National Income Formulas

National Income Formulas

National Income Formulas
National Income Formulas

National Income Formulas

  1. GVA at basic prices = CE + OS/MI + CFC + Production taxes less production subsidies
  2. GVA at factor cost (earlier referred to as GDP at factor cost) = GVA at basic prices – Production taxes less production subsidies
  3. GDP = ΣGVA at basic prices + Product taxes – Product subsidies
  4. NDP / NNI = GDP / GNI – CFC
  5. GNI = GDP + Net primary income from ROW (receipts less payments)
  6. Primary incomes = CE + Property and Entrepreneurial Income
  7. NNDI =NNI + other current transfers from ROW, net (receipts less payments)
  8. GNDI = NNDI + CFC = GNI + other current transfers from ROW, net (receipts less payments)
  9. Gross capital formation Gross savings + Net capital inflow from ROW
  10. GCF=GFCF+CIS+ Valuables + ‘Errors and Omissions’
  11. Gross disposable income of government = GFCE + Gross saving of GG
  12. Gross disposable income of households = GNDI – GDI of government – Gross savings of all corporations

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IMPORTANT ACRONYMS AND FORMULAE FOR NATIONAL INCOME

  • GDP = Gross Domestic Product
  • GVA = Gross Value Added
  • GNI = Gross National Income
  • NDP = Net Domestic Product
  • NNI = Net National Income
  • GNDI = Gross National Disposable Income
  • PFCE = Private Final Consumption Expenditure
  • GFCE = Government Final Consumption Expenditure
  • CFC = Consumption of Fixed Capital
  • GFCF = Gross Fixed Capital Formation
  • CIS = Changes in Stock
  • CE = Compensation of Employees
  • OS = Operating Surplus
  • MI = Mixed Income
  • ROW = Rest of the World

 

 

 

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