Question
Calculate (a) Private income, and (b) Personal disposable income from the following data:
(र in crores)
(i) Income from property and entrepreneurship to govt. adm. deptt. 500
(ii) Savings of non-departmental public enterprises. 100
(iii) Corporation tax 80
(iv) Income from domestic product accruing to private sector 4500
(v) Current transfers from govt. administrative departments 200
(vi) Net factor income from abroad -50
(vii) Direct personal taxes 150
(viii) Indirect tax 220
(ix) Current transfers from rest of world 80
(x) Savings of private corporate sector 500
Solution
(a) Private income = (iv) + (v) + (vi) + (ix)
= 4,500 + 200 + (-50) + 80 = 4,730 crores
(b) PDI = 4,730 (Private income) - 80 - 150 - 500 = 4,000 crores.
