\"k; oLrq½ precisely the reason of micro-economics values of different variables. ¼le; dkjd being viewed as a steady approach. ¼O;f\"V lef\"V vFkZ’kkL= fl)kUr dk ,d egÙoiw.kZ vFkZ’kkL= ds fl)kUr eas le; dkjd ij /;ku ?kVd gSA le; dkjd] tSls& foyEc] nj eas ugha fn;k tkrk gSA gkyk¡fd] ,d fo’ks\"k le; ifjorZu] Hkfo\"; ds fofHkUu pj ds vrhr rFkk ij larqyu dh vof/k esa xfr gksrh gSA ;g Hkfo\"; ds ewY; ij /;ku fn;k tkrk gSA½ fuf’pr :i ls O;f\"V vFkZ’kkL= ds dkj.k gksrk gS] ftls ,d fLFkj –f\"Vdks.k ds :i esa tkuk tkrk gAS ½ 1.2. MACRO-ECONOMIC 1.2. PARADOXES 1.2.1. lef\"V vFkZ’kkL=] vFkZ’kkL= dh og 'kk[kk gS tks lEiw.kZ vFkok 1.2.1. Introduction lexz ds :i ls vkfFkZd ç.kkyh ds v/;;u ls lEcfU/kr gS] tcfd O;f\"V vFkZ’kkL= O;fDr;k]sa lewgksa rFkk QeZ ds O;ogkj Macro-economics is a branch of economics which deals with eas fu.kZ; ysus rFkk lalk/kuksa ds vkoaVu ds v/;;u ls the study of economic system as a whole or its large lEcfU/kr gSA bl ifjHkk\"kk ds çdk’ku esa dqN yksx lksp aggregates while micro-economics deals with study of individuals, groups and firms‟ behaviour in decision making * and allocation of resources. In the light of this definition some people may think that the study done in the micro-economics *

20 lef\"V vFkZ'kkL= can be generalised to form the basis for determining the ldrs gaS fd O;f\"V vFkZ’kkL= eas fd, x, v/;;u dks lexz behaviour of large aggregates like aggregate consumption, miHkksx] lexz cpr rFkk lexz fuos’k ds fu/kkZj.k ds fy, aggregate saving, and aggregate investment. vk/kkj ds :i esa mi;ksx fd;k tk ldrk gS But, this thinking has not any sense at all. The results ijUrq] bl lksp dk dksbZ vFkZ ugha gSA O;fDr;ks]a Qeks± rFkk achieved from the behaviour of individuals, firms and m|ksxksa ds xfrfof/k;ksa ls çkIr ifj.kkeksa dks jk\"Vªh; vk;] industries cannot be generalised by adding, multiplying jkstxkj vkfn tSls lef\"V vFk’Z kkL= pj çkIr djus ds fy, and averaging to get the macro-economic variable like tksM+] xq.kk rFkk vkSlr }kjk lkekU;h—r ugha fd;k tk national income, employment etc. In reality, the things ldrk gSA okLro eas os oLrq,¡ tks O;fDrxr Lrj ds fy, which may be true for individual level are not necessarily mfpr gks ldrh gSa] vko’;d ugha fd og vFkZO;oLFkk ds true for the economy as whole. So generalising the micro- fy, Hkh mfpr gkaAs blfy, O;f\"V vkfFkZd xfrfof/k dks economic behaviour to the macro-economic aggregates lef\"V vkfFkZd xfrfof/k cukuk xyr gksrk gS rFkk ifj.kke will be wrong and the results may be misleading. Due to Hkzked gks ldrs gaSA bl dkj.k ls] lEiw.kZ :i ls vkfFkZd this reason, it is necessary to make a separate study of ç.kkyh dk ,d vyx v/;;u djuk rFkk foLr`r leqPp; ds economic system as a whole and derive the conclusion for fy, fu\"d\"kZ fudkyuk vko’;d gSA ;fn dkuwu rFkk large aggregates. If the laws and generalisations are lkekU;hdj.k O;fDrxr Lrj ij lgh gS] ijUrq vkfFkZd correct at the individual level but are incorrect or invalid ç.kkyh ds fy, xyr ,oa vekU; ugha gS rks ,slh fLFkfr dks for the economic system as whole then such situation is known as paradoxes. ds :i esa tkuk tkrk gSA Such paradoxes were termed as macro-economic bl çdkj ds fojks/kkHkkl dks cksfYMax }kjk lef\"V vkfFkZd paradoxes by Boulding. The presence of these paradoxes are the reason which make the study of whole economic fojks/kkHkkl dgk tkrk FkkA bl fojks/kkHkkl dh mifLFkfr ds system or its large aggregates mandatory, separate from the study of micro economic analysis. Prof Boulding has dkj.k lEiw.kZ vkfFkZd ç.kkyh vFkok foLr`r leqPp; dk rightly said that the most important purpose to study the macro-economic variables is the presence of these v/;;u vfuok;Z gksrk gAS ;g O;f\"V vkfFkZd fo’ys\"k.k ds paradoxes. Although other factors are also responsible but the most important is the existence of paradoxes. The v/;;u ls fHkUu gAS us mfpr gh dgk gS study is not made to make the inventory or list of particular items but to make analysis of large aggregates. lef\"V vkfFkZd pj dk v/;;u djus dk lcls egÙoiw.kZ To explain the concept Professor Boulding has compared mn~n’s ; bu fojks/kkHkklksa dh mifLFkfr gSA gkyk¡fd vU; the economic system with a forest and individual firms with the trees of forest. According to him, it is right that dkjd Hkh mÙkjnk;h gSa] ijUrq lcls egÙoiw.kZ fojks/kkHkkl dk the forest is the aggregation of trees but the properties, nature and behaviour pattern of the forest is not same as vfLrRo gSA v/;;u fo’ks\"k oLrqvksa dh oLrqlwfp vFkok lwph that of the individual trees in the forest. It will lead to invalid conclusions if the behaviour pattern of individual cukus ds fy, ugha] cfYd cMs+ leqPp; dk fo’ys\"k.k djus ds trees will be generalised to drive the behaviour of the forest. The need of study of separate branch of economics fy, fd;k tkrk gSA as macroeconomics was justified by Boulding on the due to presence of these macro-economic paradoxes. Based on bl /kkj.kk dks le>us ds fy, çksQslj us vkfFkZd the nature it is also termed as micro-macro paradoxes. ç.kkyh dh rqyuk cu rFkk O;fDrxr QeZ ds ou ds o`{kksa ds According to Boulding, there are important Micro-Macro Paradoxes that limit the applicability of microeconomic lkFk fd;k gSA muds vuqlkj] ;g mfpr gS fd ou o`{kksa dk theories to explain the behaviour of economy as a whole, these paradoxes are as follows: lewg gS] ijUrq ou ds xq.k] ç—fr rFkk O;ogkj dk iSVuZ ou 1) Cash Holding: As per this paradox, if the individuals ds O;fDrxr o`{kksa ds leku ugha gSA ;fn ou dh dk;iZ )fr in the economy have a tendency to hold the larger amount of cash it will increase the total individual dks pykus ds fy, O;fDrxr o`{kksa ds çca/ku Ák:i dks cash holding capacity but it does not have any impact on the stock of money in the economy as a whole. lkekU;h—r fd;k tk,xk rks ;g vekU; fu\"d\"kZ mRiUu djrk 2) Saving and Investment: As per this paradox, if the gSA bl lef\"V fojks/kkHkkl dh mifLFkfr ds dkj.k lef\"V major portion of the income will be saved and used for investment purpose then the income at individual level vFkZ’kkL= dh fofHkUu 'kk[kkvksa ds v/;;u dh vko’;drk dks will increase but from the point of economy as a whole the saving and investment behaviour will decrease the cksfYMax }kjk U;k;ksfpr dgk x;k FkkA ç—fr ds vk/kkj ij * bls O;f\"V& Hkh dgk tkrk gAS ] fofHkUu O;f\"V&lef\"V fojks/kkHkkl gaS tks lEiw.kZ vFkZO;oLFkk ds O;ogkj dks Li\"V djus ds fy, O;f\"V vkfFkZd fl)kUrksa dh mi;qDrrk dks lhfer djrs gSa ;s fojks/kkHkkl bl çdkj gaS& 1) bl fojks/kkHkkl ds vuqlkj] ;fn vFkZO;oLFkk esa O;fDr;ksa ds ikl vf/kd ek=k esa udnh j[kus dh ço`fÙk gS] rks ;g dqy O;fDrxr udnh /kkj.k {kerk eas o`f) djsxk] ijUrq lEiw.kZ vFkZO;oLFkk eas /ku ds LVkWd ij bldk dkbs Z çHkko ugha iM+rk gAS 2) bl fojks/kkHkkl ds vuqlkj] ;fn vk; ds vf/kdka’k Hkkx dh cpr dh tkrh gS rFkk fuos’k ds mn~n’s ; ls mi;ksx fd;k tkrk gS rks O;fDrxr Lrj ij vk; eas o`f) gksrh gS] ijUrq vFkZO;oLFkk ds vuqlkj] *

lef\"V vFkZ'kkL= dk ifjp; 21 amount of consumption and ultimately the aggregate lEiw.kZ cpr rFkk fuos’k xfrfof/k ls [kir rFkk ek¡x dh demand. When the aggregate demand will be reduced it ek=k de gks tkrh gSA ;fn dqy ek¡x eas deh gksrh gS rks will lead to reduction in the future prospect of blls Hkfo\"; eas fuos’k djus dh lEHkkouk eas deh gks investment and ultimately may result in the decreased tkrh gS rFkk var eas vkfFkZd ç.kkyh dh vk; eas deh gks income of the economic system as a whole. ldrh gSA 3) Profit and Wages: As per this paradox, the profit 3) bl fojks/kkHkkl ds vuqlkj] O;fDr and wages distributed to the individual depends upon their bargaining power. According to Boulding, ds ykHk rFkk etnwjh dk forj.k muds lkSnk djus dh however, it depends on “a combination of other factors, the most important of which are decisions of 'kfDr ij fuHkZj djrk gAS ] management to invest, i.e., to accumulate real assets, and the complex of the decision of the whole society gkyk¡fd] ;g vU; dkjdksa ds la;kstu ij fuHkZj djrk gS] about liquidity preference”. Boulding concludes, “It is these paradoxes, more than any other factors, ftueas ls egÙoiw.kZ çca/ku dk fu.kZ; yus k gS] vFkkZr~] which justify the separate study of the system as a whole, not merely as an inventory or list of vpy lEifÙk ,df=r djuk rFkk udnh rjthg ds ckjs particular items”. eas leLr lekt ds fu.kZ; dk dfBu gksuk gSA Þ 1.2.2. Keynesian Macro-Economic Paradoxes dk fu\"d\"kZ gS] Þ;g fojks/kkHkkl gS tks fdlh vU; dkjdksa According to Macro Paradoxes, the thing true for part may not be true for the whole. Various examples are ls vf/kd ek= ,d lwph vFkok fo\"k;&oLrq dh lwph ds present in the economy. Keynes has laid emphasis on the two of such examples - savings and wages on the :i dks ugh]a cfYd lEiw.kZ ç.kkyh ds vyx&vyx basis of which he had to apply the separate macro- economic approach. Keynes has stated the following v/;;u dks mfpr fl) djrk gSAß paradoxes: 1) Wage-Employment Paradox 1.2.2. 2) Paradox of Thrift lef\"V fojks/kkHkkl ds vuqlkj] tks pht ,d Hkkx ds fy, mfpr gks ldrk gS] og lEiw.kZ ds fy, mfpr ugha gks ldrk According to these paradoxes, the laws which may be fit gSA vFkZO;oLFkk esa blds fofHkUu mnkgj.k mifLFkr gSaA and valid for the behaviour at individual level may be unfit and the conclusions derived may be invalid or misleading bl çdkj ds nks mnkgj.kksa ij tkjs fn;k gS& cpr rFkk if they are applied to the behaviour at aggregate level. The etnwjh ftlds vk/kkj ij mUgkusa s fHkUu&fHkUu lef\"V reason behind this is that the behaviour of individual vFkZ’kkL= –f\"Vdks.k ykxw fd, gaSA dhUl us fuEufyf[kr components is different from the components of the fojks/kkHkklksa dks of.kZr fd;k gS& society as whole. As explained earlier this situation is 1) etnwjh&jkstxkj fojks/kkHkkl termed as macro-economic paradoxes. These paradoxes 2) ferO;; dk fojks/kkHkkl are the reason that mandates the study of macro-economic variables separately from the micro-economic variables. bu fojks/kkHkklksa ds vuqlkj] tks dkuuw O;fDrxr Lrj ds dk;Z ds fy, mfpr rFkk ekU; gks ldrs gaS] os ;fn lexz Lrj ds Therefore, it can be concluded that it is necessary to make dk;Z ds fy, ykxw fd, tkrs gaS rks og v;ksX; gks ldrs gSa the separate analysis for the macro-economics in order to rFkk fudkys x, fu\"d\"kZ vekU; vFkok Hkzked gks ldrs gSaA derive the correct conclusions of the study of economic bldk dkj.k ;g gS fd O;fDrxr ?kVdksa dk O;ogkj lekt system as whole. It does not mean that micro-economic ds ?kVdksa ls fHkUu gksrk gSA tSlk fd igys crk;k x;k gS fd theory does not have any importance. Neither of the two is bl fLFkfr dks O;kid vkfFkZd fojks/kkHkkl dgk tkrk gSA bu worthless both have their own importance and are fojks/kkHkklksa ds dkj.k gh lef\"V vFkZ’kkL= dk v/;;u O;f\"V complementary to each other instead of being competitor. vFkZ’kkL= ls vyx djuk vfuok;Z gksrk gSA In the two theories given by Keynes he dealt with different subjects. The first theory, wage employment paradox deals blfy,] ;g fu\"d\"kZ fudkyk tk ldrk gS fd lexz :i ls with the determination of income and employment in the vkfFkZd ç.kkyh ds v/;;u ds mfpr fu\"d\"kZ fudkyus ds fy, economy while the second, paradox of thrift deals with the lef\"V vFkZ’kkL= ds fy, vyx fo’ys\"k.k djuk vko’;d gSA explanation of relative prices of goods and factors. bldk vFkZ ;g ugha gS fd O;f\"V vkfFkZd fl)kar dk dkbs Z egÙo ugha gSA nksuksa eas ls dksbZ Hkh O;FkZ ugha gSA nksuksa dk 1.2.2.1. Wage-Employment Paradox Lo;a dk egÙo gS rFkk çfrLi/khZ gksus ds ctk; ,d nlw js ds iwjd gSaA dhUl }kjk fn, x, fl)kUrksa eas mUgksua s fofHkUu A.C. Pigou and other classical as well as neo-classical fo\"k;ksa ij ppkZ dh gSA çFke fl)kUr] etnwjh jkstxkj economists are of the opinion that when the wages and fojks/kkHkkl vFkZO;oLFkk eas vk; rFkk jkstxkj ds fu/kkZj.k ls employment are reduced at the time of depression will lEcfU/kr gS] tcfd f}rh; ferO;; dk fojks/kkHkkl oLrqvksa lead to increase in employment and ultimately the rFkk dkjdksa ds lkis{k eYw ;ksa dh O;k[;k ls lEcfU/kr gSA unemployment will be reduced and the situation of depression can be controlled. 1.2.2.1. rFkk vU; çfrf\"Br ,oa uo çfrf\"Br * vFkZ’kkfL=;ksa ds fopkjksa ds vuqlkj] tc eanh ds le; etnwjh rFkk jkstxkj eas deh vk tkrh gS rks jkstxkj eas o`f) gksrh gS rFkk var eas csjktxkjh de gks tkrh gS rFkk ena h dh fLFkfr dks fu;af=r fd;k tk ldrk gAS *

22 lef\"V vFkZ'kkL= There is not any doubt that when the wages of the blesa dksbZ lansg ugha gS fd tc O;fDr dh etnwjh de gks individual will be reduced the employment will be increased tkrh gS] rks ml m|ksx esa jkstxkj esa o`f) gksrh gSA O;f\"V in that industry. From the point of view of micro-economic vkfFkZd fl)kar ds –f\"Vdks.k ls Jfed dh ek¡x rFkk theory, there is an inverse relationship between the demand fu;ksftr Je dh la[;k esa foijhr lEcU/k gksrk gS] ijUrq for labour and number of labour employed. But this law bl dkuwu dks lexz :i ls vFkZO;oLFkk ds fy, lkekU;h— cannot be generalised for the economy as a whole. r ugha fd;k tk ldrk gSA ihxw rFkk vU; vFkZ’kkfL=;ksa According to the wage employment relationship explained }kjk etnwjh jkstxkj lEcU/k ds vuqlkj etnwjh esa deh by Pigou and other economist, the reduction in wages will gksus ls dqy ek¡x esa deh gksrh gS] D;ksafd etnwjh O;fDr;ksa result in decreased aggregate demand because wages acts as ds vk; ds :i esa dk;Z djrh gS rFkk i;kZIr Ø; 'kfDr ds the income of the individuals and in the absence of the vHkko esa vFkZO;oLFkk esa ek¡x Lopkfyr :i ls de gks sufficient purchasing power the demand will automatically tkrh gSA be reduced in the economy. dqy ek¡x esa deh ls lekt esa oLrqvksa ,oa lsokvksa dh ek¡x The reduction in aggregate demand will lead to decreased esa deh gksrh gS] tks fofHkUu m|ksxksa dks çHkkfor djrh gS demand for goods and services in the society as a whole rFkk tc oLrqvksa dh ek¡x de gks tkrh gS] rks m|ksx which will affect various industries. And when the deZpkfj;ksa dks dk;Z ls fudky nsrs gSa] D;ksafd Jfed dh demand will be decreased for the goods the industries will ek¡x ,d O;qRiUu ek¡x gS ftldk vFkZ gS fd Je dh ek¡x lay-off the employees from the job because the demand vFkZO;oLFkk esa oLrq dh ek¡x ij fuHkZj djrh gSA for labour is a derived demand which means that the demand for labour will depend upon the demand of the Jfed dh ek¡x esa fxjkoV esa jkstxkj ds volj esa deh goods in the economy. This decline in the demand for vkrh gS rFkk csjktxkjh esa o`f) gksrh gSA labour will decrease the opportunities for employment and the unemployment will be increased. us etnwjh&jkstxkj lEcU/k ds ckjs esa Lo;a dh jk; nh gAS ihxw us leFkZu fd;k fd osru esa lkekU; fxjkoV Pigou and Keynes gave their own opinion regarding the dk mi;ksx eanh dh fLFkfr dks fu;af=r djus ds fy, fd;k tk wage-employment relationship. Pigou supported that the ldrk g]S tcfd dhUl dk fopkj Fkk fd osru esa deh ls dqy general decline in the wage can be used to get the situation of ek¡x esa deh vkrh gSA Jfed dks Hkqxrku fd;k x;k osru ek= depression under control while Keynes was of the opinion mRiknu dh ykxr ds :i esa ugha cfYd Jfedksa dh vk; ds that reduction in the wage will result in decline of aggregate :i esa Hkh dk;Z djrk gS D;ksfa d vFkZO;oLFkk dk vaf/kdka’k Hkkx demand. The wages paid to the labour does not only acts as Jfed gSA vr% tc etnwjh esa deh gksxh rks Jfedksa dh vk; the cost of production but also as the income of the workers. de gks tkrh gS] ftlds ifj.kkeLo:i dyq ekx¡ esa deh gksrh As the majority of economy is workers so when there will be gSA tc dyq ek¡x esa deh gks tkrh gS rks m|ksxksa dks vf/kd decrease in the wages the income of workers will decrease mRiknu djus dh vko’;drk ugha gksrh gS tks m|ksxksa esa Jfed which in turn will reduce the aggregate demand. When the dh ek¡x dks de dj nsrk gS rFkk var esa vFkOZ ;oLFkk esa aggregate demand will be reduced then the industries need csjkstxkjh esa o`f) gks tkrh gAS not to produce more which will decrease the demand for the workers in the industries and ultimately increasing the 1.2.2.2. unemployment in the economy. ferO;; ds fojks/kkHkkl dks cpr ds fojks/kkHkkl ds :i eas Hkh tkuk tkrk gSA cpr ds fojks/kkHkkl ds vUrxZr vYikof/k esa 1.2.2.2. Paradox of Thrift cpr eas o`f) dk Hkfo\"; dh cpr ij udjkRed çHkko iM+rk gSA ;g fojks/kkHkkl vFkZO;LFkk dh dqy ek¡x ij vk/kkfjr gSA The paradox of thrift also known as paradox of savings says that an increase in the savings in the short-term will ;fn vFkZO;oLFkk eas O;fDr vf/kd cpr djus dk fu.kZ; ysrs have a negative impact on the future savings. This paradox gaS rks miHkksx eas Hkh deh gks tkrh gAS dhUl dk dguk gS fd is based on the aggregate demand driven economy. ena h ds le; cpr dh ço`fr ds fy, miHkksx Lrj dks de djuk gksrk gAS vYi miHkksx Lrj dk vkfFkZd fodkl ij When the individuals in the economy decide to save more udjkRed çHkko iM+rk gSA than the consumption will also be reduced. Keynes says that the tendency of saving at the time of recession then ferO;; dk fojks/kkHkkl ,d lef\"V vFkZ’kkL= fojks/kkHkkl gS they have to decrease their consumption level. The tks ;g v/;;u djrk gS fd ?kjsyw Lrj ij cpr lEiw.kZ decreased consumption level would have a negative vkfFkZd Lrj ls fHkUu gksrh gSA cpr og jkf’k gS tks impact on the economic growth. ifjokj }kjk vkdfLedrk ds le; mi;ksx djus ds fy, j[kh tkrh gS] ijUrq vFkZO;oLFkk ds –f\"Vdks.k ls nh?kZ Paradox of thrift is a macro-economic paradox which le; rd vR;f/kd cpr ls vk; esa deh vkrh gSAekuo studies that the savings at household level is different when lH;rk ds vkjEHk ls] cpr dks miHkksx dks U;wure Lrj it is at economic level as a whole. Saving is the amount kept by the households to use it at the time of contingency but in * long run from the point of view of economy as a whole excessive savings will result in the reduction in the income. From the beginning of human civilization, savings were *

lef\"V vFk'Z kkL= dk ifjp; 23 considered as a means of keeping the consumption at ij j[kus dk ,d lk/ku le>k tkrk gS] ijUrq blls minimum level but it did not provide the satisfactory results. larks\"ktud ifj.kke çkIr ugha gksrs gSaA mUgsa ;g crk;k They were told that savings done today will help in future if x;k fd vkt dh xbZ cpr Hkfo\"; esa fdlh Hkh vkdfLed any contingency occurs. fLFkfr esa lgk;rk djrh gSA On the basis of above, Keynes gave the concept of mijksDr ds vk/kkj ij] dhUl us ferO;; ds fojks/kkHkkl dh „paradox of thrift‟ according to which when the vo/kkj.kk nh] ftlds vuqlkj tc O;fDr lrdZ gksrs gSa rks os individuals are cautious, they do saving less or same as iwoZ dh Hkk¡fr de vFkok leku cpr djrs gSaA dhUl rFkk before. According to Keynes and various other classical fofHkUu çfrf\"Br vFkZ’kkfL=;ksa ds vuqlkj] cpr dh jkf’k economists, the amount of savings is totally dependent O;fDr }kjk vftZr vk; ij iw.kZ :i ls fuHkZj gksrh gAS cpr on the income earned by the individual. The rate of ij C;kt dh nj dk cgqr de çHkko iM+rk gAS dhUl dkuuw interest on the savings has a very little impact. Keynes ds leFkZu eas ugha FksA ^ls* }kjk fn, x, dkuwu ds vuqlkj] was not in the support of the Say‟s law. According to the ÞiwfrZ viuh ek¡x dk Lo;a fuekZ.k djrh gSß rFkk cpr ,oa law given by Say „supply creates its own demand‟ and in fuos’k ds lanHkZ esa ;g dgk tk ldrk gS fd O;fDr }kjk the context of savings and investment it can be said that cpr dh xbZ jkf’k dk iw.kZ :i esa fuos’k eas mi;ksx fd;k the amount saved by individuals are fully used in tkrk gS] ijUrq dhUl ds vuqlkj] cpr ds ifj.kkeLo:i investment. But Keynes was of the opinion that savings fuos’k ugha gksrk gS] D;kfsa d cpr rFkk fuos’kd ,d gh O;fDr do not result in investment because savers and investors ugha gksrk gSA mUgkuas s ;g Hkh dgk gS fd ;fn dkbs Z fo’ks\"k are not the same person. He further said that if a jk\"Vª cpr eas o`f) djus ds fy, /;ku dsfUær djrk gS rks particular nation will focus on increasing the savings it blds ifj.kkeLo:i xEHkhj fLFkfr mRiUu gksrh gSA ;g would result in some critical situation. It is not necessary vko’;d ugha gS fd ;fn cpr eas O;fDrxr Lrj eas o`f) gks that if the savings are increasing at an individual level jgh gS rks lkeqnkf;d Lrj ij Hkh o`f) gksxhA there will be also increased at community level. ,d O;fDr }kjk vf/kd cpr rFkk vYi miHkksx dk çHkko The impact of saving more and consuming less by an individual will be on the other individuals of the society lekt ds vU; O;fDr;ksa ij iM+rk gS] D;ksafd O;fDr ,d because the individuals are interdependent on one another. Any increase in the saving by one individual nwljs ij fuHkZj jgrs gSaA ,d O;fDr }kjk cpr esa o`f) will result in decrease in the income of another person because in order to increase the savings the djus ls nwljs O;fDr dh vk; esa deh vk tkrh gS] D;ksafd consumption level should be decreased and the saving will be reduced for the economy as a whole because cpr esa o`f) djus ds fy, miHkksx Lrj dks de djuk savings depends on the income earned. If a society decides to increase the savings then the actual savings, djuk iM+rk gS rFkk lEiw.kZ vFkZO;oLFkk ds fy, cpr de national income and employment will be reduced. Such paradox is called ‘paradox of thrift’. This is the reason gks tkrh gS D;ksafd cpr vftZr vk; ij fuHkZj djrh gSA that Keynes is of the opinion that savings may be beneficial at the individual level but if it is thought ;fn ,d lekt cpr esa o`f) djus dk fu.kZ; ysrk gS rks from society‟s point of view it can result in affecting the welfare of the society negatively. okLrfod cpr] jk\"Vªh; vk; rFkk jkstxkj de gks tkrk It can be shown with the help of following graph. In the gSA bl fojks/kkHkkl dks dgk graph, initial saving curve is shown by S1S1 and planned induced investment line is shown by Ip. Here investment tkrk gSA blh dkj.k ls dhUl dk fopkj gS fd cpr is no longer assumed as an independent factor but dependent on the income. E1 is the intersection point of the O;fDrxr Lrj ij ykHknk;d gks ldrk gS] ijUrq ;fn curve S1S1 and Ip and acts as point of equilibrium. bldk lekt ds –f\"Vdks.k ls fopkj fd;k tk, rks bldk If the people decides to save more and consume less the saving curve would shift to S2S2. Therefore, the planned ifj.kke lekt ds dY;k.k dks udjkRed :i ls çHkkfor saving will rise from E1Y1 to AY1. Due to reduction in the aggregate demand or aggregate expenditure the goods dj ldrk gSA produced may remain unsold and as a result the income will be declined. In such situation, the investment will bls fuEu xzkQ dh lgk;rk ls fn[kk;k tk ldrk gSA xzkQ decline until the planned saving is equal to planned ea]s çkjfEHkd cpr oØ dks S1 S1 }kjk n’kkZ;k x;k gS rFkk investment. The national income will move OY2 which is fu;kftr çsfjr fuos’k j[s kk dks Ip }kjk n’kkZ;k x;k gSA ;gk¡ fuos’k dks ,d Lor=a dkjd ds :i eas ugha cfYd vk; ij less than the initial income i.e., OY1. The actual saving will fuHkZj ekuk tkrk gSA E1 oØ S1 S1 rFkk Ip dk çfrPNsnu fcUnq gS rFkk larqyu fcUnq ds :i eas dk;Z djrk gSA move to E2Y2 from E1Y1 when people decide to save more. This is termed as paradox of thrift. ;fn yksx vf/kd cpr djus dk fu.kZ; yrs s gSa rFkk de * miHkksx djrs gSa rks cpr oØ S2 S2 eas LFkkukarfjr gks tkrh gSA blfy,] fu;ksftr cpr E1Y1 ls AY1 rd c<+ tkrh gSA dqy ek¡x rFkk dqy O;; eas deh ds dkj.k mRikfnr oLrq dh fcØh ugha gksrh gS] ftlds ifj.kkeLo:i vk; eas fxjkoV gksrh gAS bl fLFkfr e]sa fuos’k eas fxjkoV gksrh gSA tc rd fu;ksftr cpr ;kstukc) fuos’k ds cjkcj u gks jk\"Vªh; vk; OY2 dks LFkkukarfjr gks tkrh gSa tks çkjfEHkd vk;] vFkkZr~] OY1 ls de gSA ;fn O;fDr vf/kd cpr djus dk fu.kZ; yrs s gSa rks okLrfod cpr E1Y1 ls E2Y2 ij LFkkukarfjr gks tkrh gSA bls dgk tkrk gSA *

24 lef\"V vFkZ'kkL= More Saving Means Lower National Income ¼vf/kd cpr dk rkRi;Z U;wure jk\"Vªh; vk;½ Saving, ¼cpr fuos’k½ Initial Saving A S2 Investment E1 S1 ¼ÁkjfEHkd cpr½ Ip E2 Final Saving 0 Y2 Y1 National S2 Income ¼vafre cpr½ S1 ¼jk\"Vªh; vk;½ Figure 1.1: Paradox of Thrift The paradox of thrift opposes the general concept that “a ferO;; dk fojks/kkHkkl bl lkekU; vo/kkj.kk dk fojks/k penny saved is a penny earned”. It does not mean that djrk gS fd Þ,d iSlk cpkuk gh ilS k dekuk gAS ß bldk savings always result in reduction of the income, there are vFkZ ;g ugha gS fd cpr ls lnSo vk; eas deh gksrh gSA several other factors through which the national income gets fofHkUu vU; dkjd gS ftuds ek/;e ls jk\"Vªh; vk; çHkkfor affected. In the above graph if planned induced investment gksrh gSA mi;qZDr xkz Q eas ;fn fu;ksftr çsfjr fuos’k Åij shifts up then this would result in increased national dh vksj LFkkukarfjr gksrk gS rks blls jk\"Vªh; vk; eas o`f) gksrh gSA eku yhft, j[s kk Ip fcUnq ^A* ls oØ S2S2 ij income. Let us assume that line IP shifts above point A on LFkkukarfjr gks tkrh gS] ijUrq ckn eas fcUnq ds nkbaZ rjQ dV the curve on S2S2 but cuts the latter to the right of point A tkrh gS rks çkIr vk; eas o`f) gksrh gSA then the income derived will be increased. dhUl us vFkZO;oLFkk eas O;kikfjd ena h ds le; ferO;; ds Paradox of Thrift in Recession fojks/kkHkkl ds lkFk fofHkUu fnypLi rF;ksa ij /;ku fn;k gS Keynes has noticed many interesting facts with the tks fuEufyf[kr gaS& paradox of thrift at the time of recession in the economy. 1) O;kikfjd eanh ds le; esa cpr esa of` ) djus dh ço`fÙk us These are as follows: 1) Individual‟s tendency to save increase more at the miHkksx ds Lrj esa deh dh gS rkfd Hkfo\"; dh csjktxkjh tlS h vkdfLed fLFkfr ds fy, /ku dh cpr dh tk ldsA time of recession. They decrease their consumption level so as to save money for the future contingency 2) cpr lEiw.kZ vFkZO;oLFkk ds –f\"Vdks.k ls gkfudkjd gAS such as unemployment. cpr esa of` ) djus ls miHkksx Lrj de gksxk rFkk O;kikfjd eanh dh fLFkfr vR;f/kd ladViw.kZ gks tkrh gAS 2) Saving is harmful from the point of view of economy as a whole. Increase in the saving will decrease the 3) bl fojks/kkHkkl ds vuqlkj] fdlh O;fDr ds O;fDrxr consumption level and the situation of recession will –f\"Vdks.k ls vf/kd cpr djuk egÙoiw.kZ gS] ijUrq even be more dangerous. nh?kZ vof/k esa lEiw.kZ vFkZO;oLFkk ij bldk çfrdwy çHkko iM+rk gSA 3) According to this paradox, from the point of individual‟s personal perspective saving more is 4) ;g fojks/kkHkkl ml le; mfpr gksrk gS tc ljdkj important but it would have a bad impact in the long futh {ks= dh mPp cpr dh vof/k ds nkSjku m/kkj çkIr run for the economy as a whole. djuk pkgrh gSA ljdkj }kjk O;; fd;k x;k /ku futh {ks= ds miHkksx eas fxjkoV dks larqfyr djrk gSA 4) This paradox holds well when the government wants the borrowings during a period of higher private sector 5) ;g fojks/kkHkkl ^ls* fu;e dk leFkZu ugha djrk gS ftlds saving. The money spent by the government balances vuqlkj] ÞiwfrZ viuh ekx¡ dk Lo;a fuekZ.k djrh gAS Þ the decline in the consumption of private sector. 1) cpr eas o`f) gksus ls cSad jkf’k eas o`f) gksrh gS] ftlds 5) This paradox does not support the Say‟s law ifj.kkeLo:i m/kkj ds ek/;e ls fuos’k eas o`f) gks according to which “supply creates its own demand”. ldrh gSA Criticisms of Paradox of Thrift 2) ?kjys w cpr ds ifj.kkeLo:i ?kjys w eqækLQhfr de gks 1) The increased saving increases the bank balances which tkrh gS blfy, fu;kZr esa o`f) gksrh gSA fu;kZr eas o`f) gksus ls ek¡x esa o`f) gks ldrh gSA can result in increased investment by way of lending. 3) cpr ds o`f) ls dqy ek¡x eas deh vk;sxh rFkk bl 2) The increased domestic savings results in lower ?kVrh ek¡x ds ifj.kkeLo:i ewY; Lrj eas deh vk;sxhA domestic inflation so the exports are increased. tSls fd ewY; Lrj rFkk ek¡x ds e/; ,d foijhr lEcU/k Increased exports can increase the demand. gS] ek¡x varr c<+ tk;sxhA 3) The increased savings will decrease the aggregate * demand and this decreased demand will consequently result in decline in the price level. And as there is an inverse relationship between the price level and demand, the demand will be ultimately increased. *

lef\"V vFkZ'kkL= dk ifjp; 25 1.2.3. Other Paradoxes in Macro Economics 1.2.3. In addition to the wage-employment paradox and paradox etnwjh&jkstxkj fojks/kkHkkl rFkk ferO;; ds fojks/kkHkkl of thrift there are various other such paradoxes which are ds vfrfjDr vU; fofHkUu çdkj ds fojks/kkHkkl gSa] tks as under: fuEukuqlkj gS& 1) Paradox of Costs: According to paradox of cost, the 1) ykxr ds fojks/kkHkkl ds vuqlkj] decrease in the wage may increase the profits if dqN m|ksxksa }kjk viuk, tkus ij etnwjh esa deh ls ykHk adopted by few industries but if seen at macro level esa o`f) gks ldrh gS] ijUrq ;fn lef\"V Lrj ij ns[kk tk, the wage cut results in the decreased consumption rks etnwjh esa deh ds ifj.kkeLo:i miHkksx Lrj esa deh] level, reduced sales and ultimately the profit. fcØh esa deh rFkk ykHk esa deh gks tkrh gSA 2) Paradox of Public Deficit: The paradox of public 2) lkotZ fud _.k ds debt says that, when there is increase in the fojks/kkHkkl dk dguk gS fd ;fn ljdkjh ?kkVs esa of` ) gksrh government deficit then it can increase profitability gS] rks ;g QeZ dh ykHkçnrk esa o`f) dj ldrh gAS of the firm. The extent of change would depend on ifjoruZ dh lhek O;kikj ds larqyu ij ?kkVs ds çHkko ij the effect of the deficit on the balance of trade. fuHkjZ djrh gSA ,d vU; laHkkouk ;g Hkh gS fd ?kkVs esa There is one more possibility that increased deficit of` ) ls QeZ ds iuq xZBu vFkok detksj m|ksxksa dks leFkZu may reduce the incentives, subsidies for firms to djus ds fy, çnku dh tkus okyh çksRlkgu] lfClMh de restructure or a support to the weaker industries gks ldrh gS rFkk blds ifj.kkeLo:i m|ksxksa ds ykHk ij and that may result in the adverse effect on the çfrdwy çHkko iM+ ldrk gAS profit of industries. 3) blds 3) Paradox of Profit-led Demand: According to this, if the wages are reduced by an economy so as to vulq kj] ;fn ,d vFkOZ ;oLFkk }kjk etnwjh dks de fd;k decrease the price level then it can increase the demand in the international market and the economy tkrk g]S rkfd dher Lrj dks de fd;k tk lds rks ;g will be globally competitive. vUrjkZ\"Vªh; O;kikj esa ekx¡ esa o`f) dj ldrk gS rFkk But if every economy decides to do this, it can result in the reduction of the consumption that will vFkZO;oLFkk fo’o Lrj ij çfrLi/khZ gks tkrh gS ijUrq ;fn also decrease the demand and output. All countries cannot be more competitive to each other because çR;sd vFkOZ ;oLFkk bl çdkj djus dk fu.kZ; ysrh g]S rks world is a closed economy. There can be profit to the one country by the method of wage reduction blds ifj.kkeLo:i miHkksx esa deh vk ldrh gS ftlls but it cannot benefit the whole world. For example, the economy of Germany reduces wages ek¡x rFkk mRiknu esa deh vk ldrh gSA leLr ns’k ,d to increase the competitiveness in the international market. nwljs ds fy, vf/kd çfrLi/khZ ugha gks ldrs D;kfsa d ns’k 4) Paradox of Toil: This paradox explains that under ,d can vFkZO;oLFkk gAS etnwjh esa deh dh fof/k ls fdlh certain conditions, like zero nominal interest rate, deflationary pressures, and falling output, if every ,d ns’k dks ykHk gks ldrk g]S ijUrq blls lEiw.kZ ns’k dks person wants to work more, this would led to reduction in the wages and increased unemployment. ykHk ugha gks ldrk gSA teZuh dh At micro level increased working hours increases the income of the person but at macro level it can led to vFkOZ ;oLFkk us vUrjk\"Vhª ; O;kikj esa çfrLi/khZ esa of` ) djus increased unemployment. ds fy, etnwjh dks de dj fn;k gAS 5) Paradox of Debt: When an attempt is made by freezing or cutting the public expenditure to reduce 4) bl fojks/kkHkkl ds vuqlkj] the ratio of debt to GDP then it may result in dqN fLFkfr;ksa ds vUrxZr] tSls fd& ukeek= C;kt nj] increased debt weight. There are two effects that viLQhfr lEcU/kh ncko rFkk mRiknu eas deh] ;fn result in the change of ratio of debt to GDP. çR;sd O;fDr vf/kd dk;Z djuk pkgrk gS] rks blls i) The first effect is related to the fiscal policy of etnwjh eas deh rFkk csjkstxkjh esa o`f) gksrh gSA lw{e the government. The government has to issue Lrj ij dk;Z dh vof/k eas o`f) gksus ls O;fDr dh vk; new bonds with a primary budget deficit; the eas Hkh o`f) gksrh gS] ijUrq lef\"V Lrj ij blls debt will be decreased with a primary surplus. csjktxkjh esa o`f) gks ldrh gAS ii) The second effect is the snowball effect. 5) tc th-Mh-ih- rFkk _.k ds Under this it has two situations, on one hand vuqikr dks de djus ds fy, lkoZtfud O;; eas dVkSrh government has to pay-off the interest due on djus dk ç;kl fd;k tkrk gS rks blds ifj.kkeLo:i _.k eas o`f) gks ldrh gSA nks çHkkoksa ds ifj.kkeLo:i * _.k rFkk th-Mh-ih ds vuiq kr eas ifjorZu gks ldrk gAS i) çFke çHkko ls lEcfU/kr gSA ljdkj dks çkFkfed ctV ?kkVs ds lkFk u;k ck.M tkjh djuk gksxk( çkFkfed vf/k’ks\"k ds lkFk _.k de gks tkrk gSA ii) f}rh; çHkko LuksckWy çHkko gSA blds vUrxZr bldh nks fLFkfr;k¡ gSa& ,d rjQ ljdkj dks *

26 lef\"V vFkZ'kkL= current debt, which implies higher expenditure orZeku _.k ij C;kt dk Hkqxrku djuk iM+rk gS] and fresh debt while on the other hand, in case ftldk vFkZ mPp O;; rFkk u;k _.k gS] tcfd of growing economy the payment will signify njw h rjQ fodflr vFkZO;oLFkk dh fLFkfr esa Hkqxrku the decreased percentage of GDP. Therefore, th-Mh-ih- ds de çfr’kr dk |ksrd gSA blfy,] the snowball effect tends to reduce the debt LuksckWy çHkko _.k nj dks de djrk gS] tc weight when the growth rate is higher than the fodkl nj C;kt nj ls vf/kd gksrh gAS foijhr interest rate. Adverse will be the situation in fLFkfr eas çfrdwy fLFkfr gksrh gSA opposite case. 1.3. CIRCULAR FLOW OF 1.3. ECONOMIC ACTIVITIES 1.3.1. Introduction 1.3.1. ,d vkfFkZd xfrfof/k esa mRiknu] fofue; rFkk miHkksx dk An economic activity involves the coordination of leUo; 'kkfey gksrk gSA ,d O;fDr vFkok O;fDr ds lewg production, exchange and consumption. The buying and }kjk oLrqvksa rFkk lsokvksa dh Ø; rFkk fcØh vkfFkZd selling of goods and services by an individual or group of xfrfof/k dk ,d fujUrj çokg gksrk gSA vk; dk pØh; individual is a continuous flow of economic activity. The çokg mRiknu dh xfrfof/k dk ifj.kke gS tks vk; lt`u circular flow of income is the outcome of the rotation of the djrk gSA pØh; çokg ços’k ,oa çLFkku ds dkj.k ugha production which generates revenue. gksrk gSA Hkwfe] Je] iw¡th rFkk m|e’khyrk vFkZO;oLFkk ds çk—frd nqyZHk lalk/ku gSa] ftudk mi;ksx ,d QeZ }kjk The rotational flow is due to neither entry nor exit. Land, fd;k tkrk gSA vk/kqfud vFkZO;oLFkk esa fofHkUu çdkj dh labour, capital and entrepreneurship are the natural scarce oLrq,¡ mRikfnr dh tkrh gS rFkk oLrqvksa dks foi.ku esa resources of the economy which are utilised by a firm to foØ; fd;k tkrk gSA ,d vFkZO;oLFkk esa] nks çdkj ds produce. Variety of goods is produced in a modern economy çokg gksrs gSa& and goods are sold in the market. In any economy, there are 1) oLrqvksa ,oa lsokvksa rFkk lalk/kuksa dh following two kinds of flows: 1) Real Flow: The movement of goods and services xfrfof/k ftldk mi;ksx vFkZO;oLFkk ds fofHkUu foHkkxksa }kjk mRiknu dh çfØ;k esa fd;k tkrk gS] mls and the resources which are utilised in the process okLrfod çokg dgrs gSaA of production between different divisions of 2) vFkZO;oLFkk ds fofHkUu {ks=ksa ds e/; jktLo economy. ds çokg dks eqnzk ds çokg ds :i eas tkuk tkrk gSA 2) Money Flow: The flow of revenue between different çkjfEHkd pj.k eas] vFkZ’kkfL=;ksa us vk; rFkk O;; dh xfrfof/k sectors of economy is known as money flow. dh O;k[;k djus ds fy, ljy ekWMy dk mi;ksx djus dk lq>ko fn;k gS] D;kfsa d vk; rFkk O;; dh ;g ?kVuk At the initial stage, economists have suggested the okLrfodrk esa vR;Ur dfBu gSA vFkZO;oLFkk ds fuEufyf[kr application of simple models to explain the rotation of ik¡p {ks= vk; rFkk O;; ds çokg dks of.kZr djrs gaS& income and expenditure, as this phenomenon of income 1) ?kjys w {ks=] and expenditure is extremely difficult in reality. The 2) O;kolkf;d {ks=@QeZ] following five sectors of economy portray the flow of income and expenditure: 3) foÙkh; {ks=] 1) Domestic sector 4) ljdkjh {ks=] rFkk] 2) Business sector/Firms 5) fon’s kh {ks=A 3) Financial sector 4) Government sector, and bu ik¡p {ks=ksa dks vk; rFkk O;; ds fujUrj pØh; çokg 5) Foreign sector rFkk mRikn ,oa eqnzk ds çokg dh LFkkiuk ds mn~n’s ; ls fuEufyf[kr rhu ekWMyksa dks fu\"ikfnr djus gsrq ,dh—r These five sectors are integrated to execute the following fd;k x;k gS& three models for the purpose of establishing the 1) ?kjys w rFkk O;kolkf;d {ks= lfgr f}{ks=h; ekWMy] continuous circular flow of income and expenditure and the flow of product and money: 2) ?kjys ]w O;kikj rFkk ljdkjh {ks= lfgr f={ks=h; ekWMy] 1) Two sector model including the domestic and rFkk] business sector; 3) ?kjys ]w O;kikj] ljdkjh rFkk fon’s kh {ks= lfgr pkj {ks=h; ekWMy] 2) Three sector model including the domestic, business and government sector, and 4) ?kjys ]w O;kikj] foÙkh;] ljdkjh rFkk fon’s kh {ks= lfgr ik¡p {ks=h; ekWMyA 3) Four sector model including the domestic, business, government and the foreign sector. * 4) Five sector model including the domestic, business, financial sector, government and the foreign sector. *

lef\"V vFk'Z kkL= dk ifjp; 27 1.3.2. Types of Circular Flow 1.3.2. pØh; çokg ds çdkj fuEufyf[kr gSa& The following are the types of circular flow: 1) bleas mRiknu ds dkjdksa dk okLrfod 1) Product Flow: It involves the real flow of factors of çHkko 'kkfey gksrk gS] bls mRiknu çokg ds :i eas production or otherwise it is known as output flow. It tkuk tkrk gAS blesa fuEufyf[kr 'kkfey gSa& consists of: i) dkjd çokg] vFkkZr~] lsokvksa dk çHkko] i) Factor flow, i.e., flow of factor services. ii) mRikn çokg] vFkkZr~] oLrq ,oa lsokvksa dk çokgA ii) Product flow, i.e., flow of goods and services. 2) eqnzk ds çokg dks vk; çokg ds :i esa Hkh tkuk tkrk gSA blfy, ekSfæd vFkZO;oLFkk es]a mRiknu 2) Income Flow: Flow of money is also known as ds lalk/kuksa ds fujUrj çokg eas jktLo 'kkfey gksrk gS income flow. Hence in a monetary economy, the rFkk bu lalk/kuksa ds Hkqxrku ls vk;] vFkkZr~] eqnzk dh continuous flow of resources of production involves çkfIr gksrh gSA revenue and payment of these resources results in income generation i.e. money. Contrary to this, the blds foijhr] oLrqvksa rFkk lsokvksa ds mRiknu ij fd, expenditure incurred on the production of goods and x, O;; esa O;; dk çokg 'kkfey gSA vk; rFkk O;; dk services involves the flow of expenditure. ;g çokg foijhr fn’kk eas pØh; çokg gSA ,d gkFk ls nlw js gkFk esa eqnzk dk çokg ,d ikbi vFkok fctyh ds This flow of income and expenditure is a cyclic flow ikuh dks lfdZV ds ek/;e ls pykus ds leku gAS in an opposite direction. The flow of money from one hand to another hand is same as running of water in a 1.3.3. pipe or electricity through a circuit. O;olk; rFkk ?kjsyw {ks= vkfFkZd xfrfof/k ds pØh; çokg 1.3.3. Circular Flow of Macro-Economic dk xBu djrs gSa] tgk¡ O;olkf;d {ks= mRiknu ds mu Activity in Two Sector Economy dkjdksa dks fu\"ikfnr djrs gSa ftlds ifj.kkeLo:i dqy fcØh gksrh gS rFkk ?kjsyw {ks= mu lsok bdkb;ksa ds The business and domestic sector constitutes the mRiknu rFkk vkiwfrZ ds lalk/kuksa ds fy, mÙkjnk;h gksrs gSa circular flow of economic activity where the business rFkk miHkksDrk O;olk; {ks= }kjk mRikfnr vfUre mRiknu sector executes those factors of production which dk miHkksx djrs gSaA blfy, mRiknd O;kolkf;d {ks= esa results in the total output for sale, and the domestic vkfFkZd bdkb;k¡ gSa] tcfd miHkksDrkvksa dks ?kjsyw {ks= esa sector is responsible to the resources of production and vkfFkZd bdkbZ dgk tkrk gSA supply of those service units and consumers who consume the final output produced by the business vkfFkZd yus nsu tks O;kikj rFkk ?kjys w {ks= eas vkfFkZd xfrfof/k sector. Hence the producers are the economic units in dk ifj.kke gaS] ds ifj.kkeLo:i mRiknd rFkk miHkksDrkvksa the business sector, while the consumers are known as ds e/; nks çdkj ds ysu&nus gksrs gSaA economic units in the domestic sector. fuekZrk ds n`f\"Vdks.k ls] ;g yus &nus fuEu gSa& The economic transaction which is the outcome of the 1) ?kjys w {ks= ls mRiknu ds dkjdksa dks Ø; djukA economic activity taking place in business as well as the 2) mRikfnr mRiknu ?kjys w {ks= dks mRiknu dh dkjd domestic sector results in mainly two types of transactions, between the producers and consumers. From bdkb;ksa dh lgk;rk ls foØ; fd;k tkrk gSA miHkksDrk the producer‟s point of view, these transactions are: ds n`f\"Vdks.k ls] ;s ysunsu fuEufyf[kr :i eas gksrs gSa& 1) Purchase of units of the factors of production from the i) O;kikfjd {ks= dks bdkbZ dkjd dh fcØh djuk] domestic sector. rFkk] ii) O;kikfjd {ks= ls mRiknu dk vfUre mRikn Ø; 2) The output produced is sold with the help of factor units of production to the domestic sector. From the fd;k tkrk gSA consumer‟s point of view, these transactions are in the form of: pØh; çokg ds fuEufyf[kr eas oLrqvksa ,oa lsokvksa i) Sale of factor units to business sector, and ii) The final output of production is purchased from rFkk /ku dk çokg fn[kk;k x;k gS] tks vkfFkdZ ç.kkyh eas the business sector. yus &nsu ds dkj.k çkIr gksrk gSA fp= ls ;g Li\"V gS fd The following diagram of circular flow in Fig 1.2 shows the flow of goods and services and money which mRikndksa rFkk miHkksDrkvksa ds e/; dk yus &nsu vFkOZ ;oLFkk arises due to the transactions in the economic system. From the figure it is clear that the stated transaction ds nks {ks=ksa ds e/; çokg] vFkkrZ ~] vk; ,oa O;; dk /ku çokg between the producers and consumers equilibrates the flow between the two sectors of economy, namely; rFkk oLrvq ksa ,oa lsokvksa ds e/; okLrfod çokg dks lUrqfyr money flow of income and expenditure and real flow of goods and services. Usually the flow of money is djrk gSA lkekU; :i ls vFkZO;oLFkk eas eqnzk dk çokg opposite to the real flow in the economy. okLrfod çokg ds foijhr gksrk gSA * *

28 lef\"V vFkZ'kkL= DOMESTIC SECTOR ¼?kjsyw {ks=½ FIRMS ¼QeZ½ Figure 1.2: Circular Flow of Macroeconomic Activity The Fig 1.2 clearly shows the presentation of an assumed Li\"V :i ls ,d dkYifud vFkOZ ;oLFkk dh çLrqfr economy which is based on several simplified dks n’kkZrk gS] tks fofHkUu çdkj dh ljyh—r ekU;rkvksa ij assumptions. These assumptions are as follows: vk/kkfjr gSaA ;s ekU;rk,¡ bl çdkj gSa& 1) The economy is confined to national boundaries (a 1) vFkZO;oLFkk jk\"Vªh; lhekvksa ¼,d cUn vFkZO;oLFkk½ rd closed economy). gh lhfer gSA 2) Production is confined to business sector. 2) mRiknu O;kolkf;d {ks= rd gh lhfer gAS 3) Whatever produced is sold by the producers, 3) dqy mRikfnr oLrqvksa dks foØ; dj fn;k tkrk gS] therefore no requirement of inventory of goods on blfy, O;kolkf;d {ks= ds fy, oLrqvksa dh jgfr;k dk the business sector. dksbZ vko’;drk ugha gksrh gSA 4) Money earned is equal to money spent i.e. total 4) vftZr /ku] O;; fd, x, /ku ds leku gS] vFkkZr~] expenditure on consumption is in proportion to the miHkksx ij dqy O;; miHkksDrk }kjk vftZr vk; ds income earned by the consumers. Hence, the savings vuqikr eas gksrk gSA blfy,] ?kjsyw {ks= eas cpr 'kwU; gSA are zero in the domestic sector. 5) vFkZO;oLFkk esa ljdkjh gLr{ksi de gksrk gS] vFkkrZ ~] fdlh 5) Negligible Government operations in the economy i.e. çdkj dk ljdkjh O;; rFkk dj ugha yxk;k tkrk gSA no Government expenditure and levying of taxes done ;g /kkj.kk lgh vFkksZa eas crkrh gS fd ds Åijh These assumptions truly states that the amount of flow in the upper half of the figure (10.1) must vk/ks Hkkx esa çokg dh ek=k dks uhps ds vk/ks Hkkx esa çokg correspondingly match with the amount of flow in the lower half, explanation being simple. On the basis of dh ek=k ds lkFk eys [kkuk pkfg,] vFkkZr~] Li\"Vhdj.k ljy the above assumption, it follows that sales equalises the volume of production and income which should gksuk pkfg,A mijksDr ekU;rkvksa ds vk/kkj ij] fcØh mRiknu equalise with the volume of expenditure. This completes the circular flow of income and expenditure rFkk vk; dh ek=k dks leku djrh gS tks O;; dh ek=k ds unless and until disturbed by external forces. leku gksuh pkfg,A ;g ml le; rd vk; rFkk O;; ds Assumption in the Two-Sector Economy Following are the assumptions of the two sector economy; pØh; çokg dks iw.kZ djrk gS] tc rd bls cká 'kfDr;ksa 1) Whatever being produced by the firms, individuals }kjk ckf/kr ugha fd;k tkrk gSA spend all their income on purchasing goods and services. Therefore, no savings are promoted. f}{ks=h; vFkZO;oLFkk dh fuEufyf[kr ekU;rk,¡ gaS& 1) tks Hkh QeZ }kjk mRikfnr fd;k tkrk gS] O;fDr Lo;a dh 2) The demand of the domestic buyers is fully replaced with the goods and services that the firm leLr vk; ls oLrqvksa ,oa lsokvksa dks Ø; djrs gaSA produces, hence, no requirement of stocking the blfy,] cpr dks çkRs lkfgr ugha fd;k tkrk gAS goods. 2) ?kjys w Øsrkvksa dh ek¡x dks iw.kZ :i ls mu oLrqvksa ,oa lsokvksa ls ifjofrZr dj nh tkrh gS tks QeZ dk mRiknu 3) Whatever earned by the firms from the sale of goods djrh gSA blfy, oLrq ds jgfr;k dh vko’;drk ugha is properly distributed in the form of wages, salaries, gksrh gSA rent, interest and profits. Hence, the firm does not 3) oLrqvksa dh fcØh ls QeZ }kjk tks dqN Hkh vftZr fd;k hold any earnings. tkrk gS] og etnwjh] osru] fdjk;k] C;kt rFkk ykHk ds :i esa mfpr çdkj ls forfjr dj fn;k tkrk gSA 1.3.4. Circular Flow of Macro-Economic blfy,] QeZ fdlh çdkj dh vk; vftZr ugha djrh gSA Activity in Three Sector Economy 1.3.4. The involvement of the government sector makes the model more reasonable. The role of the government is ljdkjh {ks= dh Hkkxhnkjh ekWMy dks vf/kd mfpr cukrh more important as it is involved in several activities which gSA ljdkj dh Hkwfedk vR;f/kd egÙoiw.kZ gS D;ksafd ;g are as under: fofHkUu izdkj dh xfrfof/k;ksa esa 'kkfey gS] tks * *

lef\"V vFk'Z kkL= dk ifjp; 29 1) There are many sources from where the revenue is fufEufyf[kr vuqlkj gS& raised. The most significant source of revenue is taxes. Hence to analyse easily one assume that the taxes are 1) ,sls fofHkUu lzksr gaS tgk¡ ls jktLo lt`fr fd;k tkrk the only source of revenue for the government. These gSA jktLo dk lcls egÙoiw.kZ lzksr dj gSA blfy, taxes incorporate; ljyrk ls fo’ys\"k.k djus ds fy, ;g ekuk tk ldrk i) Taxes Imposed on the Domestic Sector: They gS fd ljdkj ds fy, dj jktLo dk ,dek= lzksr gSA are direct taxes like income tax or indirect bu djksa eas fuEufyf[kr 'kkfey gSa& taxes like sales tax and excise duties on i) ;g iRz ;{k dj consumer goods. tSls vk; vFkok vizR;{k dj tSls fcØh dj rFkk miHkksDrk oLrqvksa ij mRikn 'kqYd gSaA ii) Taxes Imposed on the Firms: These taxes are ii) ;g izR;{k dj] tSls& either direct taxes like corporate income tax or fuxfer vk; dj vFkok viRz ;{k dj] tSls& fcØh indirect taxes like sales tax and excise duties. dj rFkk mRikn 'kqYd gSaA Thus, T = TH + TF bl izdkj] T = TH + TF Where, tgk¡] T = total taxes, TH = taxes imposed on domestic sector. T = dqy dj TF = taxes imposed on the firms. TH = ?kjys w {ks= ij vf/kjksfir dj TF = QeZ ij vf/kjksfir dj 2) Expenditure on various heads is afforded by the 2) fofHkUu foHkkxksa ds O;; ljdkj }kjk ogu fd, tkrs gSa] government, which include government expenditures ftueas iz’kklu] U;k;] j{kk] fodkl] lkekftd dY;k.k on administration, justice, defence, development, xfrfof/k;ksa rFkk lfClMh vkfn ij ljdkjh O;; 'kkfey social welfare activities and subsidies etc. gSaA 3) ge ljdkjh O;;ksa dks pkj Jsf.k;ksa esa foHkkftr dj ldrs 3) We can divide the government expenditures into four gSa& categories as: i) ?kjys w {ks= esa] tgk¡ Hkqxrku l’kL= lsukvk]sa flfoy i) In the domestic sector, where payments are made lsokvksa rFkk vU; lsokvksa eas rSukr yksxksa dks fd;k to those who are deployed in armed forces, civil tkrk gSA services and others. ii) QeZ oLrq,¡ ,oa lsok,¡ iznku djus ds fy, Hkqxrku ii) Firms receive payments for providing goods and izkIr djrh gaSA services. iii) vFkZO;oLFkk ds dqN {ks=ksa eas oLrqvksa ,oa lsokvksa ds iii) Subsidies received by the firms for promoting mRiknu dks izksRlkfgr djus ds fy, QeZ }kjk ikz Ir production of goods and services in certain areas dh xbZ lfClMhA and sectors of the economy. iv) lkekftd lqj{kk rFkk dY;k.k ds fy, iznku dh tk iv) Subsidy being provided for social security and jgh lfClMh ftleas i’sa ku] csjkstxkjh {kfriwfrZ rFkk welfare which includes pensions, unemployment Hkqxrku ds vU; gLrkarj.k 'kkfey gSA compensation and other transfer of payments. blfy,] G = GH + GF + GS + GT Hence, G = GH + GF + GS + GT G = dqy ljdkjh O;;A GH = lsok,¡ iznku djus ds fy, ?kjys w {ks= Where, G = Total government expenditure, }kjk izkIr HkqxrkuA GF = oLrqvksa rFkk lsokvksa dh fcØh ds fy, GH = payment received by domestic sector for providing services. izkIr HkqxrkuA GS = ljdkj }kjk QeZ dks iznku dh xbZ GF = Payment received by firms for selling goods and services. lfClMhA GT = Lkkekftd lqj{kk rFkk dY;k.k ds fy, GS = Subsidies given to the firm by government. ljdkj }kjk fd;k x;k HkqxrkuA GT = Payments made by the government for larqfyr ctV tgk¡ ljdkjh O;; ljdkjh jktLo ds cjkcj social security and welfare. gksrk gS] vFkkZr~] G = T gksrk gS] izfrf\"Br vFkZ'kkfL=;ksa }kjk vuqx`ghr fd;k x;k FkkA blfy,] ljdkj ,d igpku dh Balanced budget where government expenditure equals xbZ bdkbZ ds :i esa larqfyr] ?kkVs vFkok vf/k’ks\"k ctV dk government revenue i.e. G = T, is favoured by classical vuqlj.k djrh gSA dj ds :i eas vk; dh jkf’k pØh; izokg economist. Hence, the government as an identified unit ls okil dj yh tkrh gSA ljdkjh O;; ds :i eas ;g iqu% follows a balanced, deficit or a surplus budget. izokg eas izos’k djrh gSA vkt orZeku fo’o eas] ljdkj }kjk ?kkVs ds ctV dk ikyu fd;k tkrk gSA vf/kdrj le; The amount of income in the form of taxes is withdrawn from the circular flow enters again in the flow in the form * of government expenditure. In today‟s world, deficit budget is being followed by the government. Most of the *

30 lef\"V vFkZ'kkL= time government expenditure exceeds government ljdkjh O;; ljdkjh jktLo ls vf/kd gksrk gS] vFkkZr~ revenue, G > T. The deficit is financed from the capital market in the form of loans. This type of budget suggests G > TA ?kkVs dks iw¡th O;olk; ls _.k ds :i esa foÙkiksf\"kr net injections and thus enhancing the circular flow of income. In a surplus budget, the government expenditure fd;k tkrk gAS bl izdkj dk ctV 'kq) batsD’ku dk lq>ko is less than their revenue or G < T. The implication of this type of budget is constricting the circular flow of income nrs k gS rFkk bl izdkj vk; ds pØh; ioz kg esa o`f) djrk due to withdrawals. Fig 1.3 shows circular flow of income in a three sector economy. gSA vf/k’ks\"k ctV eas] ljdkjh O;; jktLo O;; ls de gksrk gSA bl izdkj ds ctV dk fufgrkFkZ fudklh ds dkj.k vk; ds pØh; izokg dks ckf/kr djrk gSA ,d f={ks=h; vFkZO;oLFkk esa vk; dk pØh; Áokg n’kkZrk gS& Government Factor services Factor incomes Households Saving Capital Firms Market Investment Expenditure on goods and services Flow of goods and services Figure 1.3: Circular Flow of Income in a Three-Sector Economy The following figure depicts transactions of the economic fuEufyf[kr fp= eas ?kjys w {ks= rFkk ljdkjh {ks=ksa ds e/; factors between the domestic sectors and the government vkfFkZd dkjdksa ds ysunus dks n’kkZ;k x;k gS& sectors. The two sector economy holds true that: 1) ?kjys w {ks=ksa rFkk QeZ ds e/; ioz kg ds ifj.kkeLo:i 1) There will be a diversion in the government sector by ljdkjh {ks= eas ifjorZu gksrk gAS a part of the flow between the domestic sectors and the firms. 2) ?kjys w vk; ds ,d Hkkx dks dj ds :i eas ljdkjh {ks= 2) A part of domestic income will be diverted to eas LFkkukarfjr dj fn;k tkrk gSA government sector in the form of taxes. 3) A part of firm‟s (business) income will be diverted to 3) QeZ dh vk; dk ,d Hkkx dj ds :i esa ljdkjh {ks=ksa government sectors as taxes. dks LFkkukarfjr dj fn;k tkrk gSA 4) A part of government spending in the form of tax revenue on service and transfer payments is diverted 4) lsok rFkk gLrkarj.k Hkqxrku ij dj jktLo ds :i esa to the domestic sector, and ljdkjh O;; dk ,d Hkkx ?kjsyw {ks= esa Hkstk tkrk gS] 5) A part of government spending in the form of revenue as rFkk] expenditure on goods and subsidies is diverted to firms. 5) oLrq rFkk lfClMh ij O;; ds :i eas ljdkjh jktLo In addition, a flow of income between the government dk ,d Hkkx QeZ dks fn;k tkrk gAS sector and the capital market may also exist: 1) If there exists deficit budget in the government, where blds vfrfjDr] ljdkjh {ks= rFkk iw¡th O;kikj ds e/; vk; dk izokg Hkh gks ldrk gS& government expenditure is greater than the revenue, G 1) ;fn ljdkj esa ?kkVs dk ctV mifLFkr gS] tgk¡ > T. The loss will be financed from loans from the capital market. Thus, the flow of money will be from ljdkjh O;; jktLo ls vf/kd G > T gksrk gS rks capital market to the government sector. gkfu dks iw¡th O;kikj ls _.k ysdj foÙkiksf\"kr fd;k tkrk gSA bl izdkj] /ku dk izokg iw¡th O;kikj ls 2) Whereas, if government follows a surplus budget ljdkjh {ks= esa gksrk gSA and the government expenditure is less than the revenue, G < T. The flow of money will be from 2) ;fn ljdkj ,d vf/k’ks\"k ctV dk ikyu djrh gS the government sector to the capital market. The rFkk ljdkjh O;; jktLo ls de gksrk gSA vFkkZr~] G existence of this phenomenon is very rare in < T gSA eqnzk dk izokg ljdkjh {ks= ls iw¡th O;kikj today‟s world. esa gksrk gSA orZeku fo’o dh esa bl ?kVuk dk vfLrRo cgqr de gSA * *

lef\"V vFkZ'kkL= dk ifjp; 31 1.3.5. Circular Flow of Macro-Economic 1.3.5. Activity in a Four-Sector Economy bl fo’o e]sa ,d vFkOZ ;oLFkk LorU= :i ls mifLFkr ugha gks In this world, an economy cannot exist independently. ldrh gSA O;kikj ,d ek= dkjd gS tks vU; vFkZO;oLFkkvksa ds lkFk laidZ LFkkfir djrk gSA blfy, gekjk fo’ys\"k.k pkj {ks=h; Trade is a factor which establishes a link with the other vFkOZ ;oLFkk rd foLr`r gS ftlesa fons'kh {ks= Hkh 'kkfey gAS economies. Hence our analysis extends to a four sector economy where foreign sector is also included. Though, foreign sector is a multi-activity sector but our gkyk¡fd] fons'kh {ks= ,d cgq&xfrfof/k {ks= gS] ijUrq gekjh concentration is only on the import and export of goods ,dkxrz k ek= oLrqvksa rFkk lsokvksa ds vk;kr rFkk fu;kZr ij gS& and services: 1) oLrqvksa ,oa lsokvksa dh vkxeu gksus ds dkj.k vk;kr 1) Import being the inflow of goods and services leads to ?kjys w ns’k ds fuokfl;ksa ds O;; eas o`f) djrk gAS ;g the expenditure of the residents of the domestic country ,sls n’s k ds mRiknu ds dkjdksa dh vk; eas o`f) djrs gSa and vice-versa. It increases the income of the factors of tks oLrqvksa rFkk lsokvksa dk fu;kZr dj jgs gSaA blfy,] production of a country which is exporting goods and vk;kr ds dkj.k vk; ds cfgokZg ds ifj.kkeLo:i vk; services. Hence, the outflow of income due to imports ds pØh; izokg esa deh gksrh gSA results in the decrease in the circular flow of income. 2) os ns'k tks oLrqvksa ,oa lsokvksa dk fu;kZr djrs gSa] ftlds 2) The country which exports goods and services results ifj.kkeLo:i fon’s kh ns’k ds fuokfl;ksa ds O;; eas o`f) in the expenditure of the residents of the foreign gksrh gS rFkk oLrqvksa ,oa lsokvksa ds fu;kZr eas yxs ?kjsyw country leading to an increase in the earnings of the n’s k ds mRiknu ds rÙoksa dh vk; eas o`f) gksrh gSA bl elements of production of the domestic country izdkj vk;kr ds ifj.kkeLo:i vk; ds ioz kg esa o`f) engaged in the export of goods and services. Thus gksrh gSA import results into an inflow of income enhancing the circular flow of income. 'kk;n gh dHkh bl izdkj dh fLFkfr mRiUu gksrh gS tc fdlh n’s k dk fu;kZr vk;kr ds cjkcj gksrk gAS lkekU; :i Rarely does a situation occur where the exports of a ls fuEufyf[kr nks fLFkfr;k¡ laHko gaS& country equal to the imports. In general, following two 1) O;kikj dk izfrdwy larqyu rc gksrk gS tc fdlh ns’k dk situations are possible: 1) Adverse balance of trade occurs when exports of a fu;kZr vk;kr ls de gksrk g]S X < M ftlds ifj.kkeLo:i fons’kh O;kikj ?kkVs (M–X) ds cjkcj gksrk country are inferior to imports, X < M resulting in gSA tc vk;kr fu;kZr ls vf/kd gksrk gS vFkok fudklh ls foreign trade deficits equal to (M – X). When imports vf/kd gksrk gS] rks vk; ds pØh; izokg esa deh gksrh gSA are more than exports or withdrawals are more than infusions, there is a decrease in the circular flow of 2) tc Hkh fdlh ns’k dk fu;kZr mlds vk;kr ls vf/kd income. gksrk gS rks (x > m) fon’s kh O;kikj vf/k’ks\"k (x – m) 2) Whenever the exports of a country are more than its O;kikj ds izfrdwy larqyu ds leku gksrk gSA pw¡fd imports, X > M there will be a foreign trade surplus fu;kZr vk;kr ls vf/kd gksrk gS vFkok fudklh fu\"ksd ls equalising (X – M) or an unfavourable balance of vf/kd gaS] rks vk; ds pØh; izokg eas o`f) gksrh gSA trade. As exports take over imports or infusions are more than withdrawals, there will be an enhancement in the circular flow of income. Government Government Government expenditures Factor services expenditures and transfer Factor incomes and subsidies payments Households Saving Capital Firms Market Investment Expenditure on goods and * services Flow of goods and services Foreign Sector Market Figure 1.4: Circular Flow of Income in a Four-Sector Economy *

32 lef\"V vFkZ'kkL= Figure 1.4 depicts the circular flow of income in a four fp= eas pkj {ks=h; vFkZO;oLFkkvksa ds pØh; izokg dks sector economy. Figure 1.4 is an extension of figure 1.3 n’kkZ;k x;k gSA fp= 1-4 ?kjys ]w ljdkj rFkk fon’s kh {ks= ds describing the economic transactions between domestic e/; vkfFkZd ysu&nsu dk o.kZu djus okyh fp= 1-3 dk sector, government and the foreign sector. The lower part foLrkj gAS fp= 1-4 ds fuEu Hkkx eas fons’kh {ks= dk o.kZu of the figure 1.4 describes the foreign sector. The exports gSA oLrqvksa rFkk lsokvksa ds fu;kZr ls vk; ds pØh; izokg esa of goods and services increase the circular flow of income, o`f) gksrh gS] tcfd oLrvq ksa rFkk lsokvksa ds vk;kr ds pØh; whereas import of goods and services decrease the circular izHkko esa deh gksrh gAS flow of income. 1.3.6. Circular Flow of Income and 1.3.6. Expenditure in Five-Sector Economy vk; rFkk O;; ds ik¡p {ks=h; çokg dks ^ik¡p lsDVj ekWMy^ Five sector flow of income and expenditure is known as ds :i eas tkuk tkrk gS D;kfsa d ;g ekWMy ik¡p fHkUu&fHkUu „Five Sector Model‟ because this model focuses on five {ks=k]sa vFkkZr~ ?kjys w QeZ] foŸkh; ljdkjh rFkk fon’s kh {ks= ij dsafUnzr gSA different sectors i.e. households, firms, finance, government and overseas sector. Income (Y) = Wages + Interest + Dividends Households Labour Input Firms Goods and Services Output Consumption Expenditures (C) Savings (S) Investments (I) = Stock Purchases Taxes (T) + Loans Financial Sector Government Spending (G) Government Sector Imports (M) Exports (X) Overseas Sector Figure 1.5: Five Sector Flow of Income and Expenditure The savings are made by both household and firms. A cpr ?kjsyw {ks= rFkk QeZ nksuksa }kjk dh tkrh gAS ,d QeZ firm saves money when it earns profit but it declares tc ykHk vftZr djrh gS rks ;g eqnkz dh cpr djrh gSA only a small share of profit as dividend to the ijUrq ;g va’k/kkjdksa dks ykHkka’k ds :i eas ykÒ dk ek= ,d shareholders. This enable firm to raise the amount of NksVk Hkkx ?kksf\"kr djrh gSA ;g QeZ dks viuh foŸkh; fLFkfr retained earnings in their balance sheet. If in case, esa vftrZ vk; dh ek=k esa of` ) djus ds fy, l{ke cukrk gSA business is unable to use the whole amount of profit ;fn] O;olk; vftrZ ykHk dh laiw.kZ jkf’k dk mi;ksx djus esa earned then it can invest that amount in banks or any vleFkZ gksrk gS rks og ml jkf’k dks cSad vFkok fdlh vU; other financial institution. Both financial investment foŸkh; laLFkku esa fuos’k dj ldrk gAS foŸkh; fuos’k rFkk and real investment are different from each other. okLrfod fuos’k nksuksa ,d nwljs ls fHkUu gksrs gaSA foŸkh; fuos’k Financial investment is refers to investment in stocks, LVkWd] ckW.M] fMcspj vkfn esa fuos’k dks lanfHkZr djrk gS] bonds, debentures etc. whereas real investment includes tcfd okLrfod fuos’k esa jgfr;k] Hkou] midj.k] Hkwfe vkfn the investment in inventory, building, equipment, land esa fuos’k 'kkfey gSaA blds vfrfjDr] fofHkUu ?kjsyw {ks= edku etc. Additionally, various households take loan to vFkok tehu dk vf/kxgz .k djus ds fy, _.k ysrs gaS] D;ksfa d acquire house or land as they consider it as a best os blesa fuos’k dk lcls vPNk fodYi ekurs gSaA choice to make investment. fo|eku edku dks Ø; djus ds fy, ca/kd jkf’k dk mi;ksx The household can use the amount of mortgage loan for nwljs ?kjsyw {ks= ls vFkok fuekZ.k QeZ ls Ø; djus ds fy, purchasing an existing house either from another household mi;ksx dj ldrs gaSA blds vfrfjDr] vf/kd fuf/k çkIr djus or from the construction firm. Additionally, to generate more ds fy, QeZ va’k] ckW.M tkjh djrh gS vFkok cSad ls jkf’k m/kkj funds, firms issue shares, bonds or they borrow money from ysrs gaSA lkekU; :i ls ;g QeZ vU; QeZ ls okLrfod laifŸk the bank. Usually, these firms use borrowed amount for Ø; djus ds fy, m/kkj yh xbZ jkf’k dk mi;ksx djrh gAS purchasing the real assets from another firm. * *

lef\"V vFk'Z kkL= dk ifjp; 33 Other important flows of money are not reflected in the ik¡p {ks=h; ekMW y esa eqnkz ds vU; egŸoiw.kZ çokg dks bafxr ugha five sector model. For example, when government faces deficit then it borrows money from financial fd;k x;k gSA tc ljdkj dks ?kkVs dk sectors. Deficit means government expenditures are exceed the collected taxes i.e. T < G, (where, T means lkeuk djuk iM+rk gS rks og foŸkh; {ks= ls m/kkj ysrh gaSA ?kkVs taxes and G means government expenditure). Other, when the country faces trade deficits then the money dk vFkZ gS fd ljdkjh O;; ,df=r dj ls vf/kd gS ^vFkkZr~^ T comes back from the foreign sector in the form of loan to government and financial sectors. It can be indicated < G ¼tgk¡ Vh dk vFkZ gS dj rFkk th dk vFkZ ljdkjh O;; gaS½ as X < M (here, X means exports and M means import). Further, government spend money on public and it vU;] tc ns’k O;kikj ?kkVs dk lkeuk djrk gS rks enq zk fons’kh reaches to the households in the form of wages or benefits like social security. {ks=ksa ls ljdkj rFkk foŸkh; {ks=ksa dks _.k ds :i esa okil vkrk Similarly like households, firms also pay taxes and gAS bls X < M ¼;gka] ,Dl dk vFkZ fu;kZr rFkk ,e dk vFkZ purchase import. Hence, taxes (T), savings (S) and import (M) collectively are known as leakages (L) whereas, flow vk;kr gS½ ds :i esa n’kkZ;k tk ldrk gSA blds vfrfjDr] of money back to firm i.e. government expenditure (G), investment (I) and export (X) are known as injections (J). ljdkj turk ij jkf’k O;; djrh gS rFkk ;g lkekftd ljq {kk Real Investment Spending and Home Purchases tlS s etnwjh vFkok ykHk ds :i esa ?kjsyw {ks= rd ig¡qprh gS] vr% ?kjsyw QeZsa Hkh dj dk Hkqxrku djrh gSa rFkk vk;kr djrh gaSA blfy, dj ¼T½ cpr ¼S½ rFkk vk;kr (M) dks lkefw gd :i ls yhdst+ (L) ds :i eas tkuk tkrk gS] tcfd] QeZ esa /ku dk çokg vFkkZr~] ljdkjh O;; (G) fuos’k (i) rFkk fu;kZr (x) batsD’ku (g) ds :i esa tkuk tkrk gSA Mortgage Loans Financial Sector Stock Purchases and Loans HHoouusseehhoollddss Firms Existing Home New Home Real Investment Purchases Purchases Spending Figure 1.6: Real Investment Spending and Home Purchases 1) Non-Cash Flows: In this model, all the flows are 1) &bl ekWMy ea]s fuEufyf[kr nks fLFkfr;ksa dks NksM+dj vU; lHkh udnh çokg gS& cash flow except the following two cases: i) ,d QeZ ds Jfedksa }kjk dk;Z ij i) Labour Input: The total time spend on work by O;; gqvk dqy le; gksrk gSA the workers of the firm. ii) QeZ }kjk ?kjys w {ks= dks ii) Goods and Services Output: The goods and foØ; gksus okyh oLr,q ¡ ,oa lsok,¡A services sold by the firm to the households. 2) 2) Cash Flows i) vk; ?kjsyw {ks= QeZ ls çkIr /ku gSA vf/kdrj] i) Income (Y): The income is the money received vk; dk ;g Hkkx etnwjh vFkok osru ds :i esa by the households from the firms. Mostly, this gksrk gS] ijUrq ?kjsyw {ks= Hkh bl vk; dks C;kt rFkk part of income is in the form of wages or salary ykHkka’k ds :i esa çkIr djrs gaSA tc ?kjsyw {ks= ds but household also receives this income in the ikl QeaZ ds va’kksa dk LokfeRo gksrk gS] rks og ykHk form of interest and dividend. When the ij vfrfjDr ykHk çkIr djrh g]S gkykf¡ d ykHkka’k households possess the ownership of the stocks forfjr ugha fd;k tkrk gSA QeZ vforfjr ykHk dks of the firm they gain additional benefits on profit çfr/kkfjr vk; ds :i eas j[krh gS tks foŸkh; fLFkfr even though the dividend is not distributed. Firm esa n’kk;Z k x;k gksrk gS rFkk ;g QeZ ds vafdr ewY; retains the undistributed profits in the form of esa of` ) djrk gSA nwljs 'kCnksa esa] çfr/kkfjr vk; retained earning which is shown in the balance udnh çokg ugha g]S ijUrq ;g va’k/kkjdksa dh vksj ls sheet and it raises the book value of the firm. In QeZ }kjk dh xbZ cpr gSA blds vfrfjDr] daiuh other words, retained earnings are not a cash flow va’k/kkjdksa dks ykHk dk dqN Hkkx mUgsa ykHkka’k tkjh but it is a saving made by the firm on behalf of djds vFkok dqN va’kksa dks okil Ø; djds dj the shareholders. Further, firms can return some ldrh gAS blds vfrfjDr] QeZ vius ckW.M dks mu part of profit to shareholders either by issuing O;fDr;ksa dks foØ; dj ldrh gS tks cpr ilan them dividend or by buying back some stocks. djrs gaS rFkk va’k dks okil Ø; djus ds fy, çkIr Additionally, firm can sell its bond to those who udnh dk mi;ksx djrs gaSA prefer savings and use the generated cash to buying back the shares. * *

34 lef\"V vFkZ'kkL= ii) Consumption Expenditures (C): The ii) (C) miHkksx O;; fofHkUu oLrqvksa consumption expenditure is the money spent by rFkk lsokvksa dks Ø; djus ds fy, ?kjys w {ks= }kjk the household on buying various goods and O;; fd;k x;k O;; gSA lkekU;r% ?kjys w vk; dk services. Generally, a major portion of ,d foLr`r Hkkx miHkksx ij O;; fd;k tkrk gSA household‟s income is spent on consumption. 3) 3) Leakages/Withdrawals i) miHkksx O;; djus ds vfrfjDr] ,d ?kjys w i) Savings (S): Other than making consumption {ks= vk; ds dqN Hkkx dks cpr ds :i eas cpk expenditure, a household can save some ldrk gSA lkekU;r% ?kjys w {ks= cSad eas cpr [kkrksa portion of income as saving. Usually, ds ek/;e ls vFkok E;wpqvy QaM eas fuos’k ds households save money through saving ek/;e ls jkf’k cpk ldrs gSaA nlw jh rjQ] fofHkUu accounts in banks or through investing money ?kjys w {ks= dh ;g ekU;rk gS fd ?kj Ø; djuk ,d in mutual funds. On the other hand, various mfpr fuos’k gS] ijUrq ik¡p {ks=h; ekWMy eas O;; ds households also consider buying a house is a bl Hkkx ds ckjs eas fdlh çdkj dk Li\"Vhdj.k ugha good investment but no explanation about this fd;k x;k gSA blfy,] bl ifjn`’; eas ?kjys w {ks= part of expenditure is mentioned in five sector ,d QeZ dh Hkkafr dk;Z djrs gaS tgk¡ og ?kj Ø; model. Hence, in this scenario household act djus ds fy, _.k yrs s gaS rFkk i'pkr~ esa ?kj dks like a firm where they take loan to buy the iqu% fdjk, ij nrs s gSa] vFkok og bls vU; ifjokjksa house and later they either rent house back to vFkok Nk=ksa dks fdjk, ij ns ldrs gaSA bl itself or they can rent out it to other households fl)kUr ds vUrxZr] bl çdkj dh vFkZO;oLFkk gksus or students. Under this theory, there is a dh laHkkouk gS tgk¡ ?kjsyw {ks= lHkh ?kjksa ds Lokeh possibility of having such an economy where ds :i eas QeZ ls fdjk;k çkIr djrs gSA okLrfod household receives rents from firm as :i ls gSa fLFkfr laHko ugha gSa ijUrq fQj Hkh ;g household own all the houses. Practically, this fLFkfr ik¡p {ks=h; ekWMy ds fy, mfpr gSA situation is not possible but yet this situation fits in five sector model. ii) dqN yksx ,sls gksrs gaS tks Lo;a dks Lora=oknh dgrs gSa rFkk dj nus k ilan ugha djrs gSaA os ii) Taxes (T): There are some people who call ljdkj dks eqDr O;kikj ds ,d Hkkx ds :i eas ugha themselves as libertarians who don‟t like to n[s krs gSaA ljdkj dks ,d foLr`r la?k n’s k ds :i pay taxes and they don‟t see government as a eas ns[k ldrs gSaA blfy,] ;fn ,d O;fDr Dyc dh part of free market. lnL;rk j[krk gS rks mls dqN 'kqYd dk Hkqxrku djuk gksrk gS] ftls dj dgk tkrk gSA blds One can see government as a large country vfrfjDr] ;fn ,d O;fDr fdlh Dyc dh lnL;rk club. So, if a person holds membership of any ugha pkgrk gS rks og lnL;rk dks fLop dj ldrk club then he/she has to pay some fees which gS rFkk vU; n’s k dh ukxfjdrk çkIr dj rFkk vU; are called as taxes. Additionally, if a person n’s k dh ukxfjdrk çkIr dj ldrk gSA lj tkWu doesn‟t want the membership of any club then VEs iyVu] ,d çfl) fuos’kd] foŸkh; çca/kd rFkk he/she can switch the membership and gain the ijksidkjh O;fDr bldk ,d mfpr mnkgj.k gSaA citizenship of others country. Sir John Templeton, a famous investor, fund manager iii) (M) ik¡p {ks=h; ekWMy ds vUrxZr] QeZ dks and philanthropist was a good example of this. ?kjys w QeZ ds :i esa tkrk gS rFkk tc ?kjys w {ks= fdlh Hkh fons’k n’s k ls oLrq,¡ Ø; djrs gSa rks bls iii) Imports (M): Under the five sector model, firms ^fjlko^ fudklh ¼yhdst+½ ds :i eas tkuk tkrk gSA are assumed as domestic firms and when ?kjys w miHkksDrk ls miHkksx O;; ?kjys w QeZ ds fy, households purchases goods from any foreign vk; dk Lkkz sr gSA blds vfrfjDr ?kjys w QeZ ds country then it is known as ‘leakage’. n`f\"Vdks.k ls og ?kjys w vk; tks ?kjsyw {ks= }kjk Consumption expenditure from domestic miHkksx ij O;; ugha dh tkrh gSA] mls fudklh ds consumer is the source of income for the :i eas tkuk tkrk gSA QeZ lnSo Jfedksa ls Lo;a ds domestic firms. /ku dh ek¡x djrh gS vU;Fkk ;g QeZ u rks ykHk vftZr dj ldxsa h rFkk u ldrh gSaA bl çdkj] bu Further, from the perspective of domestic firms, dkj.kksa ls udnh çokg eas o`f) gksxh ftlds the domestic income which is not spent on ifj.kkeLo:i /ku esa of` ) gksrh gSA consumption by the households is considered as leakages. Firms always seek to get their money 4) back from the workers otherwise these firms will neither be able to make profit nor they will meet i) ;fn ,d ?kjys w {ks= cSad cpr their breakeven point. [kkrs esa iSls dh cpr djrk gS rks ,d çdkj ls cSad ?kjys w {ks= ls _.k çkIr djrk gSA iwoZ eas cSad ds 4) Injections * i) Investments and Loans (I): If a household saves money in bank saving account then in a sense bank receives loan from the household. Earlier, *

lef\"V vFk'Z kkL= dk ifjp; 35 the business of banking was considered as easy to O;olk; dks 3&6&3 ds lanHkZ eas le>uk ljy gksrk understand in terms of 3-6-3. Where, banks pays FkkA tgk¡ cSad cpr [kkrs ij 3 çfr’kr C;kt nrs s 3 per cent interest on saving deposits with bank, gS] 6 çfr’kr C;kt ij _.k çnku djrs gSa rFkk ;g provide loan on 6 per cent interest and it hits the 3 cts rd xksYQ dkslZ dks lQy djrs gaSA bl golf course till 3 p.m. Now, the functions of le;] caSd dk dk;Z vf/kd tfVy gks x;k gS rFkk banks become more complicated and some new dqN u, foŸkh; laLFkkvksa us E;wpqvy QaM dh financial institutions started offering mutual is’kd’k vkjEHk dj nh gSA ?kjys w {ks= ckWUM E;wpqvy funds. The households are also saving money by QaM Ø; djds /ku dh cpr dj ldrs gSaA dqN purchasing bond mutual funds. There are some ckW.M E;wpqvy QaM gaS tks futh LokfEkRo okyh bond mutual funds which are issued by the daifu;ksa }kjk tkjh fd, tkrs gSa rFkk vU; ckW.M privately owned firms and other bonds are issued ljdkj }kjk tkjh fd, tkrs gaSA by government. ijia jkxr :i e]sa tc ?kjys w {ks= Lo;a dh jkf’k dks Traditionally, when households put their saved caSd [kkrs eas tek dj nrs k Fkk rks bls cpr ekuk money in saving bank account then it was tkrk FkkA tc dkbs Z ?kjys w {ks= Lo;a ds eqnzk dks considered as savings whereas when a household LVkWd E;wpqy QaM eas tek djrk gS rks bls fuos’k puts their money in stock mutual fund then it is ekuk tkrk gSA D;kfsa d blesa ckW.M QaM vFkok cpr considered as investment because it involves [kkrk dh vis{kk vf/kd tksf[ke gksrk gSA blds more risk than bond fund or saving account. vfrfjDr] ;fn ?kjsyw {ks= Lo;a dk /ku ckWUM Further, if households put their money in bond E;wpqvy QaM esa yxkrs gSa] rks ;g QeZ vFkok mutual fund it stops the flow of money to firm or ljdkj ds fy, /ku ds çokg dks jksd nrs s gaSA government even though economists consider it gkyk¡fd vFkZ’kkL=h bls fuos’k le>rs gaSA tc ,d as investment. When a firm takes money from the QeZ cSad ls m/kkj yrs k gS] rks ;g jkf’k _.k ds :i bank, this money is known as loan. eas tkuk tkrk gSA fon’s kh n’s kksa ds cSad rFkk fofHkUu foŸkh; laLFkku nlw js n’s k dh ljdkj dks _.k nrs s The Banks and various financial institutions of gaS] bl çdkj ;g fLFkfr çoklh {ks= ls ljdkjh {ks= foreign countries grant loan to the government of eas /ku ds çHkko dks bafxr djrh gSA other country, hence this situation indicate the flow of money from the Overseas Sector to the ii) ctV ds çeq[k Hkkxksa esa ls ,d Government Sector. Hkkx ns’k ds j{kk {ks= ij O;; fd;k tkrk gSA ljdkj j{kk {ks= dks 'kkfey djus ds fy, j{kk ii) Government Spending (G): One of the major oLrqvksa dk Ø;] fuekZ.k esa fuos’k rFkk lSfudksa dks portions of budget covers the expenditure on osru nsus ds fy, /ku dk mi;ksx djrh gSA defence sector of a country. Government use blfy,] QeZa rFkk ?kjsyw {ks= nksuksa dks ljdkj ls money to cover the expenditure of defence sector jkf’k çkIr gksrk gSA ijUrq ;g ik¡p {ks=h; ekWMy like purchases of defence goods, invests in esa n’kkZ;k ugha x;k gS tks bldh detksjh cu construction and pay salary to soldiers. tkrk gSA j{kk O;; ds vfrfjDr] ljdkj vU; xfrfof/k;ksa esa Hkh /ku O;; djrh gS] ftlesa vU; Hence, firms and households both receive money Jfedksa dks etnwjh nsuk] vuqla/kku lM+dksa dk from the government but this is not shown in the fuekZ.k Hkou rFkk iqy dk fuekZ.k 'kkfey gSA five sector model which becomes its weaknesses. vuqla/kku xfrfof/k;ksa esa ljdkj }kjk fd;k O;; Other than defence expenditure, government also cgqr egŸoiw.kZ gS D;ksafd blls ykHk çkIr gksrk spend money in activities like – paying wages to gS] ijUrq vFkZ'kkfL=;ksa rFkk ys[kkdkj dh n`f\"V ls other workers, research, construction of roads, ;g egŸoiw.kZ ugha gSA building and bridges, etc. The expenditure of government in research activity is very crucial as ;fn ,d f’k{kd fdlh Nk= dks it delivers benefits but from the perspective of i<k+ rk gS rks Nk= fuf’pr :i ls Kku çkIr djrk economists and accounts it is not very much gS] ijUrq bldk ;g vFkZ ugha gSa] fd f’k{kd ml important. Kku dks [kks nrs k gS ;k fdlh inkFkZ ¼oLrq½ ls fufeZr oLrq dks ,d O;fDr dks fn;k tkrk gS bl For example, if a teacher teaches a student fLFkfr eas ftl O;fDr us inkFkZ fn;k gSA og then student definitely gains knowledge but it vf/kdkj [kks nsrk gSA bl çdkj] vuqla/kku Áfr)anh does not mean teacher loses that knowledge. If lEifÙk;ksa dh rjg ugha gS vU; fojks/kh ifjlaifŸk;ksa something made up of matter (goods) is given ds leku egŸoiw.kZ gAS vuqla/kku eas fuos’k ek= to a person one who gave matter (goods) has lkekftd dY;k.k ds fy, dk;Z djus okys laxBuksa lost the possession of it. ds fy, mfpr gSA Hence, research is not like other rival assets * but it is as important as other assets. The investment in research is only justified for organisations working for social welfare. *

36 lef\"V vFkZ'kkL= Hence, economists suggest the firms to take blfy,] vFkZ’kkfL=;ksa us QeZ dks vuqla/kku dk;Z dk copyright or patent of research work. But under lokfZ /kdkj isVsaV çkIr djus dk l>q ko nsrs gSa] ijUrq free market, if a firm charges for the research eqDr cktkj ds vUrxZr] ;fn vU; QeZ }kjk fd, x, work done by other firm then it violates the vulq a/kku dk;Z ds fy, ,d QeZ 'kYq d ysrk gS rks ;g free market. eDq r cktkj dk mYya/ku gSA O;f\"V vFkZ’kkL= ds vUrxZr ,d iw.kZ çfrLi/kkZ cktkj esa oLrq dh dher Under microeconomics, in a perfect competition rFkk mRiknu dh lhekar ykxr nksuksa cjkcj nksuksa market, both the price of goods and marginal cost cjkcj gksuh pkfg,] ijUrq ;g fu;e okLofodrk esa of production must be equal but this rule does not ykxw ugha gksrs gAS D;ksfa d lhekar ykxr dks Álkfjr apply practically as transmitting marginal cost is djuk yxHkx 'kwU; ds leku gksrk gSA blfy, ljdkj approximately equal to zero. Hence, government lk/kkj.k turk dh ig¡qp ds fy, vuqla/kku MsVk çnku plays a very crucial role by providing the djds cgqr egÙoiw.kZ Hkwfedk fuHkkrh gAS research data to the reach of general public. iii) ;fn fons’kh {ks= vFkok QeZ vkarfjd daifu;ksa iii) Export (X): If the foreign households or firms ls oLr,q ¡ Ø; djrh gS rks bl fcØh ls mRiUu jktLo purchases goods from the domestic firms and the dks batsD’ku ds :i esa tkuk tkrk gAS revenue generated by this sale is considered as injection. 1.3.7. 1.3.7. Significance of Circular Flow of Lkef\"V vkfFkZd xfrfof/k ds pØh; çokg ds fufgrkFkZ Macro-Economic Activity fuEufyf[kr gSa& 1) &pØh; çokg ds ekWMy dh The implications of circular flow of macro-economic exercise are being explained below: lgk;rk ls vFkZO;oLFkk ds fofHkUu {ks=ksa ds e/; 1) Knowledge of Interdependence: The mutual ikjLifjd fuHkZjrk dks le>k tk ldrk gSA dependence between different sectors of the ,d O;fDr ;g le> ldrk gS fd fuekZrk economy can be understood with the help of the ?kjys w laLFkku ij fdl çdkj fuHkZj djrk gSa rFkk ;g models of circular flow. For example, one can ?kjys w laLFkku mRikndksa ij fdl çdkj fuHkZj djrs gSaA understand how producers depend on the domestic establishments and how these domestic 2) &çokg ekWMy vFkZO;oLFkk establishments depend upon the producers. eas batsD’ku rFkk ÁHkko ¼yhdst½ dh ç.kkyh dh igpku djus eas lgk;rk djrs gSaA ;g batsD’ku Áokg ds lEcU/k 2) Identification of Infusions and Effusions: The eas fdruk egŸoiw.kZ gSaA ,d O;fDr }kjk mfpr çdkj ls circular flow models help to identify the system of le>k tk ldrk gSA vFkkZr~ fuos’k rFkk fu;kZr injections and leakages in the economy. These ¼batsD’ku½ cpr rFkk vk;kr ¼yhdst½ ls lEcfU/kr gaSA injections are how much important with respect to leakages is very well understood by an individual, i.e. 3) pØh; çokg dk ;g ekWMy Investment and exports (injections) relating to savings jk\"Vªh; vk; dk vuqeku yxkus eas lgk;rk djrs gSaA and imports (leakages). &jk\"Vhª ; vk;r n’s k ds ?kjys w çfr\"Bkuksa ds fy, mRikndksa ls çkIr dkjd ¼fdjk;k + ykHk + 3) National Income Estimation: These models of etnwjh C;kt½ vk; dk dqy ;ksx gSA bls mRikndksa ls circular flow help to estimate the national income. vFkZO;oLFkk ds vU; {ks=ksa eas tkus okyh oLrqvksa rFkk For example, national income is the aggregate of lsokvksa ds cktkj eYw ; vFkok mRikndksa }kjk mRikfnr factor incomes (rent + profit + wages + interests) oLrqvksa ,oa lsokvksa ij fd, x, O;; ds dqy ;ksx ds flowing from producers to the domestic :i eas ifjHkkf\"kr fd;k tk ldrk gAS establishments of the country. It may be defined as the market value of the goods and services flowing 4) jk\"Vªh; vk; ds y[s kkadu eas from producers to other sectors of the economy or the pØh; çokg dk egŸo bldh ifj.kke eas fufgr gSA total sum of expenditure incurred on goods and çokg dh ek=k jk\"Vªh; vk; dh ek=k fu/kkfZ jr djrh gSA services being produced by the producers. vf/kd ek=k gksus ls jk\"Vªh; vk; vf/kd gksrh gSA ;k blds foijhr gksrk gSA 4) National Income Accounting: The significance of circular flow in the accounting of national income lies 5) pØh; çokg in its magnitude. The magnitude of the flow determines ekWMy fofHkUu lef\"V pj vFkkZr~ jk\"Vªh; vk; dk the volume of national income. More the magnitude miHkksx] cpr rFkk fuos’k vkfn ds ckjs eas lwpuk çnku more is the national income and vice- versa. djrk gSA blds vuqlkj] ,d O;fDr vFkZO;oLFkk dh vkfFkZd xfrfof/k ds Lrj rFkk lajpuk ds lEcU/k esa 5) Level and Structure of Economic Activity: Circular fu\"d\"kZ fudky ldrk gSA flow model provides the information regarding various macro variables, namely national income * consumption, savings, investment etc. Accordingly, one can conclude with respect to the level and structure of the economic activity of the economy. *

lef\"V vFkZ'kkL= dk ifjp; 37 6) Fiscal and Monetary Policies: The importance of 6) jkTkdks\"kh; rFkk ekSfnzd fiscal and monetary policies is featured by circular uhfr;kas ds egŸo dks vk; rFkk O;; ds pØh; çokg esa flow of income and expenditure. This importance is fpf=r fd;k tkrk gSA ;g egŸo ml le; çdV gksrk gS revealed when savings exceed investments or vice- tc cpr fuos’k ls vf/kd vFkok blds foijhr gksrh gAS versa. This implies that the disequilibrium between bldk vFkZ gS fd cpr rFkk fuos’k ds e/; dh vlekurk savings and investments is established by the credit _.k rFkk ekfS nzd uhfr;ksa }kjk LFkkfir dh tkrh gAS bl and monetary policies. Thus, when the amount of Ádkj] tc cpr rFkk dj dh jkf’k fuos’k rFkk ljdkjh savings and taxes is more than the investments and O;; ls vf/kd gksrh gS] rks bl çdkj dh jktdks\"kh; government spending, such fiscal procedures like çfØ;k,¡ tSls dj ,oa O;; esa dVkrS h dks leku :i ls reduction in taxes and spending are being adopted Lohdkj fd;k tk jgk gSA bl çdkj vk; rFkk O;; dk similarly. Thus the circular flow of income and pØh; çokg vlekurk dh leL;k dks gy djus rFkk expenditure facilitates in resolving the problem of laryq u dh cgkyh dh lfq o/kk çnku djrk gSA disequilibrium and restoration of equilibrium. 1.4. ANALYSIS AND MEASUREMENT 1.4. OF ECONOMIC ACTIVITY vkfFkZd fØ;kvksa ds fo’ys\"k.k vkSj ekiu ds fy, ;g fu/kkZfjr djuk vko’;d gS fd vFkZO;oLFkk esa o`f) gks jgh The analysis and measurement of economic activities is gS ;k ugha vkSj ;fn o`f) gks jgh gS rks fdl nj ijA needed to determine that whether the economy is growing vkfFkZd fodkl ij O;kikj ?kkVs dk ÁHkko] vFkZO;oLFkk esa or not and if growing then at what rate, impact of trade oLrqvksa vkSj lsokvksa ds O;; djus dh ÁÑfr ij ÁHkko deficit on economic growth, impact on the pattern of iM+rk gSA spending goods and services in the economy. 1) uhfr;ksa ds fuekZ.k ds fy, mÙkjnk;h O;fDr;ksa dks mudh The measurement of national economic activity is vktrd dh lQyrk vkSj Hkkoh vkfFkZd uhfr;ksa dh important to satisfy following three key motives: vko’;drk dh tk¡p ds fy, vkfFkZd fØ;k ds Lrj dks 1) The persons who are responsible to make the ekiuk pkfg,A ;g vc rd uhfr ds ifj.kkeksa dk eYw ;kadu djus ds fy, fd;k tkrk gS vkSj ;fn ekudksa policies need to measure the level of economic ds vuqlkj dqN ÁkIr djuk 'ks\"k jg tkrk gS rks uhfrxr activity so as to check their success till date and the varj ds Lo#i dk irk yxk;k tk ldrk gSA need for future economic policies. This is done to evaluate the outcomes of the policy till date and if 2) O;kolkf;d fØ;kvksa esa lfEefyr O;fDr;ksa dks something remains to be achieved as per the mRiknu dh tkus okyh oLrqvksa dh ek=k dh ;kstuk standards then finding the nature of policy gap cukus] j[kj[kko dh tkus okyh oLrq&lwph vkSj remaining. foKkiu djus ds fy, vFkZO;oLFkk ds fodkl dk Kku gksuk pkfg,A ?kjsyw O;kikj esa lfEefyr QeksZa dks 2) The persons involved in business activity need to vFkZO;oLFkk esa vftZr ykHk dh jkf’k tkuus dh know the growth of the economy to plan the vko’;drk gS rkfd mRiknu esa fuos’k dh tkus okyh quantity of goods to be produced, inventory to be vk; dh jkf’k dk fu/kkZj.k fd;k tk ldsA maintained, and advertising to be done. The firms involved in domestic trade need to know the 3) vFkZO;oLFkk esa ÁR;sd O;fDr vFkZO;oLFkk dh vkfFkZd amount of profit that can be earned in the economy lao`f) ds lEcU/k eas fpafrr gksrk gSA mu lHkh dks ;g in order to determine the amount of income to be tkuus dh vko’;drk gS fd vkfFkZd fodkl ds lEcU/k invested in the production. eas os fdl LFkku ij fLFkfr gSaA 3) Every person in the economy is concerned about fdlh ns’k ;k {ks= eas lexz vkfFkZd fØ;k dk vkdyu the well-being of the economy. They all need to jk\"Vªh; vk; ds fu/kkZj.k ds fofHkUu ekiuksa }kjk fd;k know at what place they are standing in respect of tkrk gSA bu ekiuksa eas ldy ?kjsyw mRikn ¼th-Mh-ih-½] economic growth. ldy jk\"Vªh; mRikn ¼th-,-ih-½] 'kq) jk\"Vªh; vk; ¼,u- ,u-vkbZ-½ vkSj lek;ksftr jk\"Vªh; vk; lfEefyr gks The estimation of total economic activity in a country ldrh gSA lek;ksftr jk\"Vªh; vk;] ftls ?kVd ykxr or region is done by various measures of determining ij 'kq) jk\"Vªh; vk; ds :i eas Hkh tkuk tkrk gS] dh the national income. These measures may include Gross x.kuk 'kq) jk\"Vªh; vk; }kjk lalk/kuksa eas ÁkÑfrd VwV Domestic Product (GDP), Gross National vkSj QwV ds fy, lek;ksftr djds dh tkrh gSA Product (GNP), Net National Income (NNI), and Adjusted National Income. * Adjusted National Income, also known as NNI at factor cost, is calculated by adjusting the NNI for natural wear and tear in the resources. *

38 lef\"V vFkZ'kkL= These are generally used for measuring the quantity of bldk mi;ksx lkekU;r% vFkOZ ;oLFkk dh oLrqvksa ,oa goods and services of an economy and the production lsokvksa dh ek=k vkSj fofHkUu vU; {ks=ksa ds mRiknu dks of various other sectors. The measurement of the ekius ds fy, fd;k tkrk gSA vkfFkZd fØ;kvksa dk ekiu economic activity is done on the basis of geographical HkkSxksfyd {ks= ;k ukxfjdrk ds vk/kkj ij fd;k tkrk gS area or citizenship and is known as national income of vkSj bls ml n’s k dh jk\"Vhª ; vk; ds uke ls tkuk that country. tkrk gSA jk\"Vªh; vk; dk fu/kkZj.k djrs le; dqN oLrqvksa vkSj lsokvksa dh fxurh ij Áfrca/k gksrk gSA At the time of determining the NI there are restrictions on the counting of some of the goods and services. For dqN ekiuksa ds lEcU/k esa dsoy iSls example, in case of some measures only the goods ds fy, vknku&Ánku fd, x, oLrqvksa dh x.kuk dh exchanged for money are counted and the goods tkrh gS vkSj oLrqvksa ds fy, vknku&Ánku fd, x, exchanged for goods are totally ignored, in some oLrqvksa dh iw.kZr% vuns[kh dh tkrh gS] dqN ekiuksa esa measures the goods exchanged for goods are counted by oLrqvksa ds fy, vknku&Ánku fd, x, oLrqvksa dh assigning the value in terms of money. x.kuk /ku ds ekeys esa ewY; fufnZ\"V djds dh tkrh gAS The practice involve in the determination of the income bl i)fr eas n’s k ds fy, ldy ?kjys w mRikn] ldy and production for the country as a whole like gross domestic product (GDP), gross national income (GNI), net jk\"Vªh; vk;] 'kq) jk\"Vªh; mRikn rFkk Á;ksT; O;fDrxr national product (NNP), and disposable personal income is known as National Income Accounting. vk; dks ds :i esa Hkh tkuk The measurement and analysis of economic activities tkrk gSA cannot be done in the absence of data related to quantity of total production, employment in the country and inflation vkfFkZd xfrfof/k;ksa dk ekiu vkSj fo’ys\"k.k ns’k esa rate. For the purpose of encouraging the growth and dqy mRiknu] jkstxkj rFkk eqnzkLQhfr dh nj ls maintaining the stability the formulation of a better lEcfU/kr vk¡dM+ksa ds vHkko esa ugha fd;k tk ldrkA monetary and fiscal policy plays a very important role. fodkl dks c<+kok nsus vkSj fLFkjrk cuk, j[kus ds The policy will be good if it is reliable and based on the fy, csgrj ekSfnzd vkSj jktdks\"kh; uhfr rS;kj djuk relevant and recent data. vR;aUr egÙoiw.kZ Hkwfedk fuHkkrk gSA ;fn ;g fo’oluh; vkSj Áklafxd rFkk orZeku vk¡dM+ksa ij The new methods of measuring the economic activities are vk/kkfjr gS rks uhfr vPNh gksxhA being introduced to get the correct results because the methods adopted earlier for the determination of national lgh ifj.kke ÁkIr djus ds fy, vkfFkZd fØ;kvksa dks income were having some problems in measuring. The ekius ds u, rjhdksa dh ÁkjEHk dh tk jgh gS D;kfsa d two American economists; James Tobin, who won the jk\"Vªh; vk; ds fu/kkZj.k ds fy, igys viuk, x, rjhdksa Nobel Prize in 1981, and William Nordhaus have made dks ekius eas dqN leL;k FkhA nks vesfjdh vFk’Z kkL=h] an significant contribution in this field. They have tried to 1981 esa ukscsy iqjLdkj fotsrk tsEl VkWfcu rFkk fofy;e explain it in the most elaborate way. They developed a uksMZgkl us bl {ks= esa egÙowi.kZ ;ksxnku fn;k gAS mUgksua s measure through which the economic „goods‟ as well as bls lcls foLr`r rjhds ls le>kus dh dksf’k’k dh gAS „bads‟ generated during a specific period to analyse the mUgkusa s vFkOZ ;oLFkk ds csgrj gksus dk fo’ys\"k.k djus ds well-being of the economy. The measuring tool fy, ,d fo’ks\"k vof/k ds nkSjku vkfFkdZ ^vPNkb*Z rFkk developed by these two economists was called as a ^cjq kbZ* dk vkadyu fd;kA bu nksuksa vFkZ’kkfL=;ksa }kjk Measure of Economic Welfare. This tool only measures fodflr ekid&;a= dks vkfFkdZ dY;k.k dk ,d ekiu the consumption of goods and services that provide utility dgk tkrk FkkA ;g lk/ku dsoy ,slh oLrqvksa ,oa lsokvksa to households and gives very little importance to the total ds miHkksx dks ekirk gS tks ?kjksa dh mi;ksfxrk Ánku production. It gives value to the activities like leisure that djrh gS vkSj dqy mRiknu dks cgqr de egÙo nsrh gAS are non-marketed and the „disutilities‟ like pollution and ;g vodk’k tlS h fØ;kvksa dks egÙo nsrk gS tks congestion are subtracted. xjS &cktkj ls lEcfU/kr gSa vkSj Ánw\"k.k ,oa HkhM+ tSlh mi;ksfxrk,¡ ?kVk nh tkrh gaSA Following are ways by which the traditional GNP data was modified to MEW: 1) Án\"w k.k] teko] 'kksj vkSj dwM+s tSlh dqN vkfFkZd 1) GNP is reduced by the estimated cost of certain cqjkbZ;ksa dh vuqekfur ykxr ls ldy jk\"Vhª ; mRikn de gks tkrk gAS economic bads like pollution, congestion, noise, and litter. 2) ldy jk\"Vªh; mRikn ls fofHkUu viotZu fd, x, gSaA blesa iqfyl laj{k.k] jk\"Vªh; lqj{kk tSlh 2) Various exclusions are made from the GNP. This may vko’;drkvksa dk O;; Hkh lfEefyr gks ldrk gSA include expenditures on necessities like police protection, national defence. 3) ?kjys w mRiknd fØ;k,¡] vodk’k vkSj xSj&foi.ku oLrq,¡ ldy jk\"Vªh; mRikn dk ,d Hkkx curs gSaA 3) The household productive activities, leisure and other non-marketed goods form a part of GNP. * *

lef\"V vFk'Z kkL= dk ifjp; 39 1.5. NATIONAL INCOME 1.5. ACCOUNTING 1.5.1. 1.5.1. Meaning and Definition of National Income Accounting lef\"V vFkZ’kkL=] vFkZ’kkL= dh ,d 'kk[kk gS] tks lexz :i ls vFkZO;oLFkk Á.kkyh ls lEcfU/kr gksrh gS] tgk¡ leqPp; dks Macro-economics is the branch of an economics which deals with the economy system as a whole where ds :i eas tkus okyh O;ofLFkr aggregates are measured through a systematic method fof/k ds ek/;e ls ekik tkrk gSA bls jk\"Vªh; vk; y[s kkadu known as national income accounting. ds :i eas tkuk tkrk gSA National income accounting is a process of preparing and jk\"Vªh; vk; y[s kkadu og ÁfØ;k gS ftleas y[s kkadu ekudksa presenting the national income accounts on the basis of the dh nksgjh Áo`f\"V Á.kkyh ds eyw fl)kar ds vk/kkj ij jk\"Vªh; fundamental principle of double entry system of vk; [kkrksa dh rS;kjh ,oa ÁLrqfrdj.k gAS ;g lexz jkstxkj] accounting standards. It is an essential structure to jk\"Vªh; vk;] jk\"Vªh; mRiknu] dqy fuos’k] dqy miHkksx] dqy measures the macro aggregates like total employment, cpr] dqy vkiwfrZ] dqy ek¡x] lkekU; eYw ; Lrj] osru Lrj national income, national output, total investment, total vkSj ykxr lajpuk tSls lef\"V ;ksx dks ekius ds fy, ,d consumption, total savings, aggregate supply, aggregate vfuok;Z lajpuk gSA demand, general price level, wage level and cost structure. Þjk\"Vªh; vk; y[s kkadu] lexz According to D.C. Colander, “National income accounting vFkZO;oLFkk esa vkfFkZd fØ;k dks ekius ds fy, fu;eksa ,oa is a set of rules and definitions for measuring economic ifjHkk\"kkvksa dk ,d lewg gAS ß jk\"Vªh; vk; dks ekius ds }kjk] activity in the aggregate economy.” By measuring the ;g vFkZO;oLFkk Á.kkyh ds Án’kZu dk la{ksi eas o.kZu dj national income, it can briefly describe the performance of ldrk gAS vkfFkdZ fØ;kdykiksa dk ekiu ,sls ekinMa ksa ds :i an economy system. It can be taken as parameters against eas fd;k tk ldrk gSA which the economic activities are measured. jk\"Vªh; vk; y[s kkadu dk eq[; mn~n’s ; ljdkjh uhfr;ksa ,oa The prime objective of national income accounting is to dk;ZØeksa ds lt`u ds fy, uhao Ánku djuk gS tks yksxksa ds provide the foundation for creating the government policies i;kIZ r dY;k.k dks c<k+ us eas lgk;rk djrs gSaA lef\"V and programmes that assist in maximising the substantial vFkZ’kkL= dh :ij[s kk tSlk fd igys crk;k x;k gS vk; vkSj welfare of the people. Framework of a macro-economics is mRiknu ds pØh; Áokg ls vklkuh ls le>k tkrk gSA mu simply understood from the circular flow of income and pØh; Áokg ekWMy jk\"Vªh; vk; y[s kkadu dh O;k[;k djus output as explained earlier. Those circular flow models ds fy, vk/kkj Ánku djrs gSaA provide base to explain the national income accounting. 1.5.2. 1.5.2. National Income Accounting Identity jk\"Vªh; vk; y[s kkadu dh igpku jk\"Vªh; vk; ¼y½ vkSj lexz ek¡x ;k O;; ¼AD½ ds e/; ds lEcU/k }kjk O;Dr dh tkrh An identity of national income accounting is expressed gSA dqy O;; eas O;fDrxr miHkksx O;;] ¼C½] futh fuos’k through the correlation between the national income (Y) and ¼I½] ljdkjh O;; ¼G½ rFkk 'k)q fu;kZr ¼X½] vFkkZr fu;kZr ls aggregate demand or expenditure (AD). The aggregate vk;kr dk varj ¼M½ lfEefyr gSA chtxf.krh; :i ls] expenditure is comprised of personal consumption jk\"Vªh; vk; vkSj O;; ds lg lEcU?k dk Áfrfuf/kRo djus expenditure (C), private investment (I), government spending okyh vfHkO;fDr fuEu gksxh& (G) and net exports i.e. the difference of imports (M) from exports (X). Algebraically, the expression to represent the y = C + I + G +X –M correlation of national income and expenditure would be: jk\"Vªh; vk; y[s kkadu dh igpku eyw O;olk; y[s kkadu fl)kar ds leku gS] vFkkZr~] Y=C+I+G+X–M A LE The identity of national income accounting is very much similar to the basic business accounting principle i.e., okLro :i e]sa ;g igpku lexz O;; n`f\"Vdks.k ds ek/;e ls ldy ?kjsyw mRiknu dks ifjHkkf\"kr djus esa lgk;rk djrh gAS Assets (A) = Liabilities (L) + Equity (E) 1.5.3. In actual fact, this identity helps in defining the gross domestic jk\"Vªh; vk; y[s kkadu ds nks ewyHkwr dk;Z fuEukuqlkj gaS& product through the aggregate expenditure approach. 1) ;g mu vkfFkZd fØ;kvksa dk ekU;rk nsrk gS tks ,d 1.5.3. Functions of National Income jk\"Vª ds fy, miyfC/k ekuh tkrh gS] tSls& ldy Accounting ?kjsyw mRikn esa o`f)] vFkZO;oLFkk dh fodkl nj vkfnA There are two basic functions of national income accounting which are as follows: * 1) It recognises those economic activities that are considered achievement for a nation like increase in GDP, growth rate of an economy etc. *

40 lef\"V vFkZ'kkL= 2) It offers purpose to analyse and re-evaluate the 2) ;g yksxksa ds i;kZIr dY;k.k ds fy, ljdkj }kjk policies and programmes established by the LFkkfir uhfr;ksa vkSj dk;ZØeksa dk fo’ys\"k.k vkSj government for the substantial welfare of the people. iquewZY;kadu djus dk mn~ns’; Ánku djrk gSA 3) The information received from the national income 3) jk\"Vªh; vk; ys[kkadu ls ÁkIr lwpuk fdlh jk\"Vª dh accounting is useful to study, evaluate and vkfFkZd fØ;kvksa ds v/;;u] ewy;kadu vkSj vkdyu understand the economic activities of a nation. esa mi;ksxh gksrh gSA vr% lef\"V vFkZ’kkL= dk Therefore, the study of macro-economics is v/;;u jk\"Vªh; vk; ys[kkadu ds v/;;u ls ÁkjEHk commencing from the study of national income gksrk gSA accounting. 1.5.4. 1.5.4. Main Uses of National Income Accounting jk\"Vªh; vk; y[s kkadu ds fofHkUu mi;ksx bl Ádkj gSa& 1) ,slh vFkZO;oLFkk dh lQyrk vkSj vlQyrk dks The different uses of national income accounting are as follows: jk\"Vªh; vk; ys[kkadu ds ek/;e ls igpkuk tkrk gS 1) The success and the failure of an economy are tks jk\"Vªh; vk; ys[kkadu ds ek/;e ls Ánf’kZr gksrh gSA recognised through the functioning of an economy which is in turn displayed through the national 2) fdlh vFkZO;oLFkk eas la’kks/ku dk fu/kkZj.k djuk mi;ksxh income accounting. gksrk gSA foxr n’kdkas ds nkSjku 2) It is useful to determine the modifications takes place in an economy. For example, in India during the Ñf\"k {ks= us jk\"Vªh; ldy mRikn esa Áeq[k ;ksxnku previous decades, the agriculture sector made major contribution toward the national GDP but it had been fd;k] ijUrq vkS|ksfxd vkSj lsok {ks= eas fujarj lq/kkj ds reduce due to continuous improvement in industrial and service sector. dkj.k bls de fd;k x;k FkkA 3) It is useful to reveal the distribution of national income 3) jk\"Vªh; vk; dk mRiknu ds fofHkUu dkjdksa ds e/; amongst the different factors of production. forj.k dks ÁdV djuk mi;ksxh gSA egÙoiw.kZ :i ls Significantly, it is useful for trade unions which involves ;g O;kikj la?kksa ds fy, mi;ksxh gS ftuesa etnwjksa dks in sound evaluation of remuneration made to the labours. fn, x, ikfjJfed dk mi;qDr ewY;kadu lfEefyr gSA 4) It is a useful tool to assess the different nations on the 4) jk\"Vªh; vk; vkSj Áfr O;fDr vk; ds vk/kkj ij basis of national income and per-capita income. As fofHkUu ns’kksa dk vkadyu djuk ,d mi;ksxh lk/ku such assessment is useful to making modification in gSA bl Ádkj ds vkadyu ls mu ;kstukvksa vkSj plans and methods that are significant for the fof/k;ksa esa lq/kkj gks ldrk gS tks jk\"Vª ds fodkl ds development of a nation. fy, egÙoiw.kZ gSaA 5) The statistical information provided through the 5) jk\"Vªh; vk; y[s kkadu ds ek/;e ls miyC/k lkaf[;dh; national income accounting is useful to ascertain the lwpuk fofHkUu {ks=ksa ds vkuiq kfrd ;ksxnku dk irk proportionate contribution made by the different yxkus ds fy, mi;ksxh gSA ,d fo’ks\"k vof/k eas fofHkUu sectors. The significant development in different {ks=ksa eas egÙoiw.kZ fodkl dk Hkh fu/kkZj.k fd;k tk sectors over a particular time period can also be ldrk gSA determined. 6) la;qDr jk\"Vª la?k eas Hkh bldk mi;ksx fo’o ds fofHkUu 6) United National Organisation (UNO), also utilise it n’s kksa ds fy, dY;k.kdkjh ;kstuk,¡ rS;kj djus eas fd;k to prepare the welfare plans for various countries of tkrk gSA lcls Åij fodkl’khy n’s k la;qDr jk\"Vª la?k the world. In above the all, the underdeveloped and dh Áeq[k laLFkk gSA developing countries are the prime concern of UNO. 7) vFkZ’kkL=h ds fy, muds jk\"Vª dh uhfr;k¡ LFkkfir djuk vkSj lef\"V vFkZ’kkL= ds fofHkUu igyqvksa ij vuqla/kku 7) It is a useful tool for economist to establish the djuk ,d mi;ksxh lk/ku gSA policies for their nation and to conduct research on the different aspects of macro-economics. eyw r% jk\"Vªh; vk; y[s kkadu ls ÁkIr vk¡dM+s yksxksa }kjk dh xbZ vkfFkdZ fØ;kvksa ds mRiknd ifj.kkeksa dks Ánf’kZr djus Basically, the data gained from the national income ds fy, mi;ksxh gksrs gSaA ;g lef\"V vFkZ’kkL= ds lajpuk ij accounting is useful to demonstrate the productive cy nrs k gS tks vk; vkSj mRikn ds o`Ùkkdj Áokg ds ek/;e outcomes of the economic activities rendered by the ls Ánf’kZr gksrk gAS people. It stress on framework of macroeconomics which is displayed through a circular flow of income and product. **

lef\"V vFk'Z kkL= dk ifjp; 41 1.6. NATIONAL INCOME 1.6. 1.6.1. Concept and Definition of 1.6.1. National Income ,d o\"kZ dh vof/k ds nkSjku fdlh n’s k }kjk mRikfnr lHkh The assessment of money value of all goods and services produced by a country during a period of one year is the oLrqvksa vkSj lsokvksa ds jkf’k dk vkadyu ml n’s k dh jk\"Vªh; national income of that country. National income is the cumulative collection of various goods and services as vk; gSA jk\"Vªh; vk; fofHkUu oLrqvksa ,oa lsokvksa dk leqPp; these goods are measured in different physical units, so it is impossible to add them together. Hence, the common laxzg gS] D;kfsa d bu oLrqvksa dks fofHkUu HkkSfrd bdkb;ksa esa measure to evaluate them is the unit of money. For example, national income cannot be measured by standard ekik tkrk gS] blfy, bu oLrqvksa dks ,d lkFk tksM+uk unit of measurement like million litres of milk or million metres of cloth. vlaHko gSA blfy,] mudk ewY;kadu djus ds fy, lkekU; National Income is the total net value of all goods and ekiu eqnzk dh bdkbZ gSA jk\"Vªh; vk; services produced within a nation over a specified period of time, representing the sum of wages, profits, rents, dks ekud bdkbZ esa eki dh tk ldrh gS] tSls fd ,d interest, and pension payments to residents of the nation. ehfy;u yhVj n/w k ;k ,d ehfy;u ehVj diM+kA According to Professor Fisher, “The national dividend or income consists solely of services as received by ultimate jk\"Vªh; vk; ,d fufn\"Z V vof/k ds nkSjku ,d jk\"Vª ds e/; consumers, whether from their material or from their mRikfnr lHkh oLrqvksa vkSj lsokvksa dk dqy 'kq) ewY; gS] tks human environment”. jk\"Vª ds fuokfl;ksa dks ikfjJfed] ykHk] fdjk;k] C;kt vkSj is’a ku Hkqxrku dk Áfrfuf/kRo djrh gSA According to Pigou, “National income is that part of the objective income, of the community, including of Þjk\"Vªh; ykHkka’k ;k vk; eas course, income derived from abroad, which can be dsoy mUgha lsokvksa dks lfEefyr fd;k tkrk gS tks vafre measured in money”. miHkksDrk vius HkkfS rd vFkok vius ekuoh; ifjos’k ls ÁkIr djrs gSaAß According to Marshall, “The labour and capital of country acting on its natural resources produce annually a certain net Þjk\"Vªh; vk; ml leqnk; ds oLrqfu\"B aggregate of commodities, material and immaterial including vk; dk og Hkkx gS] ftlesa fuf’pr :i ls] fons’k ls ÁkIr services of all kind. This is the true net national income or vk; lfEefyr gS] ftls eqnzk esa ekik tk ldrk gSAß revenue of the country or national dividend”. Þns’k dk Je vkSj iw¡th vius 1.6.2. Features of National Income ÁkÑfrd lalk/kuksa ij dk;Z djrh gS] okf\"kZd :i ls oLrqvksa dk ,d fuf’pr 'kq) leqPp;] lkexzh dk mRiknu The various features of national income are as follows: djrh gSA ;g ns’k dh okLrfod 'kq) jk\"Vªh; vk; ;k 1) Excessive Dependence on Agriculture: Agriculture jktLo ;k jk\"Vªh; ykHkka’k gSAß sector contributes 27.8% of the national income 1.6.2. which is one of the most significant features of jk\"Vªh; vk; dh fofHkUu fo’ks\"krk,¡ bl Ádkj gaS& national income. Hence the development of this sector 1) Ñf\"k {ks= jk\"Vªh; vk; dk is very important as it has a large employment potential, marketable surplus and required support to 27.8% ;ksxnku nrs k gS tks jk\"Vªh; vk; dh lcls the industrial sector. egÙoiw.kZ fo’ks\"krkvksa eas ls ,d gSA blfy, bl {ks= dk fodkl vR;ar egÙoiw.kZ gS D;ksfa d blesa jkstxkj dh 2) Poor Growth Rate of GDP and Per Capita vf/kd laHkkouk] foØ; ;ksX; vf/k’ks\"k vkSj vkS|ksfxd {ks= Income: Another relevant feature of national income dks vifs {kr lg;ksx miyC/k gAS of the country is the poor growth rate of GDP and per capita income. 2) 3) Unequal Distribution and Poor Standard of n’s k dh jk\"Vªh; vk; dk ,d vU; Living: In India, the distribution of national income is lEcfU/kr igyw ;k fo’ks\"krk ldy ?kjys w mRikn dh fuEu completely unequal as the distribution pattern is o`f) nj vkSj Áfr O;fDr vk; gSA highly skewed, as a result large numbers of people are poor and even below the poverty line. 3) Hkkjr eas] jk\"Vªh; vk; dk forj.k iw.kZr;k vleku gS] D;kfsa d 4) Growing Contribution of Tertiary Sector: The forj.k dk Lo:i csgn vleku gS] ftlds dkj.k cM+h most notable feature of national income is the la[;k eas yksx xjhc gSa vkSj xjhch js[kk ls uhps Hkh gSaA contribution of the tertiary sector is continuously increasing year after year. 4) jk\"Vªh; vk; dh lcls mYy[s kuh; fo’ks\"krk gS fd r`rh;d {ks= dk * ;ksxnku yxkrkj o\"kZ nj o\"kZ c<r+ k jgrk gSA *

42 lef\"V vFkZ'kkL= 5) Unequal Growth of Different Sectors: In our 5) gekjs n’s k esa country different sector of the economy are growing vFkZO;oLFkk ds fofHkUu {ks=ksa eas vleku o`f) gks jgh gAS disproportionately. During the period 1951-97 the lu~ 1951&97 dh vof/k ds nkSjku ÁkFkfed {ks= dh growth rate of primary sector was 2.9% in contrast to fodkl nj 2.9% dh vis{kk 6.3% ,oa 7.1% FkhA the growth rate of 6.3% and 7.1% of the secondary and tertiary sectors. 6) jk\"Vªh; vk; dk ,d vkSj mYys[kuh; igyw gS Hkkjr ds fofHkUu {ks=ksa dh vlekurkA Hkkjr ds 6) Regional Disparity: Another notable feature of dsoy Ng jkT;ksa eas Áfr O;fDr vk; lcls vf/kd gSA national income is disparity in different regions of tks fd vklS r jk\"Vªh; vk; ls vf/kd gSA bu Ng jkT;ksa India. Only six states of India have recorded the highest dh ÁFke Js.kh eas iatkc tcfd fuEu Js.kh fcgkj us per capita income which exceeds the national figure. LFkku ÁkIr fd;kA Among these six states Punjab having the highest rank, whereas Bihar recorded the lowest rank. 7) gekjs n’s k dh 'kgj vkSj xzkeh.k vk; esa ,d cM+k HksnHkko gSA vf[ky Hkkjrh; 7) Urban and Rural Disparity: There is a huge xzkeh.k ?kjsyw losZ{k.k ds vk¡dM+ksa ds vuqlkj 'kgjh {ks=ksa discrimination between the urban and rural income of dk vk; Lrj xzkeh.k {ks=ksa dh vk; dh nqxquh gS] ftlls our country. According to the statistics of all India xzkeh.k vFkZO;oLFkk dk fuEu fodkl fn[kkbZ nsrk gSA rural household survey, the Income level of urban areas is double the income of rural areas showing a 8) jk\"Vªh; vk; dk vf/kdka’k poor development of the rural economy. Hkkx futh {ks= }kjk vftZr 75.8% gS vkSj 'ks\"k 24.2% jk\"Vªh; vk; dk lkoZtfud {ks= )kjk ;ksxnku fn;k 8) Public and Private Sector: Larger portion of tkrk gSA ;g Hkh Hkkjr dh jk\"Vªh; vk; dh ,d national income is generated by the private sector mYy[s kuh; vkSj foMacukiw.kZ fo’ks\"krk gSA accounted for 75.8% and the remaining 24.2% is of national income is contributed by the public sector. 1.6.3. This again is a notable and ironical feature of India‟s national income. jk\"Vªh; vk; lax.kuk eas lfEefyr ,tsafl;k¡ fuEufyf[kr gaS& 1.6.3. Agencies in National Income 1) /;ku nus s okyh ,d egÙoiw.kZ Following are the agencies involved in national income ckr ;g gS fd jk\"Vªh; vk; lfefr dh flQkfj’kksa ds computation: 1) National Sample Survey (NSS): An important point vk/kkj ij] jk\"Vªh; uewuk losZ{k.k lu~ eas LFkkfir to note is that on the basis of the recommendations of fd;k x;k FkkA jk\"Vªh; vk; vkadyu ds fy, vko’;d the National Income Committee, National Sample Survey was set-up in 1950. The NSS was entrusted vk¡dM+s ,d= djus dk dk;Z jk\"Vªh; uewuk losZ{k.k dks with the task of collecting necessary data for national income estimation. The NSS is a continuing survey in lkSaik x;k FkkA jk\"Vªh; uewuk losZ{k.k bl vFkZ eas ,d the sense that it is carried out in the form of successive “rounds”, each round usually of a year's duration lrr losZ{k.k gS fd bls Øfed ^xksykdkj* ds :i esa covering several topics of current interest. The surveys are conducted through household interviews, using a fd;k tkrk gS] ÁR;sd le; eas lekU;r% ,d o\"kZ dh random sample of households covering practically the entire geographical area of the country. vof/k eas pkyw C;kt ds fofHkUu igyvq ksa dks ÁkIr fd;k 2) Central Statistical Organisation (CSO): In 1954 the tkrk gSA ns’k ds iwjs HkkSxksfyd {ks= dks vkPNkfnr djus Government of India set-up an official agency, viz., the Central Statistical Organisation (CSO), for okys ?kjksa ds ;knf` PNd uewus dk mi;ksx djrs gq,] publishing official estimates of India‟s national income. The CSO published the first of its national losZ{k.k ?kjys w lk{kkRdkj ds ek/;e ls fd, tkrs gaSA income estimate (called the White Paper on National Income) in 1956. Since then, it has been publishing 2) lu~ esa Hkkjr ljdkj annual estimates of India‟s national income on a us Hkkjr dh jk\"Vªh; vk; ds ljdkjh vuqekuksa ds Ádk’ku regular basis under the title „National Account gsrq ,d dnsa zh; ,tsalh] vFkkZr~ dsanzh; lkaf[;dh; laxBu Statistics‟. The CSO is the only government dh LFkkiuk dhA dsna zh; lkaf[;dh; laxBu us 1956 esa institution responsible for collecting, processing, vius jk\"Vªh; vk; vuqeku dks igyh ckj Ádkf’kr disseminating and publishing data and information fd;kA rc ls ;g Hkkjr dh jk\"Vªh; vk; ds okf\"kZd statistical. It gives the official status for the statistical vuqekuksa dks ^jk\"Vªh; [kkrk lkaf[;dh;* 'kh\"kZd ls figures in the Republic. It is responsible for fu;fer vk/kkj ij Ádkf’kr djrk jgk gSA dsanzh; implementing the statistic processes and collecting data of lkaf[;dh; laxBu ,d ek= ljdkjh laLFkku gS tks various types and levels, and it implements many of vk¡dM+s vkSj lwpuk lkaf[;dh dks ,d= dju]s ÁlaLdj.k] Álkj vkSj Ádkf’kr djus ds fy, mÙkjnk;h gSA ;g * Átkra= eas lkaf[;dh; vk¡dM+ksa ds fy, vkf/kdkfjd ntkZ nrs k gSA ;g lakf[;dh; ÁfØ;kvksa dks ykxw djus vkSj fofHkUu Ádkj vkSj Lrjksa ds vk¡dM+ksa dks ,d= djus ds fy, mÙkjnk;h gS] vkSj ;g fofHkUu ¼lkekU; lax.kuk vkSj *

lef\"V vFk'Z kkL= dk ifjp; 43 (general censuses and statistical surveys). It has a several lkaf[;dh; losZ{k.k½ dks ykxw djrk gSA blesa fofHkUu publications censuses and surveys, and it publishes the Ádk’ku lax.kuk vkSj losZ{k.k gaS] vkSj okf\"kZd iqfLrdk yearbook statistical annually, and it includes the least Ádkf’kr djrk gS] rFkk blesa lcls de vk¡dM+s vkSj statistics and indicators. ladsrd lfEefyr gaSA 3) National Statistical Commission (NSC): The 3) Hkkjr ljdkj us tuojh Government of India constituted the National Statistical 2000 eas Hkkjrh; fjtoZ caSd ds iwoZ xouZj lh- jaxjktu Commission in January 2000 under the chairmanship of dh v/;{krk eas jk\"Vªh; lkaf[;dh vk;ksx dk xBu fd;k C. Rangarajan, former Governor of the Reserve Bank of x;k] rkfd Hkkjr eas jk\"Vªh; vk; ds vkadyu esa India to study the problems involved in the estimation of lfEefyr leL;kvksa dk v/;;u fd;k tk lds vkSj bls national income in India and make suitable ykxw djus ds fy, mi;qDr flQkfj’ksa dh tk ldAsa recommendations to be implemented. The NSC jk\"Vªh; lkaf[;dh; vk;ksx us 5 flrEcj 2001 dks viuh submitted its report on 5 September 2001. NSC fjikVs Z ÁLrqr dhA jk\"Vªh; lkaf[;dh vk;ksx us jk\"Vªh; discussed, at length, the reasons for revisions in the [kkrksa ds vk¡dM+ksa eas la’kks/ku ds dkj.kksa vkSj jk\"Vªh; [kkrksa national accounts statistics and made elaborate ds ladyu esa vko’;d vk¡dM+ksa dh ÁkfIr vkSj xq.koÙkk esa recommendations for improving the coverage and lq/kkj ds fy, foLr`r flQkfj’ksa dh gSaA jk\"Vªh; lkaf[;dh quality of database required in the compilation of vk;ksx dh flQkfj’kksa dks ykxw djus ij vk¡dM+ksa dh national accounts. The recommendations of the NSC, miyC/krk dh fLFkfr rFkk fofHkUu vk¡dM+ksa ds lzksrksa ls when implemented, are expected to improve the data jk\"Vªh; [kkrksa ds ladyu ds fy, orZeku eas miyC/k availability position as well the quality of the data vk¡dM+ksa dh xq.koÙkk esa lq/kkj dh mEehn dh tkrh gAS presently available for compiling the national accounts, from various data sources. 4) dsanzh; lkaf[;dh; laxBu ds vfrfjDr Hkkjrh; fjtoZ cSad n’s k dh jk\"Vªh; vk; dk 4) Reserve Bank of India (RBI): In addition to the vkdyu djus eas Hkh Hkwfedk fuHkkrk gSA dqN le; igys CSO, the Reserve Bank of India also plays a role in rd Hkkjrh; fjtoZ cSad] nksuksa gh cpr dk vkdyu djrs the estimation of national income of the country. Till jgs gaS] tks jk\"Vªh; vk; dk ,d egÙoiw.kZ ?kVd gSA some time back, both CSO and RBI have been x.kukvksa eas ÁkIr folaxfr;ksa dks lekIr djus dh n`f\"V estimating savings, an important constituent of ls mUgksua s vc mu folaxfr;ksa dk leUo; fd;k gAS ubZ national income using different methods of O;oLFkk ds vuqlkj dnsa zh; y?kq m|ksx laxBu vc calculation. With the view to eliminating HkkSfrd lEifr;ksa vkSj thou fuf/k;ks]a Hkfo\"; fuf/k vkSj discrepancies found in their calculations, they have i’sa ku fuf/k;ksa rFkk lkoZtfud {ks= dh cpr dk vkadyu now coordinated the practices. As per the new djrk gSA nwljh vksj] Hkkjrh; fjtoZ cSad futh dEiuh arrangement, the CSO now estimates savings of the vkSj ?kjys w {ks= dh vU; foÙkh; cprksa dk dk;Z djrk gAS household sector, taking into account physical assets jk\"Vªh; vk; dk vkdyu djus eas Hkkjrh; fjtoZ cSad and life funds, provident and pension funds, and the }kjk dh tkus okyh nwljh Hkwfedk ;g gS fd ;g futh public sector. On the other hand, the RBI deals with dEifu;ksa dh la;qDr dEifu;ksa ds fy, Lda/k ifjorZu dh other financial savings of the private corporate sector ÁR;{k x.kuk djrk gSA and household sector. Another role played by the RBI in estimating the national income is that it directly 5) ;g ,d calculates inventory changes for the joint stock Lor=a ] xSj&ykHkdkjh vuqla/kku laLFkku gS ftldh companies of the private corporate sector. LFkkiuk 1956 eas vuqÁ;qDr vFkZ’kkL= ij 'kks/k djus rFkk jk\"Vªh; vk; dh x.kuk ds fy, vk¡dM+s vkSj lwpuk Ánku 5) National Council of Applied Economic Research djus ds mn~n’s ; ls dh xbZ FkhA ;g O;kogkfjd (NCAER): It is an independent, non-profit research vFkZ’kkL= eas Hkkjr dk Áeq[k vuqla/kku laLFkku gSA institution, was established in 1956 with the objective of conducting research on applied economics and 1.6.4. providing data and information for computation of national income. It is the premier research institute of fdlh n’s k dh jk\"Vªh; vk; dk Lrj ¼vkdkj½ fuEufyf[kr India in applied economics. dkjdksa }kjk fu/kkZfjr fd;k tkrk gS& 1) ÁÑfr ÁkÑfrd rRoksa dks /ku ds 1.6.4. Factors Determining Level (Size) of National Income mRiknu esa o`f) djus ds fy, Ánku djrh gSA ftu n’s kksa eas ÁkÑfrd lalk/ku Ápqj ek=k eas gS] tSls& Hkwfe] The size of the national income of a country is determined mitkÅ Hkwfe] dk;s yk vkSj yksgk] fctyh ds lalk/ku by the following factors: vkfn vko’;d [kfutksa dh jk\"Vªh; vk; cgqr vf/kd gksrh gS vkSj foÙk ds lgk;d lzksr ds lk/ku vf/kd gksrs 1) Natural Resources: Nature bestows natural elements to enhance the production of wealth. * Countries that are enriched with resources like, land, fertile soil, necessary minerals like coal and iron, power resources, etc., have higher national income, and vice-versa. Natural resources being *

44 lef\"V vFkZ'kkL= scarce have to be utilised fully. Some countries gaSA nqyZHk lalk/kuksa dk iw.kZr% nksgu fd;k tkuk pkfg,A having abundance of natural resources lag behind ÁkÑfrd lalk/kuksa dh vf/kdrk okys n’s k bu lalk/kuksa in the optimum utilisation of these resources results ds loksZÙke mi;ksx eas fiNM+ tkrs gSa vkSj blls jk\"Vªh; in inferior national income. This is the condition of vk; eas deh vkrh gSA ;g fo’o ds vf/kdka’k vfodflr most of the underdeveloped countries of the world. n’s kksa dh fLFkfr gSA Factors Determining Level (Size) of National Income Natural Resources ¼Ák—frd lalk/ku½ Labour ¼Je½ Capital ¼iw¡th½ Organisation ¼laxBu½ Social and Political Structure ¼lkekftd ,oa jktuhfrd lja puk½ 2) Labour: Labour is required for the production of 2) eqnzk dh mRifÙk ds fy, Je dh vko’;drk gksrh wealth. The workers must skilled as well as they gSA Jfedksa dks vius dk;Z eas n{k gksuk pkfg, rFkk should be sufficient in number. As regards per budh la[;k Hkh i;kZIr gksuh pkfg,A Áfr O;fDr vk; ds capita income, it is harmful for the country whether lEcU/k e]sa ;g n’s k ds fy, gkfudkjd gS] pkgs og de it is under-populated or over populated. Due to tula[;k okyk ;k vf/kd tula[;k okyk n’s k gkAsa shortage of labour the under-utilisation of natural Jfedksa dh deh ds dkj.k de tula[;k okys n’s k eas resource is a common feature of the under- ÁkÑfrd lalk/kuksa dk de mi;ksx ,d lkekU; ckr gSA populated country. Whereas, in an overly-populated tcfd vR;f/kd tula[;k okys n’s k esa Áfr O;fDr country low per capita income is due to excessive vkSlr vk; cgqr vf/kd gksus ds dkj.k gksrh gAS sharing of national income. 3) vk/kqfud e’khuksa vkSj midj.kksa ds vHkko esa 3) Capital: Efficient production is only possible with the n{krkiw.kZ mRiknu vlaHko gSA vYi fodflr n’s kksa dh latest machinery and equipment‟s. The national jk\"Vªh; vk; iw¡th ds vHkko ds dkj.k de gSA fdlh n’s k income of under-developed countries is low because eas iw¡th fuekZ.k dh nj rhoz dh tkuh pkfg, rkfd rhoz of lack of capital. The rate of capital formation in a lao`f) dks c<+kok fn;k tk ldsA country should be accelerated to promote rapid growth. 4) mPp Lrj ds mRiknu ds fy, dq’ky Áca/ku vko’;d gSA blfy,] mPp Lrj dh vk; okys n’s k esa 4) Organisation: Skilled management is mandatory for vkS|ksfxd laxBu ds fy, dq’ky urs `Ro miyC/k gksuk a high level of production. Thus, the skilled pkfg,A employment in the industrial sector is available on the basis of higher level of income. 5) lkekftd vkSj jktuhfrd laLFkk,¡ vkfFkZd fodkl dh xfr de dj nrs h 5) Social and Political Structure: Social and political gaS ;k mldk fodkl rhoz dj nrs h gaSA vYi fodflr institutions either retard economic development or n’s kksa eas] cgqr lh ck/kk,¡ gSa tks lao`f) dks ckf/kr djrh accelerate it. In under-developed countries, there are gSaA Hkkjr eas fdlh m|e ds many barriers which hamper the progress. For cqfu;knh fodkl eas lcls cM+h ck/kk la;qDr ifjokj example, in India biggest barrier for the fundamental O;oLFkk vkSj tkfr ÁFkk dk Ápyu gSA development of an enterprise is the prevalence of joint family system and caste system. yksdrkaf=d laLFkk,¡ mPp jk\"Vªh; vk; eas ;ksxnku nsrh gSaA fdlh n’s k dh jktuhfrd lajpuk dq’ky mRiknu dh Democratic institutions are contributively to a high n`f\"V ls Hkh egÙoiw.kZ gksrh gAS dkuuw ,oa O;oLFkk dk national income. The political structure of a country is l[r fu\"iknu vkSj l’kDr o vHkz\"V Á’kklu ,sls dkjd also important from the view point of efficient gaS tks vkfFkZd fodkl dks c<k+ ok nrs s gSa vkSj jk\"Vªh; vk; production. Strict execution of law and order, and a dk mPp Lrj ÁkIr djrs gaSA sound and incorruptible administration are factors which promote economic development and obtain a high level of national income. 1.6.5. Importance of Measurement of 1.6.5. National Income fdlh ns’k ds fy, jk\"Vªh; vk; dh x.kuk cgqr egÙoiw.kZ gSA jk\"Vªh; vk; ds egÙoiw.kZ mi;ksx fuEufyf[kr gaS& National income computation is very important for a country. The important uses of national income are * described below: *

lef\"V vFkZ'kkL= dk ifjp; 45 Importance of Measurement of National Income Reveals Overall Production Performance Analysis of the Economy ¼lexz mRiknu fu\"iknu Kkr gksuk½ ¼vFkZO;oLFkk dk fo’ys\"k.k½ Show the Contribution made by Various Sectors Distribution of National Income among Different Categories ¼fofHkUu {ks=ksa }kjk fd, x, ;ksxnku dk ÁdVhdj.k½ ¼fofHkUu Jsf.k;ksa ds e/; jk\"Vªh; vk; dk forj.k½ Contain the Figures of Consumption, Saving and Investment Assists in Comparison among Countries ¼cpr ,oa fuos’k vk¡dM+ksa dk fu;a=.k½ ¼ns’kksa ds e/; rqyuk eas lgk;d½ Valuable Guide to Economic Policy ¼vkfFkZd uhfr ds fy, eYw ;oku ekxnZ f’kZdk½ 1) Reveals Overall Production Performance: The 1) lHkh {ks=ksa ls overall performance of the economy from all quarters vFkZO;oLFkk ds lexz Án’kZu dk ÁdVu jk\"Vªh; vk; ds is disclosed by the estimates of national income. It is vuqekuksa }kjk fd;k x;k gSA ;g fdlh o\"kZ esa mRiknu done by evaluating the level of production in a ds Lrj dk eYw ;kadu djds fd;k tkrk gAS Áfr O;fDr particular year. Per capita income is the assessment of vk; O;fDr;ksa ds vkSlr thou Lrj dk eYw ;kadu gSA the average living standard of the people. bl Ádkj] Thus, Per Capita Income = National Income / Total Population. 2) ,d vof/k ds nkSjku jk\"Vªh; vk; vuqekuksa dk fo’ys\"k.k djds ge tku ldrs gSa fd 2) Analysis of the Economy: By analysing national vFkZO;oLFkk esa o`f) ;k fLFkjrk vFkok deh gks jgh gSA income estimates over a period of time, we can know ;fn o\"kZ esa jk\"Vªh; vk; esa o`f) gbq Z gS] rks bldk rkRi;Z whether the economy is growing, stagnant or gS fd vFkZO;oLFkk eas o`f) gks jgh gS vkSj ;fn jk\"Vªh; declining. If there is an increase in national income vk; vÁHkkfor jgrh gks] rks ;g bafxr djrk gS fd over the years, it means that the economy is growing. vFkZO;oLFkk eas fLFkjrk gAS ijUrq ;fn ,d le; eas And if the national income remains unaffected, it jk\"Vªh; vk; eas deh vk jgh gS rks blls ;g Kkr gksrk indicates that economy is stagnant. But if the national gS fd vFkZO;oLFkk esa deh gks jgh gSA income is declining over a period of time, it indicates that the economy is deteriorating. 3) Display of Contribution made by Various 3) Sectors: The national income estimates display the contribution made by various sectors of the jk\"Vªh; vk; vuqeku eas vFkZO;oLFkk ds economy, such as agriculture, manufacturing in- fofHkUu {ks=ksa }kjk tSls&—f\"k] fofuekZ.k] m|ksx O;kikj dustry, trade, etc., to the national income. vkfn }kjk jk\"Vªh; vk; esa fd, x, ;ksxnku dks Ánf’kZr fd;k tkrk gSA 4) Distribution of National Income among Different Categories: National income estimates emphasise 4) on the distribution of national income among different categories or income such as wages, jk\"Vªh; vk; dk vuqeku fofHkUu oxksZa ;k profits, rents and interest. The distribution of vk;] tSls& etnwjh] ykHk] fdjk;k vkSj C;kt ds e/; national income between wages on the one hand and jk\"Vªh; vk; ds forj.k ij cy nsrk gSA ,d vksj profits, interest, rent on the other, is of special etnwjh ds e/; jk\"Vªh; vk; dk forj.k vkSj nwljh significance, since inequality in personal incomes vksj ykHk] C;kt] fdjk;k dk fo’ks\"k egÙo gS] pw¡fd depends to a large extent on the share of the working O;fDrxr vk; esa vlekurk dk;Z djus okys oxksZa classes (i.e., wages) and the share of property ¼vFkkZr~] etnwjh½ vkSj lEifÙk ds Lokfe;ksa ¼vFkkZr~ owners (i.e., rents, profits and interest). fdjk;k] ykHk vkSj C;kt½ dh Hkkxsnkjh ij vf/kdka’kr% fuHkZj djrh gSA 5) Contain the Figures of Consumption, Saving and Investment: The national income estimates also 5) enclose the figures of consumption, saving and investment in the economy. Information regarding jk\"Vªh; vk; vuqeku eas miHkksx] cpr vkSj consumption, saving and investment is fundamental vFkZO;oLFkk eas fuos’k ds vkd¡ M+s fn, x, gSaA vkfFkZd for any economic study regarding economic growth fodkl vkSj ;kstuk ls lEcfU/kr fdlh vkfFkZd v/;;u and planning. ds fy, miHkksx] cpr vkSj fuos’k ls lEcfU/kr lwpuk eyw Hkwr rRo gSA * *

46 lef\"V vFkZ'kkL= 6) Assists in Comparison among Countries: With the 6) fo’o ds help of national income estimates of various countries fofHkUu n’s kksa dh jk\"Vªh; vk; vuqekuksa dh lgk;rk ls of the world, we can compare the standards of living ge thou Lrj vkSj mu n’s kksa ds O;fDr;ksa ds vkfFkZd and the levels of economic welfare of the people dY;k.k ds Lrjksa dh rqyuk dj ldrs gSaA bl Á;kstu living in those countries. For this purpose, national gsrq mRiknu vkSj eYw ; Lrjksa eas varj ds fy, jk\"Vªh; income figures are adjusted for differences in vk; ds vk¡dM+ksa dks lek;ksftr fd;k tkrk gSA production and in price levels. 7) vk; 7) Valuable Guide to Economic Policy: National vueq ku vkfFkdZ uhfr dk ekxZn’kdZ g]S fo’ks\"k :i ls income estimates are pathfinders to economic fodkl ;kstuk vof/k ds nkjS ku vkSj vFkOZ ;oLFkk esa lfØ; policy, especially during the period of development ljdkj ds gLrk{ksi ds nkSjkuA jk\"Vªh; vk; ds vk¡dM+ksa dks planning and active government intervention in the ns[kdj] ljdkj ;g fu/kkZfjr dj ldrh gS fd vFkOZ ;oLFkk economy. By looking at the national income ;k blds fofHkUu {ks=ksa dks fdlh of` ) ;k fofu;eu dh statistics, the government can decide if the vko’;drk gS ;k ughaA okLro es]a jk\"Vhª ; vk; ds vuqeku economy or its various sectors need any boost or ds fcuk dksbZ fodkl ;kstuk laHko ugha gSA jk\"Vªh; vk; dk regulation. In fact, no development planning is vuqeku ;kstukvksa ds fuek.Z k vkSj mRiknu ds y{;ksa dks possible without national income estimates. fu/kkfZ jr djus ds fy, cgrq mi;ksxh lkfcr gksrk gSA National income estimates prove very useful for formulating plans and fixing targets of production. 1.6.6. 1.6.6. Basic Concepts Related to Components jk\"Vªh; vk; ds ?kVdksa ls lEcfU/kr fuEufyf[kr eyw Hkrw of National Income vo/kkj.kk,¡ gSa] tks jk\"Vªh; vk; ds ?kVdksa dh x.kuk dk vk/kkj Ánku djrh gSa& Following are the basic concepts related to the 1) ldy dk vFkZ gS fd u components of national income which provide base for computation of components of national income: rks dksbZ iw¡th miHkksx vkSj u gh dkbs Z eYw ; gzkl ;k dkbs Z 1) Gross and Net Concepts: Gross means that neither dVkSrh dh tkuh pkfg,A tcfd] 'kq) dk rkRi;Z igys ls fd, x, iw¡th miHkksx vkSj dVkSrh ds vuqÁ;ksx ls any capital consumption nor any depreciation or gSA bl Ádkj] eYw ;gzkl ldy ;ksx vkSj 'kq) ;ksx ds any deduction has to be made. Whereas, net implies e/; dk varj ewY; gSA the application of capital consumption and deductions already been done. Thus, depreciation is 2) fdlh fo’ks\"k o\"kZ ds the value of difference between the gross total and fy, fo’o ds dqy mRiknu eas muds ;ksxnku ds dkj.k the net total. n’s k ds fdlh Hkh lkekU; fuoklh }kjk vftZr dqy vk; dks dgk tkrk gAS jk\"Vªh; 'kCn dk vFkZ gS Net Income = Gross Income  Depreciation dqy lap; ls gS ftlesa vk; ds lHkh Ádkj ds dkjdksa dks lfEefyr fd;k x;k gS ftls n’s k ds lkekU; fuoklh 2) National and Domestic Concepts: The total income }kjk n’s k ;k fons’k ls fn, x, mRiknu ds mu dkjdksa earned by any normal resident of the country due to dks vuns[kk djrs gq, vf/kxgz .k fd;k tk jgk gSA blds his/her contribution in the total production of the foijhr] ,d n’s k dh iwoZfu/kkfZ jr HkkSxksfyd lhek ls ÁkIr world for a particular year is termed as national mRiknu ;k vk; ds ekiu dh laHkkouk] ftls ?kjys w {ks= Income. The term national refers to total dgk tkrk gSA ifj.kkeLo#i mRikn dks ?kjys w mRikn ds accumulation covering all types of factors of income, :i eas tkuk tkrk gSA being acquired by the normal resident of the country ignoring those factors of production supplied by them 3) cktkj ewY;ksa ij either from home or abroad. Contrary to this the jk\"Vªh; mRikn ds eYw ;kadu ds ckn dqy jkf’k dks possibility of measuring the aggregate output or lanfHkZr djrk gS] vFkkZr~ okLro eas varr% Øsrkvksa }kjk income deriving from the predefined geographical Hkqxrku fd;k tkrk gSA tcfd] jk\"Vªh; mRikn dk eYw ; boundary of a country, termed as “domestic territory”. vkSj ?kVd ykxr ij eYw ;kadu fd;k tkrk gS] vafre The resulting product is known as domestic product. mRiknu esa ;ksxnku nsus okys mRiknu ds ?kVdksa }kjk vftZr dqy vk; dh jkf’k gSA National Factoral Income from Abroad (NFIA) = Factor income received from abroad – Factor * income paid to overseas residents 3) Market Prices and Factor Costs: After the valuation of the national product at market prices refers to the total amount i.e., actually paid by the ultimately buyers. Whereas, the national product being valued and assessed at factor cost is the amount of total earnings accrued by the factors of production contributing to the final output. Market Price = Factor Cost + Indirect Taxes  Subsidies *

lef\"V vFkZ'kkL= dk ifjp; 47 1.6.7. Various Components of National 1.6.7. jk\"Vªh; vk; ds ?kVd fuEufyf[kr gSa& Income Following are the components of national income: Various Components of National Income Gross Domestic Product (GDP) ¼ldy ?kjsyw mRikn½ Gross National Product ¼ldy jk\"Vªh; mRikn½ Net Domestic Product (NDP) ¼'kq) ?kjsyw mRikn½ Net National Product (NNP) ¼'kq) jk\"Vªh; mRikn½ Domestic Income ¼?kjsyw vk;½ Per Capita Income ¼Áfr O;fDr vk;½ Private Income ¼futh vk;½ Disposable Income (DI) ¼Á;ksT; vk;½ Personal Income (PI) ¼O;fDrxr vk;½ Purchasing Power Parity ¼Ø;'kfDr lerk½ Growth Rate ¼fodkl nj½ 1.6.7.1. Gross Domestic Product (GDP) 1.6.7.1. orZeku foÙkh; o\"kZ esa jk\"Vªh; lhek ds Hkhrj mRikfnr lHkh Gross domestic product is the equivalent value of all mRiknksa vkSj lsokvksa dk ldy ?kjsyw mRikn ,d leku products and services produced within the national ewY; gSA boundary in the present financial year. 'kCn ^jk\"Vhª ; lhek* dks fuEufyf[kr rjhds ls le>k;k x;k gS& The term “National boundary” is explained in the 1) bleas ,d n’s k ds {ks=h; ty ds lkFk jktuhfrd following manner: 1) It comprised of particular region present inside the lhekvksa ds Hkhrj fo|eku fo’ks\"k {ks= lfEefyr FksA political boundaries together with the territorial 2) blesa Hkkjr ds lHkh fuoklh lfEefyr gSa tks nks ;k nks waters of a nation. ls vf/kd jk\"Vª ds e/; ;k=k eas vkus okys fofHkUu tgktkas vkSj foeku esa pkyd ny ds lnL; gSaA 2) It comprised of all resident of India who are the members of crew in different ships and aircrafts 3) blesa Hkkjr ds lHkh fuoklh lfEefyr gSa] tks eNyh involving in journey between two or more nation. idM+us ds tgktk]sa rys vkSj ÁkÑfrd xSl fjlko] vfLFkj canjxkgksa dks laHkkyus esa lfEefyr gS] tks 3) It comprised of all resident of India who are involves vUrjkZ\"Vªh; ty eas dk;Z dj jgs gSa ;k bleas os lfEefyr in handling of fishing vessels, oil and natural gas rigs, gaS tks fo’ks\"k vf/kdkj gksus ds ckn gh dqN dke fudkyus floating platforms which are functioning in the eas lfEefyr gaSA international waters or it include those who are involve in extracting of some work only after having 4) bleas fofHkUu n’s kksa eas fLFkr fdlh jk\"Vª ds nrw koklks]a special rights. okf.kT; vkSj lSU; Áfr\"Bku Hkh lfEefyr gaSA 4) It also comprised of embassies, consulates, and 1) fdlh fof’k\"V foÙkh; o\"kZ esa military establishments of a nation situated in various fdlh ns’k dh lhekvksa ds e/; mRikfnr lHkh oLrqvksa ,oa countries. lsokvksa dk cktkj ewY;] bldh x.kuk GDP at Market Price and Factor Cost fuEuor~ dh tk ldrh gSa& 1) GDP at Market Price: The market value of all 2) ,d jk\"Vª ds e/; products and services produced inside the boundaries mRikndksa }kjk tksM+k x;k dqy 'kq) eYw ; vk; ds :i eas of a country in a specific financial year is termed as mRiknu dkjdksa ds Lokfe;ksa dks vkoafVr fd;k tkrk gSA Gross domestic product at market price. It can be bl Ádkj] dqy ?kVd vk; vkSj LFkk;h iw¡th miHkksx calculated as ¼eYw ;gzkl½ dks tkMs +dj th-Mh-ih- dh x.kuk dh tk GDP at Market Price = GDP at Factor Cost + * Indirect Taxes – Subsidies 2) GDP at Factor Cost: The total net value added by the producers inside a nation is allocated to the owners of factors of production in the form of income. Thus, by adding the total factor incomes and fixed capital consumption (depreciation) the *

48 lef\"V vFkZ'kkL= GDP can be calculated. GDP at Factor Cost is ldrh gSA th-Mh-ih- ds ek/;e ls ?kVd ykxr dh th- calculated through GDP at Market Price in the Mh-ih- dh x.kuk cktkj ewY; ij fuEu çdkj ls fd;k following way: tkrk gS& GDP at Factor Cost = GDP at Market Price – Indirect Taxes + Subsidies ?kVd ykxr ij th-Mh-ih- eas fuEu lfEefyr gksrs gSa& i) deZpkfj;ksa dks etnwjh] osru vkSj HkÙks ds :i eas GDP at factor cost is comprised of the following: i) The compensation made to employees in the form fn;k x;k ikfjJfedA ii) ,dhÑr vkSj xSj&,dhÑr QeksaZ }kjk ykHk ds :i eas of wages, salaries, and allowances. ii) The operating surplus earned in form of profit by vftZr ifjpkyu vf/k’ks\"kA iii) Lo&jkstxkj ls l`ftr fefJr vk;A the integrated and non-integrated firms. iii) The mixed income generated from the self- employment. Example 1: From the following data calculate Gross uhps fn, x, vk¡dM+ksa ls cktkj eYw ; ij Domestic Product at market price. ldy ?kjys w mRikn ¼thMhih½ dh x.kuk dhft,A Item ` in Crores ` National Income jk\"Vªh; vk; 10,000 Depreciation eYw ;gzkl 550 Subsidies lfClMh 150 Indirect taxes vÁR;{k dj 800 Imports vk;kr 1000 Exports fu;kZr 1200 Solution: As per Income Method, GDP at Market Price = GDP at Factor Cost + Indirect Taxes – Subsidies = 10,000 + 800 – 150 = `10,650 crores Note: GDP at Factor Cost is also called as National Income. ?kVd ykxr ij ldy ?kjys w mRikn dks jk\"Vªh; vk; Hkh dgk tkrk gSA Nominal and Real GDP dksbZ Hkh jk\"Vª ds fodkl vkSj lao`f} dk vklkuh ls vuqeku yxk One can easily estimate the development and growth of ldrk gS tc fuEufyf[kr foÙkh; lk/ku çnku fd, tkrs gaS& a nation when the following financial tools are 1) tc ldy ?kjsyw mRikn provided: 1) Nominal GDP: When GDP is calculated at current dh x.kuk orZeku cktkj eYw ; ij dh tkrh gS rks mls dgk tkrk gSA fdlh market prices then it is termed as Nominal Gross Domestic Product. GDP of a nation is calculated n’s k ds ldy ?kjys w mRikn dh x.kuk ,d fo’ks\"k foÙkh; as the equivalent value of all produced goods and o\"kZ ds nkSjku lHkh mRikfnr oLrqvksa rFkk lsokvksa ds services during a particular financial year. lerqY; eYw ; ds :i eas dh tkrh gAS ukeek= th-Mh-ih- okLrfod th-Mh-ih- ls fHkUu gksrk gS D;kfsa d blesa dqy Nominal GDP is different to the real GDP as it ykxr eYw ; eas o`f} ds dkj.k ykxr eYw ; eas ifjorZu includes the changes in cost prices because of an lfEefyr gksrk gSA lkekU;r%] vFkZ’kkL=h ldy ?kjys w increase in the total cost price. Normally, an mRikn dks okLrfod th-Mh-ih- eas ifjofrZr djus ds fy, economist is using the factors of GDP to convert th-Mh-ih- ds dkjdksa dk mi;ksx dj jgs gSa vkSj bls the nominal GDP to real GDP and it is also refers as current dollar GDP or chained dollar GDP. ;k ds :i eas lanfHkZr fd;k tkrk gSA 2) Real GDP: When the GDP is evaluated after having all adjustment related to the inflation is 2) tc eqnzk LQhfr ls termed as Real Gross Domestic Product. lEc} lHkh lek;kstu ds i'pkr~ ldy ?kjys w mRikn dk eYw ;kadu fd;k tk, rks mls It helps in analyzing the rate of all goods and dgk tkrk gSA ;g fdlh jk\"Vª eas fdlh o\"kZ services produced in a nation during a particular fo’ks\"k foÙkh; o\"kZ ds nkSjku mRikfnr lHkh oLrqvksa vkSj financial year. lsokvksa dh nj dk fo’ys\"k.k djus eas lgk;d gksrk gSA bls vk/kkj o\"kZ ds eYw ;ksa eas vfHkO;Dr fd;k tk ldrk gS It can be expressed in the prices of foundation year rFkk bls and also termed as a fixed cost price, inflation **

lef\"V vFk'Z kkL= dk ifjp; 49 rectified GDP or fixed dollar GDP. Real GDP is ;k LFkk;h MkWyj th-Mh-ih- ds :i used as a trustworthy indicator to identify the eas Hkh dgk tkrk gSA okLrfod ldy ?kjys w mRikn dk economic growth of a nation and exclusively it is ç;ksx n’s k ds vkfFkdZ fodkl dh igpku djus ds fy, used for identifying the production which is free fo’oluh; ladsrd ds :i esa fd;k tkrk gS vkSj eqnzk esa from the effect of fluctuation in the currency. mrkj&p<+ko ds çHkko ls eqDr mRiknu dh igpku djus ds fy, bldk ç;ksx fo’ks\"k :i ls fd;k tkrk gSA Difference between Nominal GDP and Real GDP ½ Basis of Difference Nominal GDP Real GDP ½ ½ Meaning It is equivalent to the value of all produced goods It is factor of GDP which change with the Consideration and services during a particular financial year. changes in general price level. ldy ?kjys w Inflation ;g fdlh fo’ks\"k foÙkh; o\"kZ ds nkSjku lHkh mRikfnr mRikn dk ,slk dkjd tks lkekU; eYw ; Lrj oLrqvksa vkSj lsokvksa ds ewY; ds cjkcj gksrk gAS ½ eas ifjorZu ds lkFk cnyrk jgrk gAS ½ of It does not adjust as per inflation. ;g eqnzkLQhfr All adjustments related to inflation are included in the GDP eqnzk LQhfr ls lEcfU/kr ds vuqlkj lek;ksftr ugha gksrk gSA½ lHkh lek;kstu th-Mh-ih- eas lfEefyr gaSA½ Consideration of It is calculated at current market price. bldh It is calculated at regular price or beginning Price year price. bls lrr~ eYw ; ij ;k çkjfEHkd Worth orZeku cktkj ewY; ij x.kuk dh tkrh gSA½ Purpose o\"kZ eYw ; ij ifjdfyr fd;k tkrk gSA½ Measurement It is of high worth. ;g mPp eYw ; dk gksrk gSA½ It is of low worth. ;g de ewY; dk gksrk gSA½ It is used for comparing the different quarters of a It is used for comparing the two or more particular financial year. ;g ,d fo’ks\"k foÙkh; financial year bldk mi;ksx nks ;k nks ls o\"kZ ds fofHkUu {ks=ksa dh rqyuk djus ds fy, mi;ksx vf/kd foÙkh; o\"kZ dh rqyuk djus ds fy, fd;k tkrk gSA½ fd;k tkrk gSA½ Its measurement is complex in nature. bldk It is better way to measures the economic growth of a nation. ;g jk\"Vª ds vkfFkZd ekiu çd`fr esa tfVy gSA½ fodkl dks ekiusa dk csgrj rjhdk gSA½ Limitations of GDP ldy ?kjys w mRikn dh lhek,¡ bl çdkj gaS& The limitations of GDP are as follows: 1) Leisure/Human Costs: One of important factor as 1) vodk’k le; ;k ekuo ykxr ds #i eas ,d egÙoiw.kZ dkjd dks iw.kZr% visf{kr dj leisure time or human cost is completely ignored to fn;k tkrk gS ftls jk\"Vª ds ldy ?kjys w mRikn eas be included in the GDP of a nation. lfEefyr djus dk iw.kZ :i ls mis{kk djrk gSA fuf\"Ø;@vodk’k le; og le; gksrk gS] tc deZpkjh Leisure time is the free time during which employee dk;Z ugha dj jgk gksrk gSA blh çdkj visf{kr mRiknu is not working. In similar way, the contributions or dks çkIr djus ds fy, yksxksa }kjk fd, x, ;ksxnku ;k painstaking efforts made by the people to achieve Je lk/; ç;klksa dks Hkh vun[s kk dj fn;k tkrk gAS the required output is also ignored. vktdy dk;Z ds LFkku ij deZpkjh lqjf{kr jgrs gSa vkSj viuh ukSdjh ds fy, de 'kkjhfjd ç;klksa dh Nowadays, the people are safe at work place and vko’;drk gksrh gSA vFkZO;oLFkk esa ,sls ifjorZu ldy required less physical efforts to perform their jobs. ?ksjyw mRikn ds ek/;e ls ugha ns[kk tk ldrk gSA Such changes in economy cannot be observed through GDP. 2) ,d vFkZO;oLFkk tgk¡ oLrq 2) Underground Economy: An economy where the fofue; ,oa udn ysunsu cktkj esa Ápfyr gS ;k barter and cash transactions are prevalent in the market or where economic transactions are deemed tgk¡ vkfFkZd ysunsu dks voS/k ekuk tkrk gS rks ,slh to be illegal then such economy is known as underground economy. vFkZO;oLFkk dks Hkwfexr vFkZO;oLFkk ds :i esa tkuk The trade of certain goods and services is completely tkrk gSA dqN oLrqvksa o lsokvksa dk O;kikj cktkj esa unlawful in the market but it actually performed by some people for gaining more profit. Such iw.kZ :i ls xSj dkuwuh ¼ÁfrcfU/kr½ gSA ysfdu okLro transactions are not included in the GDP. esa dqN O;fDr;ksa }kjk vf/kd ykHk ÁkIr djus ds For example, trafficking of illegal drugs, kidnapping etc. mn~ns’; ls ,slk O;kikj fd;k tkrk gSA bl Ádkj ds * laO;ogkj dks ldy ?kjsyw mRikn esa 'kkfey ugha fd;k tkrk gSA voS/k MªXl dh rLdjh] vigj.k vkfnA *

50 lef\"V vFkZ'kkL= 3) Harmful Side Effects: A bad effect in an economy 3) ,d vFkZO;oLFkk esa ,d nq\"çHkko cannot be represent through GDP of a nation like the jk\"Vª ds ldy ?kjsyw mRikn ds ek/;e ls çfrfuf/kRo ugha effect of pollution, population, overcrowding, global fd;k tk ldrk g]S tSls& çnw\"k.k] tula[;k] HkhM+HkkM+] warming and any other natural calamities that can oSf’od rkiu] vkjS fdlh Hkh vU; çkdf` rd vkinkvkas dk cause huge destruction. çHkko tks Hkkjh fouk’k dk dkj.k cu ldrk gSA 4) Non-Market Production: There are various non- 4) fofHkUu xSj&cktkj oLrq vkSj market goods and service but they are not lsok,¡ gS ijUrq mUgsa ldy ?kjys w mRikn eas ugha ekuk considered in GDP. Non market goods and tkrk gSA xSj&cktkj dh oLrqvksa vkSj lsokvksa dks iSls ds services are not provided for money but may be fy, çnku ugha fd;k tkrk gS] ijUrq vU; mRikn ;k exchanged for other product or services or for love lsokvksa ds fy, ;k I;kj vkSj ns[kHkky ds fy, and care. vknku&çnku fd;k tk ldrk gSA 1.6.7.2. Gross National Product 1.6.7.2. Ldy jk\"Vhª ; mRikn dh x.kuk fons’kh 'kq) ?kVd vk; ds lkFk The gross national product is calculated by adding the dyq ldy jk\"Vªh; mRikn dks tksM+dj dh tkrh gAS fons’k esa total GDP with the net factor incomes from abroad jgus okys fdlh Hkkjrh; fuoklh }kjk vftZr dyq vk; ds fy, (NFIA). NFIA is evaluated on account of total income fons’kh 'kq) ?kVd vk; dk ewY;kadu fd;k tkrk gS ftls Hkkjr earned by an Indian resident residing in foreign country ds fdlh vfuoklh }kjk vftZr dqy vk; ls ?kVk;k tkrk gAS which is deducted by the total income earned by a non- resident of India. + GNP = GDP + NFIA. tgk¡] Where, fons’kh 'k)q ?kVd vk; ¾ fons’k ls vftZr ?kVd vk;  NFIA = Factor income received from abroad – Factor fons’kh fuokfl;ksa dks Hkxq rku dh xbZ ?kVd vk; income paid to overseas residents ldy jk\"Vªh; mRikn ds fuEufyf[kr ?kVd gaS& Components of GNP 1) miHkksx O;;] Following are the components of GNP: 2) ljdkjh O;;] 1) Consumption Expenditure (C) 3) fuos’k O;;] 4) 'kq) fu;kZr] rFkk] 2) Government Expenditure (G) 5) 'kq) ?kVd Hkqxrku 3) Investment Expenditure (I) + + ++ 4) Net Exports (NX), and ldy jk\"Vªh; mRikn ds ?kVdksa dk Li\"Vhdj.k bl çdkj gS& 5) Net Factor Payments (NFP). 1) ;g ?kjsyw {ks= ds e/; miHkksx O;; dk GNP = C + G + I + NX +NFP ;ksx gS tks Hkkstu] oL=] vkJ; vkfn ls lEcfU/kr gSA ldy vukt mRiknu fuxe ,d ,slk çeq[k ?kVd gS The explanation of the components of GNP is as follows: tks ldy O;; dk yxHkx nks&frgkbZ gSA 1) Consumption (C): It refers to the sum of 2) ;g ldy O;; dk ,d vU; çeq[k consumption expenditure within the household sector ?kVd gS ftlesa ljdkjh deZpkfj;ksa dk osru dk Hkqxrku] which is related to food, clothing, shelter etc. It is one jk\"Vªh; lqj{kk ij fd, x, O;;] jkT; vkSj dsUnzh; of the major components of GNP which is nearly two- ekeyksa ij fd, x, O;; vkfn lfEefyr gAS csjkstxkj third of the aggregate expenditure. etnwjksa dks tks {kfriwfrZ feyrh gS] mls Hkh ljdkjh O;; ekuk tkrk gSA 2) Government Expenditure (G): It is the other major component of aggregate expenditure comprising the 3) lkekU;r% fuos’k O;;] ftleas iw¡th payment of salaries to the government employees, lEifÙk;ksa eas fuos’k ¼tSls Hkou] la;a= vkfn½] csgrj expenditure incurred on national defence, spending on mRiknu rduhd ds ç;ksx ds fy, fuos’k vkSj blesa state and central affairs etc. The compensations paid vkokl fuekZ.kksa eas fuos’k Hkh lfEefyr gSA to the unemployed labourers are also taken as the government expenditure. Hkfo\"; eas vf/kd mRiknu ds fy, O;olk; dh {kerk esa lq/kkj ds dkj.k ckWM vkSj LdU/k tSlh çfrHkwfr;ksa esa 3) Investment Expenditure (I): Generally, investment fuos’k ij fopkj ugha fd;k tkrk gSA expenditures are the business expenditures comprising of investment in capital assets (like building, plants * etc.), investment for employing better production technique and it also include the investment in housing constructions. Investment in securities like bonds and stock are not taken into consideration because such financial assets improve the capacity of a business to produce more in future. *

lef\"V vFkZ'kkL= dk ifjp; 51 4) Net Exports (NX): This component is derived by 4) ;g ?kVd fdlh jk\"Vª ds fu;kZr ls vk;kr deducting the imports from the exports of a nation. eas ?kVkdj çkIr fd;k tkrk gAS tc fon’s kh miHkksDrkvksa When goods and services are acquired by the foreign }kjk oLrvq ksa vkSj lsokvksa dk vf/kxgz .k fd;k tkrk gS consumers are termed as exports despite the fact when rc bl rF; ds ckotwn fd tc ?kjys w miHkksDrkvksa }kjk good and services are acquired by the domestic csgrj ,oa lsokvksa dk vf/kxzg.k fd;k tkrk gS] rks mUgsa consumers are termed as imports. vk;kr ds :i eas fu;kZr fd;k tkrk gSA 5) Net Factor Payments (NFP): This component is the 5) ;g ?kVd fonfs ’k;ksa dk ?kjys w ns’k net amount paid to the foreigners in exchange of eas oLrqvksa vkSj lsokvksa dk mRiknu djus ds fy, fuos’k employing them as input to produce goods and services ds :i eas mudksa yxkus ds cnys Hkqxrku dh tkus okyh in the domestic country. Further, this amount is deducted 'kq) jkf’k gSA blds vfrfjDr] ;g jkf’k mlh ?kjsyw by the amount received by selling service of same dkjdksa dh lsok dks nlw js ns’k dks cspdj çkIr dh xbZ domestic factors to the other country. jkf’k ls ?kVk nh tkrh gSA GNP at Market Price and Factor Cost 1) ;g x.kuk ,d 1) GNP at Market Price: It is calculated by multiplying o\"kZ fo’ks\"k esa çpfyr cktkj ewY; ds lkFk dqy mRiknu ls xq.kk djds dh tkrh gAS blfy,] ;g ml o\"kZ ds nkjS ku the total output with the market price prevailing in a mRikfnr mRiknksa vkSj lsokvksa ds dyq ewY; ds vfrfjDr particular year. Therefore, it represents as the net income fons’k ls 'kq) vk; ds #i esa çfrfuf/kÙo djrk gSA from abroad in addition to the total value of products and services produced during that particular year. + GNP at Market Price = GDP at Market Price + 2) bldh x.kuk NFIA. vçR;{k djksa vkSj lfClMh ds ifj.kke dks ?kVkdj dh tkrh gSA ;g ,d fo’ks\"k foÙkh; o\"kZ esa oLrqvksa vkSj 2) GNP at Factor Cost: It is calculated by deducting lsokvksa ds mRiknu esa gbq Z dqy ykxr dk vkdyu djus the result of indirect taxes and subsidies. It helps eas lgk;rk djrk gaSA in estimating the total cost incurred in the production of goods and services in a particular + financial year. 1.6.7.3. GNP at Factor Cost = GNP at Market Price – Net Indirect Taxes + Subsidies ldy ?kjys w mRikn eas eYw ;gzkl ds fy, dkbs Z çko/kku lfEefyr ugha gSA eYw ; gzkl dk vFkZ iw¡th miHkksx HkÙks ;k 1.6.7.3. Net Domestic Product (NDP) fLFkj iw¡th ds miHkksx dks lanfHkZr djrk gSA fdlh vFkZO;oLFkk ds fofHkUu {ks=ksa ls oLrqvksa vkSj lsokvksa ds fujis{k GDP does not include any provision for depreciation. çokg dh igpku djus ds fy, ;g vko’;d gS fd eYw ;gzkl Depreciation is also refers to capital consumption ij fopkj fd;k tk,A mRiknd fofHkUu {ks=ksa eas iw¡thxr allowances or consumption of fixed capital. In order to oLrqvksa dk mi;ksx dj jgs gaS] tSls fd e’khu] midj.k] ;a=] identify the absolute flow of goods and services from the Hkou] VªSDVj vkfn vkSj bu iw¡thxr oLrqvksa dk oLrqvksa ,oa different sectors of an economy, it is required to consider lsokvksa ds fuekZ.k dh çfØ;k ds nkSjku gzkl gksrk gSA ,d depreciation. In different sectors, producer are employing fo’ks\"k vof/k ds ckn ,slh iw¡thxr oLrqvksa ds lkFk iqu% çkIr capital goods such as machines, equipment, tools, buildings, fd, tkus dh vko’;drk gksrh gSA bl çdkj] bl rjg dh tractors, etc. and these capital goods are subject to lEifÙk ls çkIr vk; dk ,d Hkkx eYw ;gkz l HkÙks ds :i eas depreciate during the process of manufacturing of goods j[kk tkrk gAS ldy ?kjys w mRikn eas gkz l fudkydj and services. After a particular time period such capital vFkZO;oLFkk ds 'kq) ?kjsyw mRikn dh x.kuk dh tkrh gAS goods are needs to be restored with the fresh and modern capital goods. Thus, a part of the income derived from such blfy,] ewY;gzkl dks  asset is kept as depreciation allowance. By deducting the tkuk tkrk gSA ds #i eas Hkh depreciation from gross domestic product, the calculation of the net domestic product of an economy can be done. 1.6.7.4. 'k)q jk\"Vhª ; mRikn dh x.kuk ldy jk\"Vªh; mRikn ls NDP = GDP – Depreciation ewY;gkz l HkÙkk ?kVkdj dh tkrh gS ;k ;g 'kq) ?kjsyw mRikn dh jkf’k vkSj fons’kh 'k)q ?kVd vk; ds #i esa ekik tkrk gAS Therefore, Depreciation is also known as the tc fons’kh 'k)q ?kVd vk; dh ryq uk esa fons’kksa esa vf/kd gks consumption of a fixed capital. * 1.6.7.4. Net National Product (NNP) NNP is measured by deducting the amount of depreciation allowance from the GNP or it also measured as the sum of NDP and the net factor income from abroad. When factor income from abroad is more *

52 lef\"V vFkZ'kkL= than the factor income to abroad then NNP is greater rks 'k)q jk\"Vªh; mRikn] 'k)q ?kjsyw mRikn ls vf/kd gks ldrk than the NDP. On other hand, when the factor income gAS nwljh vksj] tc fons’kh ?kVdksa dh vk; varokZgksa dh ryq uk to abroad is more than the inflows, the NNP is lesser esa vf/kd gksrh gS] rks 'kq) jk\"Vhª ; mRikn] 'k)q ?kjsyw mRikn ls than the NDP. The NNP is equal to NDP when the net de gksrk gAS tc fons’kh 'k)q ?kVd vk; 'kwU; gksrh gS] rks factor income from abroad is zero. 'k)q jk\"Vªh; mRikn] 'k)q ?kjsyw mRikn ds cjkcj gksrk gAS blfy,] 'k)q jk\"Vhª ; mRikn dh x.kuk dh tk ldrh g&S Therefore, NNP can be calculated as NNP = NDP + NFIA + NNP at Market Price and Factor Cost 1) ’k)q jk\"Vªh; mRikn 1) NNP at Market Price: NNP at market price is used cktkj ewY; ij fdlh jk\"Vª }kjk fdlh fo’ks\"k foÙkh; o\"kZ esa mRikfnr oLrqvksa vkjS lsokvksa ds 'kq) ewY; dks ekius ds to measure the net value of the product and services fy, mi;ksx fd;k tkrk gAS bldh x.kuk ldy jk\"Vhª ; produced by a nation in a particular financial year. It mRikn ls LFkk;h iwt¡ h ¼ewY;gzkl½ ds miHkksx dks cktkj is calculated by subtracting the consumption of fixed ewY; ij ?kVkdj dh tkrh gSA blfy,] bldk lw= gS& capital (depreciation) from GNP at market price. Therefore, the formula is  NNP at Market Price = GNP at Market Price 2) ’kq) jk\"Vhª ;  Depreciation mRikn dk ç;ksx cktkj ewY; ij 'kq) mRiknu dks ekius ds fy, fd;k tkrk gSA blesa Lokfe;ksa }kjk çkIr dqy 2) NNP at Factor Cost: NNP at market price is used vk; dks ekik tkrk gS ftls mRiknu çfØ;k eas fuos’k ds to measure the net output at factor price. It #i eas mi;ksx fd;k tkrk gS vkSj blds cnys eas etnwjh measured the total income received by the owners vkSj osru] fdjk;k] ykHk vkfn ds #i eas vk; çkIr djrs of the factors involve in production. These factors gSaA ?kVd ykxr ij 'kq) jk\"Vªh; mRikn cktkj eYw ; ij are used as input in the production process and in 'kq) jk\"Vªh; mRikn ds fy, fHkUu gS] ijUrq bldh x.kuk return receive income in form of wages and vçR;{k djksa eas dVkSrh vkSj cktkj ewY; ij 'kq) jk\"Vªh; salaries, rents, profits, etc. NNP at factor cost is mRikn dks lfClMh tksM+dj dh tk ldrh gS& different to the NNP at market price but it can be calculated by deducting the indirect taxes and + adding the subsidies to the NNP at market price in ;k the following way:  + NNP at Factor Cost = NNP at Market Price – Indirect Taxes + Subsidies. blfy,] ?kVd ykxr ij 'kq) jk\"Vªh; mRikn fdlh jk\"Vª dh jk\"Vªh; vk; gksrh gSA Or = GNP at Market Price – Depreciation – Indirect cktkj eYw ; ij ,u-,u-ih-] ?kVd ykxr ij ,u-,u-ih- Taxes + Subsidies. ls vf/kd gksrk gS D;ksfa d ljdkj dks fn;k x;k Hkqxrku ¼vçR;{k dj½ ljdkj }kjk fn;k tkus okyk HkqXkrku Therefore, NNP at Factor Cost is the National ¼ljdkjh lfClMh½ ls Hkh vf/kd gksrk gS] blfy, ?kVd income of a nation. ykxr ij ,u-,u-ih- cktkj eYw ; iu ,u-,u-ih- ls vf/kd gks ldrk gS] ;fn ljdkj Hkqxrku ij vf/kd NwV NNP at market prices is generally more than the NNP at ns jgh gks ;k vçR;{k djksa ls vf/kd lfClMh ns jgh gksA factor cost as the payment made to the government (indirect taxes) is more than the payment made by the 1.6.7.5. government (government subsidies) even so NNP at factor ?kjys w vk; dks foÙkh; o\"kZ ds nkSjku fdlh ns’k eas cost can be more than the NNP at market prices only if the mRiknu ds ?kVdksa }kjk çkIr dwy vk; ds #i eas ekik government is providing more relaxation on the payments tkrk gSA fdlh jk\"Vª ds eyw lalk/ku ls ,slh vk; or when subsidies are more than the indirect taxes. vftZr dh tkrh gSA blesa ikfjJfed] osru] fdjk;k ¼x`g lEifÙk ij vftZr fdjk;k Hkh lfEefyr Fkk½] C;kt] 1.6.7.5. Domestic Income ykHkak’k] fuxeh; ¼ftlesa lkoZtfud miØeksa }kjk vftZr vf/k’ks\"k dk çfr/kkfjr ykHk gksrk gS½ rFkk fefJr vk; Domestic income is measured as the total income received ftleas mu Qeks± dk fufgr ykHk gksrk gS tks dkuwuh by the factors of production inside a particular nation bdkbZ ;k Lofu;ksftr O;fDr] lk>snkjh QeZ vkfn ds #i during the course of financial year. Such income is generated from the native resources of a nation. It * comprised of wages, salaries, rent (also comprising the rent earned on house property), interest, dividends, retained profits of the corporate (also comprise the surplus earned by the public undertakings), and mixed income that is the comprised profits of those firms which are integrated or operating as legal entity or a self-employed *

lef\"V vFk'Z kkL= dk ifjp; 53 persons, a partnership firm etc. Therefore, the net income eas lesfdr vFkok çpfyr gksrs gSaA blfy,] fon’s kh 'k)q from abroad is not taken into consideration in the domestic vk; dks ?kjys w vk; eas /;ku eas ugha j[kk tkrk gS vkSj income and it can be calculated as: bldh x.kuk fuEu #i esa dh tk ldrh gS& Domestic Income = National Income – Net Income earned from abroad  1.6.7.6. Private Income 1.6.7.6. futh vk; dks futh O;fDr;ksa ;k QeksaZ }kjk çkIr dqy vk; Private income is measured as the total income received by eas ekik tkrk gS] pkgs os mRiknd gksa ;k vuqRiknd gksa vkSj the private individuals or firms regardless to the resources ;g fuxeksa }kjk vkjf{kr vk; lfEefyr ugha gSA bldh whether they are productive or non-productive and it is not x.kuk ?kVd Ykkxr ij jk\"Vªh; vk; ;k 'kq) jk\"Vªh; vk; ls including the incomes kept as reserved by the corporations. fo’ks\"k çko/kkuksa dks lfEefyr djrs gq, vkSj NksM+dj dh tkrh It is calculated by including and excluding the particular gSA i’sa ku] csjkstxkjh HkÙk]s chekjh rFkk vU; lkekftd lqj{kk provisions from the national income or NNP at factor cost. ykHkk]sa fon’s kksa ls migkj rFkk /ku vkfn dk LFkkukarj.k The transfer payments like pensions, unemployment YkkVfj;ksa ls ;k ?kqM+lokjh ls gksus okyh vçR;kf’kr vk;] rFkk allowances, sickness and other social security benefits, gifts ljdkjh _.k ij C;kt tSls ?kVd ykxr ij 'k)q jk\"Vªh; and remittances from abroad, major gains from lotteries or mRikn dks tksM+ fn;k tkrk gSA blds ifj.kkeLo#i ljdkjh from horse racing, and interest on public debt are added to foHkkxksa ls vk;] ljdkjh miØeksa ls vk; rFkk ljdkjh the NNP at factor cost. The result will be subtracted through miØeksa ls vkf/kD; vkSj deZpkfj;ksa dh lkekftd lqj{kk the provisions like income from government departments as ;kstukvk]sa tSls& Hkfo\"; fuf/k] thou chek vkfn eas va’knku well as surpluses from public undertakings, and employees‟ ds ek/;e ls ?kVk;k tk,xkA futh vk; dh x.kuk contribution to social security schemes such as provident fuEufyf[kr çdkj ls dh tkrh gS& funds, life insurance, etc. The calculation of private income is in the following way: futh vk; ¾ jk\"Vªh; vk; ¼;k ?kVd ykxr ij ,u-,u-ih-½ + gLrkarj.k Hkqxrku + lkoZtfud _.k ij C;kt Private Income = National Income (or NNP at Factor Cost) + Transfer Payments + Interest  lkekftd lqj{kk  lkoZtfud miØeksa ds on Public Debt – Social Security – ykHk vkSj vkf/kD; Profits and Surpluses of Public Undertakings 1.6.7.7. 1.6.7.7. Per Capita Income fdlh ns’k dh çfr O;fDr vk; dks fof’k\"V foÙkh; o\"kZ ds nkSjku yksxksa dh vkSlr vk; ds #i eas fy;k tkrk gSA orZeku Per capita income of a nation is taken as the average vkSj LFkk;h ewY; ij bldh x.kuk dh tk ldrh gAS income of the people during a course of specific financial year. It can be calculated at current price as o\"kZ 2020 dh çfr O;fDr vk; dh well as at the fixed price. For example, the per capita x.kuk ml n’s k dh jk\"Vªh; vk; dks Ok\"kZ 2020 ds dqy income for the year 2020 would be calculated by tula[;k }kjk foHkkftr djds dh tkrh gSA nlw js 'kCnksa eas] dividing the national income of a nation with the total bls fdlh n’s k ;k HkkSxksfyd {ks= eas jgus okys çR;sd O;fDr population of that nation during the year 2020. In other }kjk vftZr eqnkz dh jkf’k ds #i eas ekik tkrk gS ;k bldk words, it is measured as the amount of money earned by mi;ksx {ks= ds fy, vkSlr çfr O;fDr vk; tkuus vkSj each person residing inside a nation or geographic tula[;k ds thou Lrj dk vkadyu djus ds fy, fd;k region or it is utilised to ascertain the average per- tkrk gSA person income for an area and to estimate the standard of living and quality of life of the population. 2020 ds fy, çfr O;fDr 2020 ds fy, jk\"Vªh; vk; Per Capita Income for 2020 = National Income for vk; ¾ 2020 dh tula[;k 2020/Population of 2020 1.6.7.8. 1.6.7.8. Personal Income (PI) O;fDrxr vk; dks foÙkh; o\"kZ ds ,d fof’k\"V vof/k ds nkSjku O;fDr ;k ifjokj }kjk vftZr dqy vk; ds :i esa Personal income is measured as the total income earned by ekik tkrk gSA blesa osru ;k etnwjh ls çkIr vk;] fuf\"Ø; the individuals or households during a specific course of m|eksa ls vftZr ykHk] C;kt] ykHkka’k vkSj x`g lEifÙk ij financial year. It comprised of income from salary or fdjk;k çkIr gksrk gSA ;g jk\"Vªh; vk; ds fy, fHkUu gS wages, profits earned from an inactive enterprises, D;ksafd ifjokj okLro esa vk; çkIr ugha dj jgk gS tks dividend, interest, and rent receives on house property. It lkekftd lqj{kk ;ksxnkuksa] fuxeh; vk; djksa vkSj vforfjr is differ to the national income because the household is fuxeh; ykHkksa ls vftZr gSA gLrkarj.k ds Hkqxrku dks Hkh not actually receiving income which is earned from social blfy, oftZr fd;k tkrk gS] D;ksafd Hkfo\"; esa muds YkkHk security contributions, corporate income taxes and çkIr gksaxsA Hkqxrku o`}koLFkk isa’ku] csjkstxkjh minku jkgr undistributed corporate profits. The transfer payments are also excluded because their benefits will receive in future, * the payments may related to old-age pensions, *

54 lef\"V vFkZ'kkL= unemployment gratuity, relief payments, interest payment Hkqxrku] lkoZtkfud _.k ij C;kt vkkfn ls lEcfU/kr gks on the public debt, etc. simply, it is calculated in the ldrk gSA lkekU;r%] bldh x.kuk fuEufyf[kr rjhds ls following way: dh tkrh gS& Personal Income = NNP at Factor Cost – Undistributed  Profits – Corporate Taxes + Transfer Payments  1.6.7.9. Disposable Income (DI) 1.6.7.9. ljdkj dks viuh O;fDrxr vk; ls O;fDrxr djksa dk The individual or households are remains with the Hkqxrku djus ds ckn O;fDr ;k ifjokj tks vk; cprh gS residual income after making payment of personal taxes mls Á;ksT; vk; dgrs gSaA O;fDrxr djksa eas vk;dj futh to the government from their personal income. The lEifÙk dj vkfn lfEefyr gksrs gSA ç;ksT; vk; dks ç;ksT; personal taxes may include the income tax, personal O;fDrxr vk; ds #i eas Hkh tkuk tkrk gSA dksbZ O;fDr property taxes, etc. The residual income is termed as O;fDrxr vk; ds bl Hkkx dk mi;ksx ;k rks miHkksx ds Disposable income, also known as disposable fy, dj ldrk gS ;k fQj cpr ds fy, tks og pkgrk gS personal income (DPI). An individual can utilise this mlh :i eas dj ldrk gSA portion of personal income either for consumption or savings as what he like to do so.  Disposable Income = Personal Income – Personal Taxes 1.6.7.10. 1.6.7.10. Purchasing Power Parity Ø;&’kfDr lerk ,d ,slh fof/k gS ftlds ek/;e ls nks fofHkUu eqnzkvksa ds vkHkklh ewY; dh igpku dh tk ldrh gAS Purchasing power parity (PPP) is a method through ;g rjhdk nks fofHkUu ns’kksa dh eqnzkvksa ds ek/;e ls Ø; which one can identify the virtual value of two ;ksX; eky dh okLrfod ek=k tkuus ds fy, O;kid #i ls different currencies. This method is widely utilised for ç;qDr gksrk gSA oLrqvksa dh ek¡x ,oa vkiwfrZ ds dkj.k eqnzkvksa knowing the actual quantity of goods that can be ds eYw ; eas dkQh mrkj&p<+ko gks jgk gS rFkk vusd vU; purchased through currencies of two different ?kVd Hkh gS ftudks Kkr djuk vklku ugha gksrkA bl çdkj countries. There is considerable fluctuation in the eqnzkvksa esa ifjorZu dks Ø;&’kfDr lerk ds ek/;e ls gVk;k value of currencies due to demand and supply of tk ldrk gS] D;kfsa d ;g ,d fo’ks\"k en dk eYw ; ekirk gS goods, and a number of other factors that may not be rkfd nks fHkUu&fHkUu eqnzkvksa dks çnf’kZr djus ds fy, leku easy to ascertain. Thus, such variation in currencies eYw ; fd;k tk ldsA can be avoided through PPP as it measures the price of a particular item so that the same price is taken for eqnzkvksa dh lkis{k Ø; 'kfDr dh rqyuk eqnzkLQhfr dh njksa eas expressing the two different currencies. vUrj dks /;ku eas j[krs gq, fofHkUu n’s kksa ds e/; leku çdkj ds oLrqvksa vkSj lsokvksa ds fofue; ds fo#) dh tkrh The relative purchasing power of currencies is gSA ;g fofHkUu ns’kksa ds yksxksa ds thou&Lrj dks mi;qDr #i calculated against the same types of goods and services ls fHkUu djrk gS D;ksfa d ,d n’s k eas mRikfnr oLrqvksa vkSj exchange between the different nations irrespective of lsokvksa ds eYw ; nlw js n’s k dh rqyuk esa vf/kd gAS blfy,] the difference in inflation rates. It correctly Ø;&’kfDr lerk fofue; dh nj ds fu/kkZj.k dk fl)kUr gS differentiates the living standard of people across the ftlds vk/kkj ij nks fHkUu&fHkUu eqnzkvksa dk ,d gh fgr ds different countries as the goods and services produced fy, vknku&çnku fd;k tkrk gS ;k eqnzkvksa ds ikl nks in one country are more expensive than the other. fHkUu&fHkUu n’s kksa ds e/; oLrqvksa vkSj lsokvksa dk fofue; Therefore, PPP is a theory to ascertain the rate of djus ds fy, leku Ø;&’kfDr gksrh gSA exchange, on the basis of which two different currencies are exchanged for same good or the n's k&okj vk; dh tkudkjh vklkuh ls Ø;&’kfDr lerk ds currencies have the same purchasing power to exchange ek/;e ls fofHkUu n’s kksa eas leku vk; dh tkudkjh esa cny goods and services between the two different countries. ldrh gSA ljdkjh futh Hkkxhnkjh ds ek/;e ls jk\"Vªh; vk; lwpuk dk l`tu djuk vklku gks tkrk gSA pw¡fd ;g fofHkUu Measuring PPP n’s kksa dh mu dherksa ij fuHkZj djrk gS ftu dherksa ij The country-wise income information can easily transform muds e/; oLrqvksa vkSj lsokvksa dk vknku&çnku gksrk FkkA into similar income information across the different nations igys ;g dfBu Fkk D;kfsa d fofHkUu n’s kksa ds vklikl oLrqvksa through purchasing power parity. Through PPP, the creation vkSj lsokvksa ds eYw ; vf/kd vfuf’pr Fks vkSj fHkUu&fHkUu of national income information become easy as it is depends gksrs Fks blfy, çR;sd n’s k dh vk; dh tkudkjh dh rqyuk upon the similar information of the different countries about tfVy FkhA bl leL;k ls cpus ds fy, fo’o caSd us Ø; the prices at which the goods and services were exchange 'kfDr lerk vk; lwpuk eas çR;sd n’s k dh vk; lwpuk ds between them. Previously, it was difficult because the prices :ikarj.k dh ,d fof/k vkjEHk dh gSA of goods and services was highly uncertain around the different countries and subjected to vary thus the comparison * of income information of each country was complex. In order to avoid this issue, the World Bank has introduced a method for transforming the income information of each country into the PPP income information. *

lef\"V vFkZ'kkL= dk ifjp; 55 On evaluating the PPP of each currency, the value of currency can be expressed in U.S. dollar in the following way: PPP of Indian Rupee = Number of Indian rupees required to purchase a representative basket of goods and services in India that one U.S. dollar will buy in the United States. Accordingly, PPP Income of India   Measured Income    Official Rupee – Dollar Rate  of India PPP of Indian Rupee çR;sd enq zk dk Ø;&’kfDr lerk dk ewY;kadu djus ij] eqnzk dk ewY; fuEu çdkj ls vesfjdh MkWyj esa O;Dr fd;k tk ldrk g&S Hkkjrh; #i;s dh Ø;&’kfDr lerk ¾ Hkkjr eas oLrqvksa vkSj lsokvksa dh çfrfuf/k lewg Ø; djus ds fy, vko’;d Hkkjrh; #i;ksa dh la[;k] tks fd ,d vefs jdh MkWyj la;qDr jkT; vefs jdk eas Ø; djxs kA rn~uqlkj Hkkjrh; Ø;&’kfDr lerk vk; ¾ Hkkjrh; ekfir vk;   vkf/kdkfjd # i,&MkyW j nj  Hkkjrh; # i, dh Ø;&' kfDr lerk 1.6.7.11. Growth Rate 1.6.7.11. vkfFkZd lao`f) nj fdlh jk\"Vª ds mRiknu Lrj eas okLrfod Economic growth rate measures the actual increase in the o`f) dks crkrh gSA vFkZO;oLFkk eas lexz of` ) rc n[s kh tkrh level of output of a nation. The overall growth in economy gS tc lalk/kuksa dh xq.koÙkk eas o`f) ¼LokLFk n[s kHkky] ;k is observed when there is increase in the quality of f’k{kk lqfo/kkvksa ds ek/;e ls½] lalk/kuksa dh ek=k esa o`f) vkSj resources (through health care or education facilities), çkS|ksfxdh;ksa dh çxfr ;k lkekU; vof/k esa fufeZr oLrqvksa increase in the quantity of resources and advancement of vkSj lsokvksa ds eYw ; eas o`f) gksrh gSA bls fdlh ns’k dh th- technologies or in simple term an increase in the value of Mh-ih- ds ek/;e ls ekik tkrk gSA goods and services manufactured by every sector of an economy. It is measured through GDP of a country. ldy ?kjys w mRikn dsoy ,d o\"kZ ls o\"kZ eas gksus okys vkfFkZd lq/kkj dk çfrfuf/kRo djus ds fy, i;kIZ r l{ke ugha GDP itself is not efficient enough to represent the gSA blfy, okf\"kZd o`f) nj dh x.kuk Áfr o\"kZ ldy ?kjys w economic improvement that occurs during a year to mRikn ds eYw ; eas ifjorZu ds çfr’kr dks çnf’kZr djus ds year. So, annual growth rate is calculated to represent fy, dh tkrh gSA lk/kkj.kr% ;g vFkZO;oLFkk eas ,d fo’ks\"k the percentage of change in the value of GDP from a vof/k ds nkSjku mRikfnr oLrqvksa vkSj lsokvksa dh ek=k esa year to year. Simply, it represents the increase in o`f) dk |ksrd gSA ijEijkxr #i ls bls okLrfod ldy quantity of goods and services produced during a ?kjys w mRikn esa o`f) ds çfr’kr ds #i eas ifjdfyr fd;k particular period in an economy. Traditionally, it was x;kA ijUrq vc bldh x.kuk eqnzkLQhfr ls lEcfU/kr lHkh calculated as the as the percentage of increase in real lek;kstuksa ds ckn dh xbZ gS] gkyk¡fd ,sls lek;kstu fd, gross domestic product. But now, it is calculated in real tkrs gSa rkfd fofufeZr oLrvq ksa vkSj lsokvksa ds eYw ;ksa ij term after making all adjustments related to inflation as eqnzkLQhfr ds çHkko ls cpk tk ldsA n’s k ds mRikn ds Lrj such adjustment is made to avoid the impact of inflation dk irk yxkus ds çeq[k lwpdkad ldy ?kjsyw mRikn vkSj on the price of manufactured goods and services. The ldy jk\"Vªh; mRikn gS] bu ladsrdks dk mi;ksx fodkl nj prime indicators to find out the level of output of a dh x.kuk djus eas fd;k tkrk gSA nation are Gross Domestic Product (GDP) and Gross National Product (GNP), these indicators are used in calculating the growth rate. Measuring GDP Growth Rate ldy ?kjsyw mRikn esa gksus okys ifjoruZ ksa ds çfr’kr dh x.kuk In order to calculate the percentage of changes in GDP, an individual must know about the value of income at two ds fy, ,d O;fDr dks nks fHkUu&fHkUUk frfFk;ksa ij vk; ds ewY; different dates. Let assume, the value of GDP for previous year would be YL and the present year GDP would be YC. ds ckjs esa Kkr gksuk pkfg,A eku yhft,] xr o\"kZ dh th-Mh-ih- The growth rate would be calculated as: dk ewY; yL Fkk vkjS pkyw o\"kZ dh th-Mh-ih- dk ewY; yC gksxkA fodkl nj dh x.kuk fuEukulq kj dh tk,xh&  YC  YL   YC  YL   YL  100%  YL  100%     The above formula is based on the common concept of mi;qZDr lw= xf.kr dh lkekU; vo/kkj.kk ij vk/kkfjr gS] tks mathematics, used for calculating the percentage. A positive growth rate represents the expanding economy and this çfr’kr dh x.kuk gsrq ç;ksx fd;k tkrk gAS ,d ldkjkRed phase is refers to a boom period. Besides a negative growth rate represents the contracting economy and this phase is o`f) nj foLrkfjr vFkZO;oLFkk dk çfrfuf/kRo djrh gS vkSj refers to a recession period. bl pj.k dks ,d ds lanHkZ esa lanfHkrZ fd;k tkrk gSA blds vfrfjDr ,d udkjkRed o`f) vucq a/kkRed vFkOZ ;oLFkk dk çfrfuf/kRo djrh gS vkjS bl pj.k esa dk mYys[k gksrk gSA * *

56 lef\"V vFkZ'kkL= Measuring GNP Growth Rate ldy jk\"Vªh; mRikn fons’kksa ls ldy ?kjsyw mRikn esa 'k)q The gross national product is derived on adding the net factor dkjd vk; dks tksM+us ij ÁkIr gksrk gAS fons’kh 'kq) ?kVd incomes from abroad to the gross domestic product. NFIA is vk;] fons’kksa esa vftZr vk; vkSj fons’kksa dks Hkqxrku dh xbZ the difference of income earned from the abroad and income vk; dk vUrj gSA ldy jk\"Vªh; mRikn ds fy, lw= gksxk& made to the abroad. The formula for GNP would be + GNP = GDP + NFIA tgk¡] Where, th-Mh-ih- ¾ ldy ?kjsyw mRikn GDP = Gross Domestic Product ,u-,Q-vkbZ-,- ¾ fon’s kh 'kq) ?kVd vk; dks fdlh ns’k NFIA = Net factor income from abroad is taken as the ds fuokfl;ksa }kjk fons’kksa lsa vftZr vk; vkSj ml n’s k difference of income earned in foreign countries by eas vfuokfl;ksa }kjk vftZr vk; ds vUrj ds #i esa residents of a country and income earned by non- fy;k tkrk gAS residents in that country. th-,u-ih- jk\"Vªh; lhek ds vUnj vkSj ckgj oLrqvksa vkjS GNP is useful to ascertain the efforts made by the resident lsokvksa ds vknku&çnku ds fy, ,d jk\"Vª ds fuoklh }kjk of a nation toward the exchange of goods and services in fd, x, ç;klksa dk irk yxkus ds fy, mi;ksxh gSA bl and out of a national boundary. Thus, it is a prime çdkj ;g jk\"Vªh; vk; ys[kkadu dk ,d çeq[k ?kVd gSA component of national income accounting. 1.6.8. 1.6.8. Summary of Various Components of National Income fuEufyf[kr dFku xf.krh; #i ls mi;Dq r ppkZ fd, x, fofHkUUk ?kVdksa vkjS muds e/; lEcU/kksa dks js[kkafdr djrs gSa& The following statements mathematically outline the various components discussed above and the relationship cktkj ewY; ij th-,u-ih- ewY;gzkl ¾ cktkj eYw ; ij among them: ,u-,u-ih- cktkj eYw ; ij th-,u-ih- & fon’s kh 'kq) ?kVd vk; ¾ GNP at market price – Depreciation = NNP at market cktkj eYw ; ij th-Mh-ih- price cktkj eYw ; ij th-,u-ih- & 'kq) vçR;{k dj ¾ ?kVd GNP at market price – Net factor income from abroad ykxr ij th-,u-ih- = GDP at market price cktkj eYw ; ij ,u-,u-ih- & 'kq) fon’s kh vk; ¾ cktkj GNP at market price – Net indirect taxes = GNP at eYw ; ij ,u-Mh-ih- factor cost cktkj eYw ; ij ,u-,u-ih- & 'kq) vçR;{k dj ¾ ?kVd NNP at market price – Net income from abroad = ykxr ij ,u-,u-ih- NDP at market price cktkj ewY; ij th-Mh-ih- & 'kq) vçR;{k ¾ ?kVd NNP at market price – Net indirect taxes = NNP at ykxr ij th-Mh-ih- factor cost ?kVd ykxr ij th-,u-ih- & eYw ;gzkl ¾ ?kVd ykxr GDP at market price – Net indirect taxes = GDP at ij ,u-,u-ih- factor cost Cktkj ewY; ij ,u-Mh-ih- & 'kq) vçR;{k ¾ ?kVd GNP at factor cost – Depreciation = NNP at factor ykxr ij ,u-Mh-ih- cost ?kVd ykxr ij th-Mh-ih- & eYw ;gzkl ¾ ?kVd ykxr NDP at market price – Net indirect taxes = NDP at ij ,u-Mh-ih- factor cost GDP at factor cost – Depreciation = NDP at factor Lkjyrk ls] lw=ksa dks tkuus ds fy, fuEufyf[kr #ikarj.kksa cost dk mi;ksx fd;k tk ldrk g&S 1) jk\"Vªh; mRikn dh x.kuk djus ds fy, ge fon’s kh vk; For ease, to learn the formulae the following conversions can be used: dks ?kjys w vk; esa tksM+ ldrs gSaA bl çdkj ?kjys w mRikn 1) To calculate the national product, we can add income dh x.kUkk djus ds fy,] ge jk\"Vªh; mRikn ls fon’s kh vk; ?kVk ldrs gS] vFkkZr~ from abroad to the domestic product; likewise to calculate the domestic product, we can deduct the + income from abroad from the National Product, i.e., National Product = Domestic Product + Net factor cktkj eYw ; ij th-,u-ih- & fons’kh 'kq) ?kVd income from abroad vk; ¾ cktkj ewY; ij th-Mh-ih- cktkj ewY; ij ,u-,u-ih- & fons’kh 'kq) ?kVd Domestic Product = National Product  Net factor vk; ¾ cktkj ewY; ij ,u-Mh-ih- income from abroad * Example: GNP at Market Price – NFIA = GDP at market price NNP at Market Price – NFIA = NDP at market price *

lef\"V vFkZ'kkL= dk ifjp; 57 2) By adding depreciation to the net income, we get the 2) 'kq) vk; esa eYw ;gzkl tksM+dj] ges ldy vk; çkIr gross income; likewise, by subtracting depreciation gksrh gS] blh çdkj] ldy vk; ls eYw ; gzkl ?kVkdj] from gross income, we get the net income, i.e., geas 'kq) vk; çkIr gksrh gS] vFkkZr~ Net Income = Gross Income – Depreciation + Gross Income = Net Income + Depreciation cktkj eYw ; ij th-,u-ih- & eYw ;gkz l ¾ cktkj eYw ; ij Example: ,u-,u-ih- GNP at Market Price – Depreciation= NNP at Market ?kVd ykxr ij th-,u-ih- & eYw ;gzkl ¾ ?kVd ykxr Price ij ,u-,u-ih- GNP at Factor Cost – Depreciation = NNP at Factor 3) ?kVd ykxr dh x.kuk cktkj ewY; esa vçR;{k djksa Cost dks ?kVkdj dh tkrh gS vkSj cktkj ewY; dh x.kuk ?kVd ykxr esa vçR;{k dj dks tksM+dj dh tkrh gS& 3) Factor cost can be calculated by deducting indirect taxes from market price and market price can be calculated by adding indirect taxes to factor cost: Factor Cost = Market Price – Net indirect Taxes Market Price = Factor cost + Net indirect Taxes Where, Net Indirect Taxes = Indirect Taxes – Subsidies Example: cktkj eYw ; ij ,u-,u-ih- & 'kq) vçR;{k dj ¾ ?kVd NNP at Market Price – Net Indirect Taxes = NNP at ykxr ij ,u-,u-ih- cktkj ewY; ij th-Mh-ih- & 'kq) vçR;{k dj ¾ ?kVd Factor Cost Ykkxr ij th-Mh-ih- GDP at Market Price – Net Indirect Taxes = GDP at Factor Cost National Income Concepts Summarised GNP GNP NNP NI PI DI Expenditure Income Approach National Product National Income Personal Income Disposable Approach Income Wages ¼etnwjh½ Wages ¼etnwjh½ Wages ¼etnwjh½ Wages ¼etnwjh½ Rent ¼fdjk;k½ Rent ¼fdjk;k½ Rent ¼fdjk;k½ Personal Rent ¼fdjk;k½ Interest ¼C;kt½ Interest ¼C;kt½ Interest ¼C;kt½ Consumption Dividends ¼ykHkka’k½ Dividends ¼ykHkka’k½ Dividends ¼ykHkka’k½ Consumption Interest ¼C;kt½ ¼miHkksx½ Expenditure Income of the Income of the Income of the Dividends ¼ykHkka’k½ unincorporated incorporated unincorporated Savings ¼cpr½ ¼O;fDrxr miHkksx business ¼vfuxfer business ¼vfuxfer business ¼vfuxfer Personal Taxes O;;½ O;olk; dh vk;½ O;olk; dh vk;½ O;olk; dh vk;½ Subsidies ¼lfClMh½ ¼O;fDrxr dj½ Government Income of the Corporate Income Corporate Income Transfer Payments Purchases unincorporated Taxes ¼fuxeh; Taxes ¼fuxeh; vk;dj½ vk;dj½ ¼gLrkarj.k Hkqxrku½ ¼Lkjdkjh Ø;½ business ¼vfuxfer O;olk; dh vk;½ Social Security Social Security contributions contributions Corporate Income ¼lkekftd lqj{kk ¼lkekftd lqj{kk Taxes ¼fuxeh; ;ksxnku½ ;ksxnku½ vk;dj½ Undistributed Undistributed Social Security Corporate Profits Corporate Profits contributions ¼vforfjr fuxeh; ¼vforfjr fuxeh; ykHk½ ykHk½ ¼lkekftd lqj{kk ;ksxnku½ Indirect Business Subsidies ¼lfClMh½ Undistributed Taxes ¼vçR;{k O;olk; dj½ Gross Private Corporate Profits Domestic ¼vforfjr fuxeh; Investment ¼ldy ykHk½ futh ?kjsyw fuos’k½ Indirect Business Taxes ¼vçR;{k O;olk; dj½ Net Foreign Depreciation Investment ¼'kq) ¼eYw ;gzkl½ fon’s kh fuos’k½ * *

58 lef\"V vFkZ'kkL= 1.6.9. Methods of Measurement of 1.6.9. jk\"Vªh; vk; dks fuEu rhu rjhdksa ls ekik tk ldrk gS& National Income National income can be measured through the following three methods: Methods of Measurement of National Income Output or Production Method Income Method ¼vkmViVq ;k mRiknu fof/k½ ¼vk; fof/k½ Expenditure Method ¼O;; fof/k½ 1.6.9.1. Output or Production Method 1.6.9.1. mRiknu fof/k ewY; of/kZr fof/k dks lanfHkZr djrh gSA bl The output or production method is also refers to value fof/k ds vUrxZr] jk\"Vªh; vk; vFkZO;oLFkk esa dqy mRiknu added method. Under this method, national income is ds ek/;e ls fu/kkZfjr dh tkrh gSA mRiknu fof/k ds determined through the total output produce in the economy. ek/;e ls jk\"Vªh; vk; dh x.kuk djus ds fy,] In order to calculate the national income through output or vFkZO;oLFkk dks fofHkUUk {ks=ksa esa oxhZd`r djus dh production method, one needs to classify the economy into vko’;drk gksrh gS] ftuesa d`f\"k] [kuu] fofuekZ.k] y?kq various sectors that comprised of as agriculture, mining, m|e] okf.kt;] ifjogu] lapkj vkSj vU; lsok,¡ lfEefyr manufacturing, small enterprises, commerce, transport, gSaA o\"kZ ds nkSjku bu {ks=ksa ls mRiknu dk 'kq) ewY; c<+kus communication and other services. On adding the net value ls ldy jk\"Vªh; mRikn çkIr fd;k tk ldrk gSA of production effected from these sectors during a year, one can derive the gross national product. fdlh fo’ks\"k m|ksx ds mRiknu dk 'kq) ewY; bl m|ksx ds mRikndksa ds Ø; ls ?kVkdj ifjdfyr fd;k tkrk gS vkSj The net value of production of a particular industry is vU; m|ksxksa ;k {ks=ksa ds mRikndksa ls ml m|ksx ds mRiknu calculated by subtracting the purchases of the producers ds ldy ewY; ls ?kVk fy;k tkrk gSA of this industry and from the producers of other industries or sectors is deducted from the gross value of rc çkIr dj ldrs gSa tc lHkh m|ksxksa ds mRiknu production of that industry. We can derive Gross dk 'kq) ewY; fons’kh 'kq) vk; eas tksM+ fn;k tk,A vUr esa National Product, when the net value of production of jk\"Vªh; vk; dh x.kuk th-,u-ih- ls eYw ;gzkl dh jkf’k all the industries is added to the net income from abroad. ?kVkdj dh tkrh gSA Finally, national income is calculated by deducting the depreciation amount from GNP. th-,u-ih- ¾ dqy oLrqvksa vkSj lsokvksa dk ekSfnzd ewY; + fon’s kksa ls vftZr 'kq) ?kVd vk; GNP = Money value of total good and services + jk\"Vªh; vk; ¾ th-,u-ih- & ewY;gzkl Net factor income received from abroad ;g fof/k jk\"Vªh; vk; ds lzksrksa dk eYw ;kadu djus ds fy, NI = GNP – Depreciation mi;qDr gS tks vFkZO;oLFkk ds fofHkUu {ks=ksa ls ,d= fd, tkrs gSaA This method is suitable for evaluating the sources of national income which are collected from the different sectors of the economy. Precautions mRiknu fof/k }kjk jk\"Vªh; vk; dks ekius ds nkSjku The following precaution must be taken while measuring the national income through output method: fuEufyf[kr lko/kkfu;k¡ j[kuha pkfg,& 1) Problem of Double Counting: The intermediate 1) jk\"Vªh; vk; fu/kkZfjr djrs goods must be completely ignored while determining le; e/;orhZ oLrqvksa dh iw.kZr;k vuns[kh dh tkuh the national income. Exclusively, the final goods are taken into account. As such consideration is important pkfg,A dsoy vafre oLrqvksa dks gh x.kuk eas fd;k tkrk for avoiding the cause of double counting. For example, on manufacturing a chair, the value of wood gSA nksgjh x.kuk dh leL;k ls cpus ds fy, bl çdkj would automatically consider when value of chair is determined. The value of wood is not included in ds fopkj egÙoiw.kZ gSaA ,d dqlhZ national income because wood was intermediary product thus only the value of chair (the final product) ds fuekZ.k ij] tc dqlhZ dk eYw ; fu/kkZfjr fd;k tkrk is consider in national income. gS] ydM+h ds eYw ; ij Lor% gh fopkj fd;k tkrk gSA * ydM+h dk ewY; jk\"Vªh; vk; eas 'kkfey ugha gS] D;kfsa d ydM+h e/;orhZ mRikn gS blfy, dsoy dqlhZ ¼vfUre mRikn½ dk ewY; jk\"Vªh; vk; eas ekuk tkrk gSA *

lef\"V vFkZ'kkL= dk ifjp; 59 2) Value Addition in Particular Year: The fresh 2) fn, x, foÙkh; o\"kZ eas çkIr acquired capital assets in the given financial year must dh xbZ 'kq) iw¡thxr lEifÙk;ksa ij jk\"Vªh; vk; eas fopkj be considered in national income because such assets fd;k tkuk pkfg, D;kfsa d ,slh lEifÙk;k¡ foØ; ;ksX; are saleable commodities if they were not further used oLrq,¡ gksrh gSa] ;fn mudk mRiknu ds fy, mi;ksx ugha for production purpose. fd;k x;k gksA 3) Stock Appreciation: It is not required to consider the 3) vfUre mRikn dk fu/kkZj.k djrs value of stock appreciation while determining the le; LdU/k o`f) ds eYw ; ij fopkj djus dh final product because it is not impacting the total vko’;drk ugha gS] D;ksfa d ;g mRikn dh dqYk ek=k dks volume of output. çHkkfor ugha djrk gSA 4) Production for Self-Consumption: It is required to 4) oLrqvksa ds ,sls eYw ; ij consider the value of goods which were manufactured fopkj djuk vko’;d gS tks Lo;a ds miHkksx ds fy, for self-consumption and it must be taken at current rS;kj fd, x, Fks vkSj bls orZeku cktkj eYw ; ij fy;k market price. tkuk pkfg,A 5) Depreciation: The depreciation amount or 5) ewY;gzkl jkf’k ;k çfrLFkkiu ykxr ;k LFkk;h replacement cost or consumption of fixed cost must ykxr ds miHkksx dks bl fof/k eas fopkj ugha djuk not consider in this method. pkfg,A 1.6.9.2. Income Method 1.6.9.2. tSlk fd fof/k dk uke gS] jk\"Vªh; vk; dk fu/kkZj.k mRiknu ds As the name of the method imply, national income is ?kVdksa dks nh xbZ vk; ds vk/kkj ij fd;k tkrk gSA bl fof/k determined on the basis of income paid to the factors of ds vUrxZ r fdlh jk\"Vª ds O;fDr;ksa }kjk vftZr ;k ÁkIr dh xbZ production. Under this method, the income earned or received vk; dks ,d= fd;k tkrk gSA lk/kkj.kr% jk\"Vªh; vk; ÁkIr by the individuals of a nation is aggregated. Simply, the djus ds fy, O;fDr;ksa dh vk; tksM+h tkrh gSA ÁR;sd O;fDr income of individuals is added to derive the national income. pkgs og ns’k ds vUnj ;k ckgj viuh lsok,¡ ns jgk gks ;k Hkwfe] Every individual whether inside or outside a country is itw¡ h] Je vkjS m|ferk ds :i esa mRiknu ds mnn~ s’; ds fy, rendering their services or rendering their property for viuh lEifÙk Ánku dj jgk gksA blds cnys esa mUgsa Hkwfe dk production purpose in form of land, capital, labour and fdjk;k] etnwjh vkSj Je dh lsok ds fy, osru] iwt¡ h ij C;kt entrepreneurship. In return, they receive income as rent on vkjS lkglh ds fy, ykHk ¼Áfr/kkfjr ykHk Hkh ykHk esa lfEefyr land, wages and salaries for the service of labour, interest on g½S ds :i esa vk; ÁkIr gksrh gSA bu lHkh vk; dks Lofu;ksftr capital and profits on entrepreneurship(retained profit is also O;fDr;ksa }kjk vftrZ ykHk ls tksM+dj] ge fdlh ns’k dh jk\"Vªh; included in the profit). By adding all these income together vk; dk ifjdyu dj ldrs gSaA with the income earned by the self-employed people, we can calculate the national income of a country. = + ++ NI = Rent + Wage + Interest + Profit + Net Factor nh xbZ fof/k e]sa tc vUrj.k vk; dh iw.kZr;k vuns[kh dj Income from Abroad fn;k tkrk gS rc mRiknu ds ÁkFkfed ?kVdksa eas forfjr vk; ij fopkj fd;k tkrk gSA blesa dsoy Jfedksa dh etnwjh In given method, exclusively the incomes distributed to lfEefyr gS] ijUrq lkFk gh og lsokfuo`Ùk Jfedksa dks nh primary factors of production are considered while the tkus okyh i’sa ku ij fopkj ugha djrk gSA blfy,] jk\"Vªh; transfer incomes are completely ignored. Simply, it vk; dh x.kuk fofHkUu vk; legw ksa tSls tehankjks]a iw¡thifr;ks]a includes the wages of labourers but at the same time it Jfedksa vkfn eas jk\"Vªh; vk; ds forj.k ds fu/kkZj.k ds fy, does not consider the pension paid to the retired workers. mi;ksxh gSA blfy, bl fof/k dks forj.kkRed va’kkas }kjk Therefore, the estimation of national income is useful to jk\"Vªh; vk; ds :i eas Hkh tkuk tkrk gSA determine the distribution of national income among different income groups such as landlords, capitalists, ldy jk\"Vªh; mRikn ds ?kVd fuEufyf[kr gaS& workers, etc. hence, this method is also known as national 1) blesa Jfedksa vkSj m|fe;ksa }kjk income by distributive shares. viuh vkfFkZd xfrfof/k;ksa ds ek/;e ls ÁkIr dqy Components of GNP etnwjh vkSj osru lfEefyr Fks tks Á—fr esa The following are the component of GNP: mRiknudkjh FksA bl Ádkj] ;g vf/kle;] deh’ku] 1) Wages and Salaries: It comprised of the total wages Hkfo\"; fuf/k] chek vkfn ds :i eas ÁkIr vkSj tek fd, x, lHkh ;ksxnkuksa dk dqy ;ksx gSA and salaries received by the workers and entrepreneurs through their economic activities 2) blesa Hkwfe] nqdku] edku] dkj[kkus vkfn ij which were productive in nature. Thus, it is a sum ÁkIr dqy fdjk;k lfEefyr FkkA ekfyd Lo;a ,slh total of all contribution received and deposited in lEifÙk;ksa ij ÁkIr fdjk;k fu/kkZfjr djrs gSaA form of overtime, commission, provident fund, insurance, etc. * 2) Rent: It comprised of the total rent received on land, shop, house, factory, etc. The owners themselves determine the rent received on such assets. *

60 lef\"V vFkZ'kkL= 3) Interest: It includes the total interest received by 3) blesa jk\"Vª ds O;fDr;ksa }kjk ÁkIr dqy C;kt the individuals of a nation. The interest may be lfEefyr gSA C;kt fofHkUu fodYiksa ds ek/;e ls vftZr earned through various alternatives. But only the fd;k tk ldrk gSA ijUrq dsoy futh iw¡thxr lEifÙk;ksa interest received on private capital assets are ij ÁkIr C;kt ds fy, ik= gSa] ftleas m/kkj yh xbZ eligible to be include where as interest received by fuf/k ds iqufuZos’k ls ÁkIr C;kt ij fopkj ugha fd;k reinvesting the borrowed fund are not considered tkrk vkSj ljdkjh _.kksa ij ÁkIr C;kt ij Hkh /;ku and the interest received on governmental loans are ugha fn;k tkrk] D;ksfa d ,slk fuos’k dsoy vk; dk also ignored as such investment is a mere transfer gLrkUrj.k gAS of national income. 4) blesa dEifu;ksa ls va’k/kkjdksa }kjk ÁkIr dqy 4) Dividends: It includes the total dividend received by ykHkka’k lfEefyr gSA the shareholders from the companies. 5) bleas dEifu;ksa }kjk vius 5) Undistributed Corporate Profits: It includes the ikl Áfr/kkfjr dqy ykHk dks lfEefyr fd;k x;k gAS total profit which is retained by the companies. 6) blesa xSj&,dh—r O;olk;ksa] Lojkstxkj 6) Mixed Incomes: It comprised of total profit which is O;fDr;ksa vkSj Hkkxhnkfj;ksa ls ÁkIr dqy ykHk received from the non-integrated businesses, self- lfEefyr gSA employed persons and partnerships firms. 7) blesa os lHkh dj 'kkfey gaS tks ÁR;{kr% 7) Direct Taxes: It includes all those taxes which are O;fDr;ks]a fuxeksa vkSj vU; O;olk;ksa ij yxk, tkrs gSaA directly imposed on individuals, corporations and bleas vk;dj ;k /ku dj lfEefyr gks ldrs gSaA other businesses. It may comprise of income taxes or wealth taxes. 8) bleas os lHkh dj lfEefyr gaS tks vÁR;{k :i ls ljdkj }kjk yxk, tkrs gSa tSls fd mRikn 'kqYd 8) Indirect Taxes: It includes all those taxes which are vkSj foØ; djA ,sls dj ml oLrq ds eYw ; ij yxk, indirectly imposed by the government such as excise tkrs gSa tks mRiknu ds ?kVdksa dh vis{kk ljdkj ds duties and sales tax. Such taxes are levied on the price jktLo esa vÁR;{k :i ls tkrk gSA of the goods which indirectly goes to the treasury of the government instead to the factors of production. 9) fuxeksa ds ikl gksus okyh iw¡th lEifÙk;k¡ mRiknu ÁfØ;k ds nkSjku lkekU;r% VVw &QwV tkrh gSaA 9) Depreciation: The capital assets possessed by the ogk¡ dh dk;Zi)fr ,d fo’ks\"k le; vof/k eas ÁHkkfor corporations are subject to normal wear and tear gksxh vkSj mlds LFkku ij u, miLdjksa ¼QuhZpj½ dh during the production process. There functioning will vko’;drk gksxhA blfy,] vk; dk ,d Hkkx ewY;gzkl get affected over a particular time period and needs to ds :i eas j[kk tkrk gSA bl Ádkj] bls th-,u-ih- esa be replaced with new equipment. Hence, a portion of lfEefyr fd;k tkuk pkfg,A the income is kept as depreciation. Thus, it must be included in GNP. 10) blesa 'k)q vk; dk ldkjkRed vkSj udkjkRed 'ks\"k oLrqvksa dk fu;krZ ,oa 10) Net Factor Income earned from Abroad: It include vk;kr lfEefyr gSA ;g 'kq) vk; oLrvq ksa vkSj lsokvksa ds the positive and negative balance of net income fu;kZr ds ewY; ls oLrvq ksa vkjS lsokvksa ds ewY; dks received form exports and imports of goods and ?kVkdj ÁkIr dh tkrh gSA tc 'kq) 'ks\"k ldkjkRed gksrk services. This net income is derived by subtracting the gS] rks th,uih ldkjkRed lUryq u ls c<+rk gS tcfd value of imports of goods and services from the value nwljh udkjkRed lUrqyu th-,u-ih- dks de dj nsxkA of exports of goods and services. When net balance is positive, GNP will increase by positive balance while blfy,] th-,u-ih- dh fuEufyf[kr fof/k ls x.kuk dh tkrh g&S on other hand negative balance reduce the GNP. = + ++ Therefore, GNP is calculated in the following way: + ++ GNP = Wages and Salaries + Rents + Interest + + ++ Dividends + Undistributed Corporate Profits + Mixed Incomes + Direct Taxes + Indirect Taxes + th-,u-ih- dh x.kuk djrs le; fuEufyf[kr lko/kkfu;ksa ij Depreciation + Net Factor Income from Abroad. fopkj djuk pkfg,& 1) blesa dsoy O;fDr;ksa rFkk laxBuksa dh 'kq) vk; lfEefyr Precautions While calculating the GNP considers the following gksrh gSA ldy vk; esa lHkh vk; 'kkfey gksrh gSa vr% precautions: blesa O;fDr;ksa rFkk laxBuksa dh vk; ds vfrfjDr vftZr 1) It includes only the net income of individuals and vk; Hkh 'kkfey] gksrh gAS blfy, tc ldy vk; yh tkrh gS rks nksgjs x.kuk dh leL;k mRiUu gks ldrh gSA organisations. The gross income is comprised of all income thus also include the incomes earned other * than the income of individuals and organisations. Therefore, the problem of double counting may happen when the gross incomes are taken. *

lef\"V vFk'Z kkL= dk ifjp; 61 2) The transfer payments must be excluded from the 2) vUrj.k Hkqxrkuksa dks jk\"Vªh; vk; eas ls fudky fn;k national income because such incomes do not tkuk pkfg, D;ksfa d ,slh vk; fdlh jk\"Vª ds dqy makes any addition to the total output of a nation. mRiknu esa egÙoiw.kZ Hkwfedk ugha fuHkkrk gSA tc dkbs Z When a person sells his property, the selling price O;fDr viuh lEifÙk csprk gS rks foØ; ewY; dks vk; is not taken as income but it is a transfer payment. ds :i eas ugha fy;k tkrk yfs du ;g vUrj.k Hkqxrku In similar way, the money received by a beggar, or gksrk gSA blh Ádkj fdlh fHk[kkjh }kjk ÁkIr /ku ;k relief payments made to an individual in form of o`)koLFkk is’a ku ds :i eas fdlh O;fDr dks fn, x, old-age pensions are not considered in national jkgr&Hkqxrku dks jk\"Vªh; vk; eas ugha ekuk tkrk D;kfsa d income as such payment are made for non ,sls Hkqxrku vuRq iknd dk;ksZa ds fy, fd, tkrs gSaA productive activities. 3) jk\"Vªh; vk;] fo’ks\"k :i ls mu vk;ksa dks feykdj tks 3) National income, exclusively consisting of those mRiknu ds dkjdksa }kjk mRiknu ds fy, viuh lsokvksa incomes which were received by the factors of ds cnys ÁkIr gbq Z FkhA D;ksfa d mudk ;ksxnku fdlh production in exchange of their services for production. jk\"Vª dh mRikndrk ls lEcfU/kr gSA Because their contributions are related to the productivities of a nation. 4) dkjdksa ij fd, x, Hkqxrku cktkj eYw ; ;k lEifÙk ;k iw¡thxr /ku ds mi;ksx ds vk/kkj ij fo’ks\"k oLrqvksa dh 4) 'The payments made to the factors must be specified mRiknu ykxr ij vk/kkfjr gksus pkfg,A based on the market price or the utilisation of property or capital good must be based on the production cost 5) xjS &vkfFkdZ fØ;kvksa dks fd;k tkus okyk Hkqxrku Hkh xg` of particular commodities. Lokfeuh dh lsok ;k futh m|ku ls mRiUu gksus okys mRikn ds :i esa x.kuk dh tkuh pkfg,] D;kfsa d ;g foØ; 5) The payment made to non-economic activities must ds fy, ÁLrko ugha gSA O;kogkfjd :i ls ,slh oLrqvksa dh also be calculated like the service of house wife or the x.kuk djus dh vko’;drk gS] ijUrq xjS &vkfFkZd fØ;kvksa produce from the personal garden as it is not offer for dks ekius dk dksbZ fo’ks\"k rjhdk ugha gSA sale etc. Practically, such items needs to be calculated but there is no specific method to measure the non- 6) ykHk dk ,d fuf’pr Hkkx O;kikj eas vkdfLed economic activities vko’;drkvksa dks iwjk djus ds fy, dk\"s k ds :i eas j[kk tkrk gS vkSj ;g Áfr/kkfjr /ku va’k/kkjdksa dks ykHkka’k ds 6) A certain part of the profit is kept in the business as :i eas forfjr ugha fd;k tkrk gSA pw¡fd ;g ,d o\"kZ ds reserve to meet the contingent requirements and this nkSjku vftZr vk; dk Hkkx gS rc bl ij jk\"Vªh; vk; retained money is not paid as dividend to the dh x.kuk esa 'kkfey fd;k tkuk pkfg,A shareholders. Because, it is a part of income earned during a year then it must be considered in the 1.6.9.3. calculation of national income. Ykkxr ¼O;;½ fof/k dk lUnHkZ dqy ifjO;; fof/k ls gSA bl fof/k 1.6.9.3. Expenditure Method ds vUrZxr jk\"Vªh; vk; dks o\"kZ dh vof/k ds fy, eky vkjS lsokvksa ds mRiknu esa fd, x, lHkh O;; dh jkf’k ds :i esa Expenditure method is also refers to total outlay method. ifjdfyr fd;k tkrk gSA O;fDr] laxBu ;k ljdkj viuh vk; Under this method, national income is calculated as the miHkksDrk oLrqvksa ;k fuos’k oLrqvksa ij O;; djrh gAS sum of all expenditure incurred in the production of goods and services for a period of a year. Individuals, blfy, jk\"Vªh; vk; dh x.kuk lHkh miHkksx O;; vkSj organisations or government are spending their income fuos’k O;; dh dqy jkf’k ds :i esa dh tkrh gS tks fdlh either on the consumer goods or on the investments goods. o\"kZ fo’ks\"k esa fdlh ns’k dh ljdkj vkSj O;fDr }kjk fd, tkrs gSaA Therefore, national income is calculated as the sum total of all consumption expenditure and investment expenditure =+ which are primarily incurred by the individuals and government of a nation in a particular year. th-,u-ih- dh x.kuk fuEufyf[kr ?kVdksa dks 'kkfey djds dh GNP = Individual expenditure + Government tkrh gS& expenditure 1) O;fDr;ksa }kjk oLrqvksa ,oa lsokvksa ds miHkksx eas viuh The GNP is calculated by including the following vk; dks O;; fd, x, O;; dks components: dgk tkrk gSA 1) The expenditure incurred by the individuals through 2) futh O;olk; }kjk uohure vkSj mUur iw¡thxr spending their income in consumption of goods and services, such expenditure is termed as personal lEifÙk;ksa eas fuos’k djus vFkok iqjkus midj.kksa ds consumption expenditure. ÁfrLFkkiu vkSj uohdj.k ds fy, O;; djuk iM+rk gSA 2) The incomes spend by the private business for making investment in fresh and advance capital assets or for ,sls fuos’k O;kid O;; djus ds i'pkr~ fd, tkrs gaS] replacement and renewal of outdated equipment. Such investments are made after incurring huge expenditure vr% bls dgk tkrk gSA thus it is termed as gross domestic private investment. * *

62 lef\"V vFkZ'kkL= 3) The incomes spend by the foreign countries in the 3) fdlh vFkZO;oLFkk dh oLrvq ksa vkSj lsokvksa dk mRiknu eas production of goods and services of an economy then fon’s kh ns’kksa }kjk fd;k tkus okyk O;; such expenditure are termed as Net foreign dgk tkrk gSA ;g O;; jk\"Vªh; vFkZO;oLFkk }kjk investment. This expenditure is more than the actual fon’s kh mRiknu ds mRiknu eas fd, x, okLrfod O;; expenditure made by the national economy in the ls vf/kd gSA ;g vk;kr vkSj fu;kZr eas fd;k x;k dqy production of foreign output. Simply, it is a total O;; gSA expenditure made in the import and exports. 4) oLrqvksa vkSj lsokvksa ds Ø; ij ljdkj }kjk fd, x, 4) The expenditure incurred by the government on the acquisition of goods and services, such expenditure O;; dks dgk tkrk gSA is termed as government expenditure or government purchase. blfy,] th-,u-ih- dh x.kuk fuEufyf[kr fof/k ls dh tkrh gS& th-,u-ih- = futh miHkksx O;; + ldy ?kjys w futh Therefore, GNP is calculated in the following way: fuos’k + 'k)q fons’kh fuos’k + oLrqvksa ,oa lsokvksa ij GNP = Private Consumption Expenditure (C) + Gross ljdkjh O;; Domestic Private Investment (I) + Net Foreign O;; fof/k }kjk th-,u-ih- dh x.kuk esa fuEufyf[kr Investment (X – M) + Government Expenditure lko/kkfu;ksa ij fopkj fd;k tkrk gS& on Goods and Services (G) 1) iqjkuh oLrqvksa ;k igys ls LokfeRo okyh oLrqvksa ij gksus Precautions okys O;; ij fopkj ugha fd;k tkuk pkfg,] D;ksfa d bl The following precautions are considered in calculation of Ádkj dk O;; pkyw o\"kZ ds nkSjku mRiknu eas dkbs Z o`f) GNP through expenditure method: ugha djsxkA 1) The spending on second hand goods or previously 2) blh Ádkj igys ds LokfeRo okys ck.Mksa ;k va’kksa ij gksus okys O;; ij fopkkj ugha fd;k tkuk pkfg, D;ksfa d owned goods must not be considered because such blds ifj.kkeLo:i pkyw o\"kZ ds nkSjku vfrfjDr expenditure is not making any addition to the present mRiknu ugha gks jgk gAS year production. 3) vUrj.k Hkqxrku ij fd, x, O;; ij fopkj ugha fd;k tkuk pkfg, D;kafd ,slk O;; fdlh mRiknd xfrfof/k 2) In similar way, expenditure incurred on previously eas ifj.kkeh ugha gksxkA vUrj.k Hkqxrku eas csjkstxkjh owned bonds or share must not be considered because ykHk] o`)koLFkk i’sa ku] lkoZtfud _.k ij C;kt vkfn it is not resulting into additional production during the 'kkfey gks ldrs gaSA current year. 1.6.10. 3) The expenditure incurred on transfer payment must eyw r% jk\"Vªh; vk; dh x.kuk rhu ekud fof/k;ksa ds ek/;e not be considered as such expenditure would not ls dh tkrh gS] 'k)q mRikn ¼;k eYw ; of/kZr½ fof/k] result in any productive activity. The transfer payment ?kVd&vk; ;k ?kVd ykxr fof/k vkSj O;; fof/kA miyC/k may comprise of unemployment benefit, old age lwpuk iw.kZr% lVhd gksus ij jk\"Vªh; vk; ds leku eYw ; pensions, interest on public debt etc. Ánku djus ds fy, ÁR;sd fof/k dq’ky gSA 1.6.10. Choice of Methods of National Income fofHkUu n’s k miyC/k lwpuk dh deh ds dkj.k fof/k dh vko’;drkuqlkj ÁR;sd fof/k dk Á;ksx ugha dj ldrAs Basically, the national income is calculated through the blfy, jk\"Vhª ; vk; dh fof/k dk p;u djrs le; lko/kku three standard methods that are, net product (or value- jguk egÙoiw.kZ gSA ftu eq[; fLFkfr;ksa ds fy, vk; dh ,d added) method, factor-income or factor cost method and fof’k\"V fof/k pquh tkrh gS] os fuEukuqlkj gaS& expenditure method. Each method is efficient to provide 1) jk\"Vªh; vk; dk fo’ys\"k.k djus dk mn~ns’;] vkSj same value of national income when the available 2) vko’;d lwpuk dh mifLFkfrA information is sufficiently accurate. The different countries may not apply each method due to insufficiency jk\"Vªh; vk; dk fo’ys\"k.k djus dk mn~n’s ; fof/k eas p;u of available information as per the requirement of djus ds fy, ,d egÙoiw.kZ fu/kkZjd gSA tSls fd fdlh jk\"Vª methods. Therefore, it is important to be careful while ds 'kq) mRiknu dh x.kuk djuk gS rks eYw ; of/kZr fof/k dks choosing the method of national income. The prime ykxw fd;k tkuk pkfg, ;k ;fn Á;kstu ?kVd vk; dk conditions against which a specific method of income is forj.k fu/kkZfjr djuk gS rks vk; fof/k dks ykxw fd;k tkuk chosen are as follows: pkfg,] tcfd ;fn Á;kstu vFkZO;oLFkk ds dqy O;; dk 1) The objective of analysing the national income, and * 2) The presence of required information. The purpose of analysing the national income is a significant determinant to make choice among the methods. As if the purpose is to calculate the net output of a nation then the value added method must be applied or else if the purpose is to determine the distribution of factor income then the income method must be applied while if the purpose is to estimate the total expenditure of an economy then the expenditure method *