Question

From the following data calculate personal disposable income:

$\begin{array}{ccc}& & \text{(Rs in Crores)}\\ \text{(i)}& \text{Net domestic product at factor cost accruing to private sector}& 800\\ \text{(ii)}& \text{National Debt interest}& 50\\ \text{(iii)}& \text{Current transfers from government}& 70\\ \text{(iv)}& \text{Savings of private corporate sector}& 200\\ \text{(v)}& \text{Corporation tax}& 40\\ \text{(vi)}& \text{Direct taxes paid by households}& 30\\ \text{(vii)}& \text{Depreciation}& 60\\ \text{(viii)}& \text{Net factor income from abroad}& 20\\ \text{(ix)}& \text{Net current transfers to abroad}& (-)10\end{array}$

Answer 1

Personal Disposable Income.

$\begin{array}{cccccc}=& \text{(i)}& {\text{NDP}}_{\text{FC}}\text{accruing to private sector}& & & 800\\ (+)& \text{(ii)}& \text{National Debt interest}& & & (+)50\\ (+)& \text{(iii)}& \text{Current transfers from government}& & & (+)70\\ (+)& \text{(viii)}& \text{Net factor income from abroad}& & & (+)20\\ (-)& \text{(ix)}& \text{Net current transfers to abroad}& & & (-)(-10)\\ (-)& \text{(v)}& \text{Corporation tax}& & & (-)40\\ (-)& \text{(iv)}& \text{Savings of private corporate sector}& & & (-)200\\ (-)& \text{(vi)}& \text{Direct taxes paid by households}& & & \underset{–}{(-)30}\\ & & & & & \underset{–}{680}\end{array}$