National Income Accounting

Question

From the following data calculate (a) Private income, (b) Personal income, and (c) Personal disposable income.
   

(र in crores)

(i)

Income from property and entrepreneurship accruing to government administrative departments

100

(ii)

Savings of non-departmental enterprises

80

(iii)

Factor income from NDP accruing to private sector

500

(iv)

Corporation tax

30

(v)

Savings of private corporate sector net of retained earnings of foreign companies

65

(vi)

Direct taxes paid by households

20

(vii)

Current transfers from Govt, administrative departments

10

(viii)

Current transfers from rest of the world

20

(ix)

Factor income to abroad

15

(x)

Operating surplus

150

(xi)

Factor income from abroad

5

Answer

(a)    Private Income = (iii) + NFIA (ix - xi) + (vii) + (viii)
                                 = 500 + 5 - 15 + 10 + 20 = 520 crores
(b)    Personal Income = Private income - (iv) - (v)= 520 - 30 - 65 = 425 crores
(c)    Personal Disposable Income = 425 - 20 = 405 crores

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