The history of development of national accounts is not much old in Nepal. The first attempt to estimate national income of Nepal was made in 1961 when a committee comprising senior officers of the then Ministry of Economic Planning and University teachers was set up. Following the 1953 UNSNA recommendations, the committee prepared estimates of the Gross Domestic Product for the fiscal year 1961/62. After a gap of two years, publication of the Gross Domestic Product started from 1964/65. Since then the national accounts statistics are being prepared on a regular basis.
MEANING AND NEED OF NATIONAL ACCOUNTING
National accounting can be defined as the rendering of systematic statements about the economic activity of a nation during a certain period with the aim of describing the structure of an economic system in terms of transactions. In other words, national accounting is a statistical description of the economic activities like production, income, consumption, saving, investment, exchange of goods and services, and transfers payment taking place within an economy over a period of time. It provides a comprehensive and detailed record of the complex economic activities taking place within an economy and of the interaction between the different economic agents, and groups of agents that takes place on markets or elsewhere. The accounts are compiled for a succession of time periods, thus providing a continuing flow of information that is indispensable for the monitoring, analysis and evaluation of the performance of an economy over time. It provides information not only about economic activities, but also about the levels of an economy’s productive assets and the wealth of its inhabitants at particular points of time. Finally, it displays the links between an economy and the rest of the world. Hence, national accounts statistics provide information about the economic performance of a country. Compiled and presented in different approaches, formats and details, national accounts give aggregate and sectoral insights into the economy and allow derivation of macro-economic indicators useful to researchers, planners and decision makers. Gross Domestic Product (GDP) is the prominent and most commonly used indicator of national accounts.