Question
Calculate from the following data: (a) Private income, (b) Personal income, and (c) Personal disposable income.
(र in crores)
(i) Factor income from NDP accruing to private sector 300
(ii) Income from entrepreneurship and property accruing to government
administrative departments 70
(iii) Savings of non-departmental enterprises 60
(iv) Factor income from abroad 20
(v) Consumption of fixed capital 35
(vi) Current transfers from rest of the world 15
(vii) Corporation tax 25
(viii) Factor income to abroad 30
(ix) Current transfers from govt, administrative departments 40
(x) Direct taxes paid by households 20
(xi) National debt interest 5
(xii) Savings of private corporate sector 80
Solution
(a) Private Income = 300 + (20 - 30) + 15 + 40 + 5 = 350 crores.
(b) Personal Income = 350 - 25 - 80 = 245 crores.
(c) Personal Disposable Income = 245 - 20 = 225 crores