Why are tranfer payments not included in the estimation of National Income ? Do we arrive at the value that these are not important for the economy ?

Explanation

Transfer payments are not included in National Income as these do not lead to corresponding flow of goods and services. These are not included because of limitation of being one sided. These are very important for growth and welfare of economy like donations, old age pension, unemployment allowance, tax payments. These do promote social and economic justice of those who receive these payments.