NATIONAL INCOME MEANS

The aggregate monetary value of good and services that the country produces for the given fiscal year is known as national income. All forms of payment incurred like rent, interest, profit and wages come under the umbrella of national income.

The calculation of national income is necessary to mark the level of progress the country is making. The modern definition of national income involves Gross National Product (GNP) and Gross Domestic Product (GDP). By determining national income, one can know the per capita income, plan for further economic growth of the country, estimate inflation or deflation and measure growth. As a result, national income is important.