2.2. National income as a macroeconomic indicator.

National income - macroeconomic measure of the re-created in the material production cost. Economic well-being of society in a country made up of different elements, the management of which reflects a variety of indicators.

The economic activity of the country is the material basis of all other spheres of life - political, social, cultural, etc. This determines the importance of its continuous improvement to create national wealth.

Thus, the national wealth is composed of a set of wealth created by the labor of the current and preceding generations involved in the reproduction of natural resources available in the community.

The volume of national wealth is defined as a rule, in terms of value. To study the dynamics of the physical volume of the national wealth and its individual elements necessary to use a comparable price.

The elements are the foundations of the national economy. Among them are the fixed and current assets. In Greater economic dictionary gives the following definitions of these elements.

The main fund is part of the national property, created by social labor, which is in various forms of ownership, which for a long time repeatedly or continuously in an unchanged form of natural-material is used in the economy is gradually shifting its value to the products and services produced. The main defined as objects with a lifetime of at least a year and a value not less than established by statute. The set of assets that directly affect the subject of labor (machines, equipment, tools, etc.) is called an active part of fixed assets. For the passive part of the fixed assets include operations which provide conditions for the normal course of the manufacturing process (buildings, etc.). Fixed assets should be grouped by ownership, areas, sectors of the economy. Data on the presence of fixed assets used in assessing the intensity of labor, capital productivity, capital intensity, fondoosnaschennosti production.

Funds negotiable - it is part of the production assets of associations, enterprises, organizations, entirely consumed in one production cycle and transports the fully their value to the manufactured product. These include inventories (raw materials, fuel, spare parts, tools, household goods, seeds, planting materials, animal feed and fodder, animal fattening, young animals, etc.), work in progress and semi-finished products of own production. Consumption of working capital in production is an important part of the production costs and the basis of intermediate consumption. The peculiarity of this part of the productive assets that they are involved in one production cycle, alter its natural-material form, and their cost is fully transferred to the cost of manufactured products and services.

Thus, based on the division of national collections fixed and circulating on two criteria: the technical and economic criteria of transformation, ie part in production terms cycles transformation or maintain its technical structure and the method of compensation value.

The level of economic development of a society and its well-being may reflect different rates. Of particular importance among them, of course, belongs to an annual rate of output, ie, goods and services. For this purpose, the gross domestic product (GDP), which is defined as the total or aggregate, the total market value of final goods and services produced within a country in one year, regardless of the factors of production are owned by residents of a country or owned by foreigners (non-residents).

The terms "gross" and "domestic" product means that we are talking about the overall, aggregate products produced across the economy.

In the definition of the expression of GDP than cash market price of goods and services, and other acceptable means of measuring the volume of production, such as physical quantities (tonnes meters, pieces, etc.). But only a monetary value to make different in nature and purpose of the goods and services are comparable. Only by measuring the value of goods and services in the money we are able to judge on the performance of economic activities and enterprises, and society as a whole in a given period, in particular, for the year.

By the end of production of the goods in the definition of GDP is to be understood that in the calculation of GDP includes only final goods, intended for direct consumption, ie excludes all intermediate goods used to produce final goods. So, for example, GDP does not include the cost of grain, flour, yeast, which are necessary to produce finished goods bakery production. Otherwise the cost of intermediate goods would be taken into account twice, since it is included in the final product, in this case, there would be double counting. Intermediate products differ from end that are used to produce other products. Final goods and services purchased for immediate consumption.

The following macroeconomic indicator is the gross national product (GNP), it is defined as - the total market value of final goods and services produced in an economy over a certain period of time (usually a year). GDP measures the value of output produced by factors of production owned by the citizens of this country (residents), including those in other countries.

Three ways of measuring GNP (GDP):

a) Expenditure (a method of end use);

b) Value added (production method);

c) income (distribution method).

In the calculation of GNP expenditure added costs of all economic agents using GNP, households, firms, government and foreigners (the cost of our exports). Actually it is the total demand for manufactured GNP. The total costs can be broken down into several components:

GNP = C + I + G + Xn

where C - personal consumption expenditures, including expenditures of households on durable goods and the current consumption of services, but does not include the cost of buying a home;

I - gross investment, including business investment, or investment in fixed assets (cost companies for the purchase of new production facilities and equipment).

Among the components of GNP are usually the biggest consumer spending (C), and the most volatile - investment spending (I).

For the economy as a whole the sum of all value added is equal to the value of final goods and services. The manufacturing method of calculating GNP (GDP) in Kazakhstan is a major as the production of products and services are the most accessible and operational information that is collected by the State Committee on Statistics on the basis of statistical reporting companies.

In calculating GNP income summarizes all kinds of factor incomes (wages, rent, interest, etc.) as well as two components that are not income: depreciation and net indirect business taxes, ie taxes less subsidies. As with other methods of calculation, in this case there is a relationship between measures of GDP and GNP;

GNP = GDP + net factor income from abroad

Net factor income from abroad are equal to the difference between the proceeds of nationals abroad and foreign income received in that country.

The largest source of income in the GNP is the remuneration of employees Z. This type of income includes: wages of employees of public and private companies, as well as various supplements to wages and salaries (contributions employers to social insurance, health care, private foundations, social welfare, etc.). Income derived by the owners of the land, buildings and equipment - rental payments R.

Income owners of financial capital - the percentage of P.

Profit corporations P and income on the property.

In the system of national accounts in profit corporations stand out: corporate taxes (levied by the state); dividends - of the profits received by the shareholders in the form of income on shares, retained earnings of corporations (earmarked for investment in capital goods, securities, etc. ). The income on the property is a non-corporate profit business sector.

The structure consists of costs companies money, Non-interest income - is depreciation of A and indirect business taxes N.

Calculation of GNP by income can be represented as follows:

GNP = Z + R + P + P + A + N

GNP, calculated at current market prices, estimates the nominal value of the total annual production. To account for the effects of inflation on the value of the nominal GDP figure is used, which gives a quantitative assessment of changes in the level of average prices of goods and services. It is a measure of GNP deflator. It takes into account changes in prices on a wide range of consumer goods and services and investment naznacheniya. The definition of real GNP is necessary to assess the rate of growth of output current with respect to the base year, ie to determine the economic dynamics of the national production.

In addition to GDP and GNP there are a number of other important measures of income and product. The GNP does not give an accurate idea of ​​the volume of products produced during the year, as it includes depreciation and amortization expenses necessary for reimbursement of capital consumption (worn-out machinery and equipment). Therefore, the indicator of the economy in the net national product (NNP), which is determined by subtracting from GNP deductions for capital consumption (depreciation).

NNP = GNP - depreciation.

To understand the essence of the national income (NI) recall that the income is paid by manufacturers to suppliers of inputs or resources. Among them, the main role played by human resources, for which the population receives income in the form of wages. Other components of the LP is the income received in the form of interest on capital, rent and profit. Thus, from the standpoint of public, National Income represents total revenue obtained from the resource providers participate in the current production. Since the indirect business taxes are not involved in the sphere of production, their amount should be subtracted from the GNP.

Thus, the national income is an important indicator of economic activity of the nation, and so now the statistical reports about him on the recommendation of the United Nations was introduced in all countries.

National income is the basis of personal income. Personal income (income earned) and National Income (earned income) are different from each other for the reason that part of the hard-earned income - social security contributions (social security taxes), taxes on corporate income and undistributed corporate profits - in fact do not fall within household. On the contrary, much of the income that falls within the household, for example, transfer payments - is not the result of labor.

It is useful to recall that the transfer payments made up of these types of payments, as:

1. payment of old-age insurance and accident insurance, as well as unemployment benefits based on social programs;

2. welfare payments;

3. various payments to veterans, such as education grants and disability benefits;

4. interest payments made to governments and consumers;

5. private payments.

Turning from the national income as a measure of earned income to personal income as a measure of income actually received, we must subtract from the LP are three types of income that are earned but not received, as well as the added income received, but are not the result of current employment. This is done as follows:

National income (earned income)

- Social security contributions

- Taxes on corporate profits

- Undistributed corporate profits

- Transfer payments, we

Personal income (income earned)

Disposable income is in the personal possession of members of society. Its value can be obtained by subtracting individual taxes (income, on private property, inheritance) of personal income. Disposable personal income is used for household consumption and savings.

Functional distribution of the national income distribution National Income means the way of the country between those who carry out different functions in the economy (economy provides different types of resources), National Income division on wages and salaries, self-employment income, corporate profits, interest and rent.

National expenditures include expenditures of the state budget, spending all kinds of enterprises and household spending.

The composition and structure of the state budget are determined on the basis of the specific socio-economic conditions and policy goals. State expenditures include allocations for innovation and investment activities related to capital investments in manufacturing and non-manufacturing, and other costs of expanded reproduction, and restoration and protection of the environment. The purpose of these expenditures is the socio-economic development of the country or its separate territorial entities.

It is necessary to distinguish between the development budget and the operational budget. In Kazakhstan, this distinction is mandatory. The expediency of such budget allocation occurs when the required special consideration to the differences in the approaches to the formation and evaluation of the expenditure side of the budget, depending on the direction of funds for these purposes. This is based not only from the need to finance current spending priority, but also recognition of the importance of social and economic development of the country and some of its territorial units, as well as select regional destinations such development.

Element of national expenditures are investment costs of enterprises on production, consumption of raw materials, fuel, energy, labor remuneration of workers, office workers, collective farmers, depreciation and so on.

Evaluation of the national wealth have also reported a new dimension to economic analysis and provide better develop economic forecasts and to better define economic policies.

Thus: National resources - a collection of all used in the economic activity of the country natural, labor, capital and financial resources, as well as monetary capital.

GNP is one of the most important indicators of social well-being, it is defined as the market value of final goods and services produced in the economy during the year.

National income is a measure of economic activity of the nation and the basis of personal income.