National Income Accounting in India & Related Organizations part 17

 Okay, here are the structured notes from the Telugu video transcript on National Income Accounting in India:

Subject: National Income Accounting in India & Related Organizations

1. NSO (National Statistical Office)

• Full Form: National Statistical Office

• Function: The current body responsible for calculating India's National Income.

• Established: May 23, 2019.

• Formation: Created by merging the CSO and NSSO.

2. CSO (Central Statistical Organisation/Office)

• Full Form: Central Statistical Organisation (Referred to as Office and Organisation).

• Telugu Name: Kendra Gananka Samstha (Central Statistics Body).

• Establishment: 1951.

• Pre-NSO Role: Was the primary body estimating National Income before NSO's formation.

• National Income Estimation Responsibility: Officially assigned the task in 1954.

• Data Calculation: Despite getting the responsibility in 1954, it calculated national income data starting from the year 1951.

3. NSSO (National Sample Survey Organisation/Office)

• Full Form: National Sample Survey Organisation.

• Establishment: 1950.

• Pre-NSO Role: Primarily focused on estimating Poverty and Unemployment and conducting surveys like the National Family Health Survey (NFHS).

• Merger: Merged with CSO in 2019 to form NSO.

• Current Status of Functions:

  • Poverty Estimation: Largely taken over by NITI Aayog using methods like the Multi-dimensional Poverty Index (MPI).

  • Unemployment Estimation: Now handled by the NSO (successor body) through surveys like the Periodic Labour Force Survey (PLFS), calculating rates like WPR (Work Force Participation Rate) and LFPR (Labour Force Participation Rate).

4. National Income Committee (Mahalanobis Committee)

• Establishment: 1949 (Post-Independence).

• Purpose: To devise a methodology for estimating National Income in India.

• Chairman: Prof. P.C. Mahalanobis.

• Reports:

  • First Report: 1951 (covering 1948-49, 1949-50, 1950-51).

  • Final Report: 1954.

• Significance: Laid the groundwork for systematic national income estimation, later handled by CSO. Recommended using methods like Production and Income methods.

5. NSO Divisions (Structure & Functions)

• NSO has four main divisions:

  • Survey Design and Research Division: Located in Kolkata. Responsible for designing survey methodologies and research.

  • Field Operations Division: Headquartered in Faridabad. Responsible for collecting data from the field.

  • Data Processing Division: Located in Kolkata. Processes the collected data.

  • Coordination and Publication Division: Located in Delhi. Coordinates with various departments and handles data publication.

6. NSC (National Statistical Commission)

• Full Form: National Statistical Commission.

• Established: June 1, 2005.

• Became Operational: July 12, 2006.

• Recommended By: C. Rangarajan Committee (Committee formed 2000, Report 2001).

• Purpose: Acts as an autonomous apex body to oversee and coordinate statistical activities, ensuring data quality and independence.

• Structure: Chairman + Members (Video mentions Chairman + 2 members currently active).

• Tenure: 3 years.

• Current Chairman (as per video): Rajeeva Laxman Karandikar (Appointed Nov 30, 2022).

• Current Members (as per video): Mukesh Mohania, Asit Kumar Sadhu.

• Significance: Designed as an independent body to ensure credibility and impartiality in statistical data, particularly after controversies surrounding previous data releases. Difficult to remove members/chairman to ensure autonomy.

7. Green GDP (Harita Deshiyotpathi - Green National Product)

• Concept: Adjusting GDP to account for the depletion of natural resources and environmental degradation caused during production.

• Formula: Green GDP = GDP – DN

• DN: Depreciation of Natural Resources (Value of resources consumed) + Environmental Costs (Cost to mitigate pollution).

• Kirit Parikh Committee (2010): Recommended incorporating Environmental Accounting into the National Accounts system.

• Partha Das Gupta Committee (2011 Report 2013): Developed a high-level roadmap for implementing Green GDP accounting.

• CSO Framework (1990s): CSO had developed "A Framework for Development of Environmental Statistics" earlier.

• Pilot Project: Goa state conducted a pilot for natural resource accounting around 1999-2000.

• Current Status: Green GDP accounting is not yet officially implemented in India's mainstream national income figures.

8. Comptroller and Auditor General (CAG)

• Role: Has the mandate to conduct audits related to environmental issues and the expenditure/loss concerning natural resources.

9. Items Included in National Income Calculation

• Value of Final Goods and Services (avoiding intermediate goods).

• Inventories (Value of unsold goods produced in the previous year, sold in the current year).

• Salaries, Wages, and Allowances of employees.

• Factor Payments: Rent, Wages, Interest, Profit.

• Value of New Machinery and New House Construction.

• Depreciation: Included in Gross measures (GDP, GNP), excluded in Net measures (NDP, NNP). (Value of machinery whose lifespan hasn't expired is included).

• Commissions paid to agents for selling financial assets (shares, bonds, debentures), second-hand goods, lottery tickets.

• Salaries/Allowances of Political Office Holders (President, Governor, MLA, MP etc.) and Judiciary (SC/HC Judges).

• Net Exports (Exports value minus Imports value).

• Net Factor Income from Abroad (NFIA): Included for GNP/NNP, not for GDP/NDP. (Difference between income earned by Indians abroad and income earned by foreigners in India).

• Undistributed Corporate Profits.

• Social Security Contributions (made by employers/employees).

• Interest received on Bonds and Debentures.

• Private Consumption Expenditure (C).

• Investment Expenditure (I).

• Government Final Consumption Expenditure (G).

• Value of Production for Self-Consumption (e.g., farmer consuming own produce).

• Mixed Income of the self-employed.

• Value Added at each stage of production.

• Subsidies: Considered when calculating National Income at Factor Cost.

10. Items Excluded from National Income Calculation (or treated specifically)

• Intermediate Goods (Raw materials used up in production).

• Value of Second-Hand Goods transactions (already counted when new).

• Purchase/Sale of Old Shares, Bonds, Debentures (Financial transactions, don't represent current production).

• Windfall Gains (Lottery winnings, gambling income – considered transfers).

• Transfer Payments (Pensions, scholarships etc. – no corresponding productive activity in the current period).

• Illegal Income.

• Services of Housewives (Non-market activities).

• Indirect Taxes: Considered when calculating National Income at Market Prices.

• Value of unsold goods produced in the current year but held as stock (counted under 'Inventories' or change in stock, not as final sale).

• Value of unsold, unconsumed goods from previous periods that are not sold in the current year (e.g., farmer's stored grain not used/sold).