Economic nature of total national product and total domestic product in the system of national accounts

Abstract

This article discusses the theoretical and methodological basis for determining budget
expenditures on public administration. Public expenditure accounting is determined by the system of
national accounts and its main indicators – gross national product and gross domestic product. Economic
values and features of GNP and GDP are revealed. In terms of economic content, these indicators are
mutually similar and can be defined as GNP/GDP as a whole. However, in the developed world, the
value of GNP exceeds GDP by about 1-2 per cent, GNP does not take into account only the market value
of all recent goods and services produced in the national economy, but also takes into account products
produced over a certain period of time in the units of transnational companies abroad. These indicators in
the economy of Kazakhstan are equal, as there are no transnational companies that increase the volume of
the national product. The SNA is of practical importance in providing a conceptual framework that not only
identifies the indicator of the aggregate national product, which is a composite indicator of the economic
situation, but also guides different approaches to economic statistics.
For Kazakhstan, the main problem is not the increase in the share of public expenditure in GDP, but
the improvement of the structure, quality, efficiency and regulation of these costs.