What is the difference between personal income and national income?
What is the difference between personal income and national income?
Following points may be noted differentiating personal income from national income:
(i) Personal income is a concept related to the receipts of income, while national income is a concept related to the generation of income.
(ii) Income from domestic product accruing to the government constitutes a part of national income, but not of personal income.
(iii) National income comprises factor incomes only, while personal income includes both factor incomes as well as transfer payments.
(iv) Corporate saving as well as corporation tax flow out of national income but are not the components of personal income.
(v) Interest on national debt is a component of personal income, but not of national income.
Following points may be noted differentiating personal income from national income:
(i) Personal income is a concept related to the receipts of income, while national income is a concept related to the generation of income.
(ii) Income from domestic product accruing to the government constitutes a part of national income, but not of personal income.
(iii) National income comprises factor incomes only, while personal income includes both factor incomes as well as transfer payments.
(iv) Corporate saving as well as corporation tax flow out of national income but are not the components of personal income.
(v) Interest on national debt is a component of personal income, but not of national income.
