Different concept of national income.

The main concept of national income can be explained as follows :

1. Gross Domestic products (GDP) :According to word bank (WDR-1995)-"GDP measure the total output of goods and services for final use produced by resident and non-residents.regardless of the allocation of natural resources.The sum of goods and services produced within the boundary of a country during a year is called GDP.Therefor,it consist of the value added from agriculture,forestry,hunting and fishing (A),value added from industry which consist of mineral,construction ,electricity,water,gas and manufacturing industry (I) and value added from services.
2. Gross national production (GNP)-GNP is the most widely used concept,It is broader than GDP.The sum of final goods and service produced during a year is called GNP.The money value of goods and service produced is called gross national income. According to word bank (WDR-1995) -"GNP measure the total domestic and foreign value added cloned by resident.It comprise GDP plus net income form aboard which is the income residents receive from aboard from factor service (labour and capital) less similar payments made to non-resident who contributed to the domestic economy".
   
3. Net national product (NNP) :The net production of goods and services is called net national product (NNP).The capital goods like plant,equipments wear out and their value fall while used in production.This wear-out or fall in value is known as depreciation or capital consumption allowance are experience are subtract from GNP to obtain net national product.
4. National income (NI) :The national income is called national income at factor cost.Hence,national income is called is calculated the basic of the remuneration of factors production.Hence,the sum of the income received by factors of production in the form of rent,interest,wages and profit is called national income.
   
5. Personal income :Growing from NI to personal income (PI) we must subs tract factor incomes that do not get passed on to persons and added items that enter PI but are no in NI.Corporate income taxes are not received by person. Undistributed profits or retained earning kept for future contingencies also do not go to persons.Similarly,social security contribution by both employer and employer such as provident fund.pension fund are also not available to person.Therefor,these items should be subs tract from NI. On the other hand,government transfer payment,such as unemployment allowance,disable allowance,old-agree allowance,window allowance are not payment for current output,but are available to persons without any work.similarly,business transfer payment are also available to person.Therefor,these items should be added to NI.Hence,the personal income is the income actually received by individuals and household during a year.
6. Disposable income :The income left after paying direct taxes from personal income is called disposable income (DI) or (DP) is personal income taxes.Because all the income earned by individuals and household are not available for consumption expenditure.The disposable income is expressed as follows:

=personal income -personal tax payments.
for example,as shown.
DI=Rs.3485 million-Rs.2971.
DI is divided into personal saving (S) and consumer expenditure (C).Generally,people save the amount left after consumption.Hence,the disposable income is also expressed as:
DI=C+I