Importance of national income statistics
Income distribution. National income statistics show how the income is distributed in various sectors or regions in the economy. This assets the government in determining the extend of income inequalities and therefore diverse appropriate polices
Government planning. Economic plans are prepared by the government to develop various sectors /regions of the country therefore national income statistics provide information regarding the resources of a country and they can be put under optimum use. This may be achieved through policies such as income pricing, trade and taxation policies.
Contribution made by different sectors. National income statistics enable the government to assess the contribution towards the national output by different sectors of the economy e.g. agriculture, industry, transport, construction and building, electricity generation etc.
To determine welfare National income statistics can be used to determine the standard of living or economic welfare of a given country using income per capita. Other factors constants a rise in income per capital indicates an improvement in the standard of living and vice versa per capital.
To measure economic growth and development. The statistics out as yard it enabling the government to assets the level of growth and development.
International comparison of economic performance. It gives an indication of the economic performance of a country in comparison with other countries
For research purposes National figures and statistic are important to scholars of economic and research international agencies like UN, IMF and World Bank use the national income statistics to identify the poorest countries from the richest countries This forms the basis of judging which countries should receive foreign aid and which countries should give aid.
Budgeting National income statistics assets the government in drawing up the national budget.
National income statistic enable the government to determine the pattern of expenditure and also know the type of goods and services consumed by the a nationals .
National income statistics can be used to compare the welfare of a given country over time.
National income statistic enables one to determine the extent to which a particular country is dependent on other countries.
National income statistics enable a country to identity lagged sectors.