Question

Calculate the 'National Income' and 'Private Income' :

		(Rs in crores)
1	Rent	200
2	Net factor income to abroad	10
3	National debt interest	15
4	Wages and salaries	700
5	Current transfers from government	10
6	Undistributed profit	20
7	Corporation tax	30
8	Interest	150
9	Social security contributions by employers	100
10	Net domestic product accruing to government	250
11	Net current transfers to rest of the world	5
12	Dividends	50

 

Answer 1

National Income = Wages and salaries + Social security contributions by employers + Rent + Interest + Dividends + Corporation tax + Undistributed profits - Net factor income to abroad

NNP_FC = 700 + 100 + 200 + 150 + 50 + 30 + 20 − 10

= 1240 crore

Private Income = National income − Net domestic product accruing to government + Current transfer from government − Net current transfers to the rest of the world + National debt interest

= 1240 − 250 + 10 − 5 +

= 1010 crore