Giving reason, explain how should the following be treated while estimating National Income:

Giving reason, explain how should the following be treated while estimating National Income:
(i) Expenditure on free services provided by government.
(ii) Payment of interest by a government firm.

(i) Expenditure on free services provided by government should be included in the estimation of National Income, as it is a final expenditure of the government.
(ii) Payment of interest by a government firm should not be included in the estimation of National Income, as it is a transfer payment.