Question

Calculate National Income and Personal Disposable Income

$\begin{array}{ccc}& & \text{(Rs in Crores)}\\ \text{(i)}& \text{Personal tax}& 80\\ \text{(ii)}& \text{Private final consumption expenditure}& 600\\ \text{(iii)}& \text{Undistributed profits}& 30\\ \text{(iv)}& \text{Private income}& 650\\ \text{(v)}& \text{Government final consumption expenditure}& 100\\ \text{(vi)}& \text{Corporate tax}& 50\\ \text{(vii)}& \text{Net domestic fixed capital formation}& 70\\ \text{(viii)}& \text{Net indirect tax}& 60\\ \text{(ix)}& \text{Depreciation}& 14\\ \text{(x)}& \text{Change in stocks}& (-)10\\ \text{(xi)}& \text{Net imports}& 20\\ \text{(xii)}& \text{Net factor income to abroad}& 10\end{array}$

Answer 1

National Income

= Private final consumption expenditure + Government final consumption expenditure income to abroad + Net domestic fixed capital formation + Change in stocks - Net imports - Net tax for income to abroad - Net indirect tax.

= (ii) + (v) + (vii) + (x) + (xi) - (xii) - (viii)

= 600 + 100 + 70 + (-10) - 20 - 10 - 60 = Rs 670 crores

Personal Disposable Income

= Private Income - Undistributed profits - Corporate tax - Personal tax

= (iv) - (iii) - (vi) - (i)

= 650 - 30 - 50 - 80 = Rs 490 crores.