Question
Calculate (a) Private Income, and (b) Personal Disposable Income (PDI) from the following data:
(र in crores)
(i) Savings of private corporate sector 500
(ii) Savings of non-departmental public enterprises 200
(iii) Capital transfers from rest of the world 50
(iv) Current transfers from govt. administrative departments 100
(v) Corporation tax 150
(vi) Income from domestic product accruing to private sector 3500
(vii) Net indirect taxes 300
(viii) Net factor income from abroad (-) 30
(ix) Current transfers from rest of the world 40
(x) Direct personal taxes 110
Solution
(a) Private income = Private sector income + NFIA + All transfers
= 3500 + (- 30) + (40 + 100) = 3610 crores
(b) PDI = Private Income - Corporation tax - Savings of corporate sector - Personal taxes
= 3610 - 150 - 500 - 110
= 2850 crores