Uses of national income figures include:
(i) Economic planning: National income statistics assist the government in planning economic development. Successful planning requires fairly accurate figures upon which decisions can be based.
(ii) For estimating per capita income: Average per capita income can easily be obtained if the national income is known.
(iii) Measurement of standard of living: National Income statistics are used to indicate the overall standard of living of the people. The larger the size of income, the higher the standard of living of people, provided that the income is equitably distributed.
(iv) Useful guide to investors: The data gathered on people's expenditure incomes and outputs will put investors in position to know whether it is worth investing their capital in the Country or not.
(v) Comparison of economic growth among countries: National income statistics are used to compare the living standards of different countries. This is done on the basis of average income per head.
(vi) National Income statistics also give vital information about the different sectors of the economy, their rate of growth, their needs for resource allocation.
(vii) National income figures can show at a glance whether or not the country's economy is growing from year to year and at what rate.
(viii) National income statistics will indicate areas of greatest needs in terms of resources allocation and appropriate measures will be taken to correct the imbalance.
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