FORMULAES

CLASS: XII Economics National Income & Related Aggregates P.No.: 1

1. Value of output = Sales + Change in stocks
Change in Stocks = Closing Stock – Opening Stock

2. Gross Value added at mp = Value of output – Intermediate consumption (Raw material,

Expenses on fuel, electricity, non factors inputs etc.)

3. Net value added at mp = Gvamp – Depreciation Or Consumption of Fixed Capital

4. Net value added at factor cost = Nvamp - NIT

Note:- NIT is the difference between indirect taxes and subsidy.
Example of:
Indirect taxes Direct Tax
Sales Tax Income Tax
Excise Duty Wealth Tax
Entertainment tax, etc. Corporate tax

5. Find out Given Taken

Domestic National - NFIA
National Domestic + NFIA
Net Gross - Dep. / CFC
Gross Net + Dep
FC MP - NIT
MP FC + NIT

6. Value of ouput in General Government Sector = Value of Services Sold + Value of Services
supplied OR
= Sales to Public + Supply to Public

7. Net value added in the General Government sector = Value of output – intermediate consumption
– Depreciation or CFC
Note: Nva in the General government is always equal to compesation of Employees.
Nva = COE in general government

8. GROSS DOMESTIC CAPITAL FORMATION

Gross domestic Change in stocks Net acquisition

fixed cap. formation of valuables

New assets Net Purchase Closing less Opening Acquisition less Disposals
Of second hand stock stock
Old assets

9. National Income or NNPfc = NDPfc + NFIA

OR = COE + OS + MISE + NFIA
 OR = Domestic factor Income + NFIA
CLASS: XII ECONOMICS FORMULAES P.NO.: 2
10. Nvafc / NDPfc = NNPfc – NFIA
OR COE + OS + MISE

11. Income from domestic Product accruing to Pvt. Sector = NDPFC

– Income from govt.administrative deptt.
– surplus of non-departmental enterprises

12. Private Income = Income from domestic product accuring to Pvt. sector + NFIA
+ Current transfer from govt. + Net current transfers from ROW
+ National debt interest.

13. Personal Income = Private Income - Corporate savings or undistributed Profits – Corporate tax.

14. Personal Disposable Income = Personal Income – Personal Direct Taxes – Miscellanous receipts of
the govt. (Fees. Fines or penalties etc.) or PDY = Consumption + Saving.

15. Net National Disposable Income = NNDY = National Income + NIT+ Net Current transfers from
Row.
16. D.F.I / NDpFC / NVaFC

COE OS MISE

Wages & Social Rent Interest Profit Royalty

Salaries Security
Contribution Dividend Corporate Undistributed
Tax Profit

17. COE

Wages & Salaries Wages in kind Employers contribution

in cash to social security schemes
1. Basic Pay 1. free accommodation 1. Life Insurance
2. Dearness Allowance 2. free ration 2. Retirement Pension
3. Bonus 3. free conveyance facilities 3. Provident fund etc.
4. Commission to sales staff 4. free medical facilities
5. Gratuities 5. Recreation & Holiday facility
6. free uniform
Note: In India COE also include pay & allowance of President, Governor, Ministers & Prime Ministers.
Terms not to be included in COE:-
1. Travel allowance
2. Payment to resident employee working abroad
3. Employees contribution to social securities schemes
4. Interest free loans
5. Compensation received by an injured worker from the insurance company.
 6. Income from lottery
CLASS: XII ECONOMICS FORMULAES P.NO.: 3

OR
COE = Value of output - Intermediate con. - Depreciation / CFC - NIT - Operating surplus - MISE

18. NNPFC or NI
NATIONAL INCOME

PRODUCT INCOME EXPENDITURE

1. NVa is primary sector
2. NVa is secondarysector
3. NVa is tertiary sector
4. N.F.I.A.
1. COE 1. Private final consumption expenditure
2. OS 2. Government final cons.exp.
3. MISE 3. Gross domestic fixed cap. Formation
4. N.F.I.A. 4. Net acquisition of valuables
(i.e.) acqni – disposals.
5. Change in Stocks
6. Net export of goods & services
Ex. – In.

19. OPERATING SURPLUS

Gross O.S. (1) Net O.S.

NVAfc– COE - MISE Rent Interest Profit Royalty

Dividend Corporate tax Undistributed

profit.
OR
Net = Gross – (Rent + interest)

20. Private Final Consumption Ex.

Private final consumption Expenditure in the domestic market + Direct purchases in domestic market
by non-resident households – Direct purchases in domestic market by extra terrtorial bodies -net sale
of second have goods – sale of scraps & wastes

21. Government final consumption exp.

COE + I.C + C.F.C
OR
COE + Govt. Exp. on purchases of goods & servicies in Domestic Market + Govt. purchases from
abroad + C.F.C