Instruction
1
Before to proceed to the calculation of national income, you should know that the total income of the country depends not only on the results of internal production activities, but also from income received from abroad and paid abroad. The sum of primary incomes defined on the basis of gross domestic product, represents the amount of goods and services produced by residents, differs from the income received in this country. This difference will be the balance of primary incomes transferred abroad and obtained for her. The total volume of primary income, account for this difference would be the gross national income.
2
Gross national income can be calculated by the following formula:
GNI = GDP + PL + SOT + DC + N + SC, where
GDP – gross domestic product;
PD - balance of primary incomes receivable by residents from abroad and paid to non-residents.
SOT - balance of remuneration received by residents from abroad and paid to non-residents.
DC - balance of property income received by residents from abroad and paid to non-residents.
N - the balance of taxes on production received by residents from abroad and paid to non-residents.
SC - balance subsidies on production received by residents from abroad and paid to non-residents.
GNI = GDP + PL + SOT + DC + N + SC, where
GDP – gross domestic product;
PD - balance of primary incomes receivable by residents from abroad and paid to non-residents.
SOT - balance of remuneration received by residents from abroad and paid to non-residents.
DC - balance of property income received by residents from abroad and paid to non-residents.
N - the balance of taxes on production received by residents from abroad and paid to non-residents.
SC - balance subsidies on production received by residents from abroad and paid to non-residents.
3
Net national income is defined as the difference between gross national income and value of consumption of fixed capital, i.e. depreciation.
4
In addition, there is the gross disposable national income. It is the sum of gross national income and balance transfers from non-residents and devotees abroad. Under the transfers refers to the amount of gratuitous transfers (gifts, donations, humanitarian aid).
5
Net national disposable income is the difference between gross national disposable income consumption of fixed capital. This indicator shows the amount of income that the residents may use for consumer spending or savings.
