National Product and Expenditure
1.6 The production within the economy over a given period of time is spent either for consumption of its members or for addition of fixed assets or for addition to the stock of existing productive assets within the country. Hence, production can also be measured by considering the expenditure of those who purchase the finished or final goods and services. The national expenditure is the sum of expenditure of all spending of institutional sectors viz., government, households, non-profit institutions serving households and enterprises. Here also, it is necessary to include only the expenditures on "final use" in order to avoid duplication i.e., one has to omit the network of intermediate sales of all products needed in further production. The expenditure on final goods and services may be purely for consumption purposes like consumption of food, clothing, shelter; services etc., or for capital formation such as addition to buildings, plant, machinery, transport equipment, etc. Some goods may not be immediately sold and may be kept aside as stocks. These goods which are added to stocks are also accounted for as finaal expenditure.[Reproduced from CSO publication as in the earlier Posts].
1.6 The production within the economy over a given period of time is spent either for consumption of its members or for addition of fixed assets or for addition to the stock of existing productive assets within the country. Hence, production can also be measured by considering the expenditure of those who purchase the finished or final goods and services. The national expenditure is the sum of expenditure of all spending of institutional sectors viz., government, households, non-profit institutions serving households and enterprises. Here also, it is necessary to include only the expenditures on "final use" in order to avoid duplication i.e., one has to omit the network of intermediate sales of all products needed in further production. The expenditure on final goods and services may be purely for consumption purposes like consumption of food, clothing, shelter; services etc., or for capital formation such as addition to buildings, plant, machinery, transport equipment, etc. Some goods may not be immediately sold and may be kept aside as stocks. These goods which are added to stocks are also accounted for as finaal expenditure.[Reproduced from CSO publication as in the earlier Posts].
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