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Private income is the total of factor incomes and transfer incomes received from all sources by private sector (private enterprise and households) within and outside the country.
The formula for Private Income is
Private Income = Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world
The concept of private income is broader than the personal income because private income consists of personal income + profit tax + undistributed profit.
