Question

Calculation National Income and Personal Disposable Income:

		(Rs crores)
1	Rent	100
2	Net current transfers to rest of the world	30
3	Social security contributions by employers	47
4	Mixed income	600
5	Gross domestic capital formation	140
6	Royalty	20
7	Interest	110
8	Compensation of employees	500
9	Net domestic capital formation	120
10	Net factor income from abroad	(-)10
11	Net indirect tax	150
12	Profit	200

 

Answer 1

GNP_MP  = Compensation of employees + Rent + Interest + Royalty + Profit + Mixed income + NFIA + Net indirect taxes + Gross domestic capital formation − Net domestic capital formation

GNP_MP = = 500 + 100 + 110 + 20 + 200 + 600 − 10 + 150 + 140 – 120

= Rs 1690 crore

Net National Disposable Income = GNPMP − (Gross domestic capital formation − Net domestic capital formation) − Net current transfers to the rest of the world

= 1690 − (140 − 120) – 30

= Rs 1640 crore