In this article we will study Methods for Calculation of National Income.. We will discuss different formulae of Calculation of National income
Methods for Calculation of National Income
Formulae for calculation of National Income :
1). Net Indirect Taxes = Market Price – Factor Cost.
2). Depreciation = Gross value – Net value.
3). Net factor income from abroad = National value – Domestic value.
4). GDPfc = GDPmp – Net indirect Taxes.
5). NDPmp = GDPmp – Depreciation.
6). NDPfc = GDPmp – Net Indirect Taxes – Deprecation.
7). GNPmp = GDPmp + Net factor income from abroad.
8). GNPfc = GDPmp – Net Indirect Taxes.
9). NNPmp = GDPmp – Deprecation.
10). NNPfc = GNPmp – Net indirect taxes – deprecation.
11). Private Income = Income from domestic product accruing to private sector + Net factor Income from abroad + Current transfers from government + National debt interest + Net current transfers from the rest of the world.
12). Personal Income = Private income – corporate tax – Retained Earnings.
13). Personal Disposable Income = Personal Income – Personal taxes – Miscellaneous receipts of govt.
= Personal Consumptions Expenditure + Personal Savings.
14). National Disposable Income = National Income + Net Indirect taxes + Net current transfers from rest of the world.
15).Gross National Disposable Income = Net national disposable income + Deprecation.
16). NVAfc = Sales + ΔStock – Intermediates consumption – Deprecation.
17). GVAfc = Sales + ΔStock – Intermediates consumption – Net indirect taxes.
18). NVAmp = Sales + ΔStock – Intermediate consumption – Deprecation.
19). GVAmp = Sales + ΔStock – Intermediates consumption.