Net national product

To determine the state of the economic system as a whole, it is necessary to aggregate (summarize) the position of the economy of each organization. Thus, it is possible to identify statistical indicators that will characterize total social production. These indicators are called macroeconomic. In turn, their totality forms a system of national accounts.

To obtain the indicator of the part of the GNP that the population of the state could use, without taking into account the wear and tear of structures, structures, equipment, machinery, the depreciation deductions should be subtracted from GNP . As a result, a net national product (CNP) will be obtained.

Using this indicator, the total annual volume of goods and services produced is measured in the entire economic system, which includes different firms, manufactures, foreign companies, households whose subsequent activities do not lead to a decrease in the country's production capacity .

A net national product is the total volume of services and goods manufactured (produced) and used (used) by the population for a certain time. The term is set, as a rule, per year.

A net national product is defined in several ways. Using the first method, deduction of depreciation costs from GNP is carried out. Subtract from the gross national product costs that went to recover already used fixed capital.

The second method is the establishment of the cost of acquiring the main components of the NPP. Among the main parts that make up a pure national product, there are state expenses for the purchase of raw materials and goods, general consumer spending of citizens and others.

The NPP is a reflection of the full cost of GNP, which is intended for use by the public. At the same time, a pure national product contains various taxes that do not fall directly into the consumer sphere of the population. As a rule, these duties include excises and customs duties. Indirect taxes are considered to be the only elements that do not reflect the actual contribution of economic potential to the NNP.

Net national product and national income (NI)

With the retention of indirect taxes, the ND indicator appears from the entire volume of NNP. The national income is considered to be the value newly created during the year. This value reflects what has been added to the social welfare through production in the current period (year). In this regard, the calculation of national income does not take into account the amount of indirect taxes, depreciation, government subsidies. The resulting indicator is the "net earnings" of the population. National income is therefore considered to be a sufficiently important macroeconomic indicator and, in this connection, is widely used in comparative analysis.

In economic practice, the used and produced ND are distinguished.

The total amount of newly created services and goods is considered to be national income. The used ND for accumulation and consumption is called ND produced except for losses (damage during transportation, storage, from military operations, to the amount of construction in progress, from natural disasters, etc.) and foreign trade balances.

The ND includes products of the material production sphere and the value of goods from the service sector. In accordance with the methodology of international statistics, the indicator of the quantitative difference between national income and gross domestic product is equal to the cost of deductions for depreciation.