Private Income

Meaning and Measuring of  "PRIVATE INCOME"

PRIVATE INCOME  :-         According to central Statistical Organigetion, Private income is the total of income factor from all sources and current transfers from the government and rest of the world accruing to private sector.

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In other words, private income is the income which goes to the private sector from all sources. It is the income from all sources whether earned (i.e., income payments) or unearned (i.e., transfer payment). It is the sum total of factor incomes and transfer incomes receive by private sector. It also includes net factor income from abroad and interest on national debt.

Private income                   

                                   = income from Net domestic product accruing to the private sector + Net factor income from abroad +  Net transfer payment from government + Transfer payments from rest of the world + interest on national debt.

                                              

                                      = NDP_FC - income from domestic product accruing to the public sector + current transfer + NFIA (Net Factor Income from Abroad).