|National income refers to the total income of the nation in a particular period of time. National income data reveals the aggregate economic performance of the economy as a whole. National income – represents a receipts total, expenditure total and the total value of production. Since one person’s income is another person’s expenditure and each commodity is bought and sold at its market prices, a|
Various concepts of National Income
- GDP is expressed in money terms; it is the money value of final total goods and services produced within the country during a period of time. The value of final goods and services is calculated at the current market price; hence it is called GDP at market price.
- GDP includes only those goods and services which have market value and which are brought in the market for sale.
- GDP does not include depreciation of capital goods and services during the course of production as well as transfer payment and capital gains are not included under GDP.
|1. Gross Domestic Product (GDP)||440|
|Net Factor income from aborad||+ 41|
|2. Gross National Product (GNP)||481|
|3. Net National Product (NNP)||461|
|Net indirect taxes (indirect taxes - subsidies)||- 6|
|Corporate profit taxes, undistributed profits, and valuation adjustment||- 2|
|Social security contribution||- 3|
|Transfer payments to persons||+ 6|
|Personal interest income||+ 2|
|5. Personal Income (PI)||458|
|Personal taxes (direct taxes)||- 111|
|6. Personal Disposable Income (PDI)||347|