Difficulties

Difficulties During a year, Interest on national debt is also considered transfer payments because it is paid by the government to individuals and firms on their past savings without any productive work. . . Difficulties in assessing 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. . . Unpaid services A housewife renders a number of useful services like preparation of meals, serving, tailoring, mending, washing, cleaning, bringing up children, etc. She is not paid for these services. Her services are not directly included in national income. Such services performed by paid servants are included in national income. The reason for the exclusion of her services from national income is that the love and affection of a housewife in performing her domestic work cannot be measured in monetary terms. Similarly, there are a number of goods and services which are difficult to be assessed in money terms for the reason stated above, such as rendering services to friends, painting, singing, dancing, etc. . . Income from illegal activities Income earned through illegal activities like gambling, smuggling, illicit extraction of liquor, etc., is not included - - National Income