Effective availability of statistical material:
Some persons like electricians, plumbers, etc., do some job in their spare time and receive income. The state finds it very difficult to know the exact amount received from such services. This income which, should have been added to the national income is not recorded due to {be lack of full information of statistics material.Hence there is need to effectively collect statistical information to measure nationa income accurately.
Eliminating dangers of double counting:
While computing the national income, there is always the danger of double or multiple counting. If care is not taken in estimating the income, the cost of the commodity is likely to be counted twice or thrice and national income will be overestimated.
Inclusion of Non-marketed services:
In estimating the national income, only those services are included for which the payment is made. The unpaid services, or non-marketed services are excluded from the national income.
Effective calculation of depreciation allowance:
The deduction of depreciation allowances, accidental damages, repair, and replacement charges from the national income is not an easy task. It’ requires high degree of judgment to assess the depreciation allowance and other charges.
Non Inclusion of Transfer earnings:
While measuring the national income, it should be seen that transfer payments should not become a part of national income. The payments made as relief allowance, pensions, etc. do not contribute towards current production, hence doesnt give effective picture of national income.
Inclusion of Self-consumed production both Unorganised and non monetized products and services:
In developing countries, a significant part of the output is not exchanged for money in the market. It is either consumed directly by producers or bartered for other goods This unorganized and non-monetized sector must be added to National income to give actual scenario of national income.
Price level changes:
National income is measured in money terms. The measuring rod of-money itself does not remain stable. This means that national income can change without any change in output.
Systematic accounts maintained need to be maintained :
Most of the producers do not keep any record of the sale of the products in the market. This makes the task of national income still more complicated.
No occupational classification:
There is no occupational specialization in the under-developed countries. People receive income by working in various capacities. One person sometimes works as carpenter and at another time as mason. The statisticians cannot accurately measure the income of such persons which causes loss in actual terms of national income.Hence they must be added to national income calculation.
Unreliable data:
The statisticians themselves do not feel the importance of figures which they collect They also do not take much pains for getting the reliable data. The figures of national Income are, therefore, not up-to-date in the under-developed countries.
