NATIONAL INCOME

INTRODUCTION :

             

                       National income is an uncertain term which is used interchangeably with national dividend, national output and national expenditure. On this basis, national income has been defined in a number of ways. In common parlance, national income means the total value of goods and services produced annually in a country.

 DEFINITION OF NATIONAL INCOME :

                     According to Marshall : " The labour and capital of a country acting on its natural resources produce annually a certain net aggregate of commodities, materials , and immaterial including services of all kinds... this is the true net annual income or revenue of the country or national dividend ".

FORMS OF NATIONAL INCOME :

Gross domestic product (GDP	Gross National Expenditure (GNE)
GNP at market price	GNP - Net income from abroad
NNP at market prices	GNP at factor cost + indirect taxes - subsidies
Net domestic product (NDP)  at market price	GNP at market prices - depreciation capital consumption allowance.
NNP at factor cost or National  income or national product	NNP at market price - net factor income from abroad
NDP at factors cost or Domestic income or domestic product	NNP at market - indirect taxes + subsidies
Private income	National income - Net factor income from abroad
Income from domestic product  accruing to private sector	income from domestic product accruing to private  sector + interest on public dept + net factor income from abroad + transfer payment + current transfer from the rest of the world
Personal income	NDP at factor cost - income from domestic product accruing to government departments  - savings of non departmental enterprises.
Personal income or disposable    income	Private income - savings of private corporate sector- corporation taxes.
Personal income or disposable    income	Personal income - direct taxes paid by household  and miscellaneous fees,fines,etc.

CONCLUSION :

             

                Thus these all of the above explanations are about the national income and various forms of national income and also how to calculate these forms of national incomes.