Question

Calculate National Income and Private Income :

		(Rs crores)
(i)	Net imports	5
(ii)	Net domestic capital formation	15
(iii)	Personal income	90
(iv)	National debt interest	10
(v)	Corporate tax	25
(vi)	Government final consumption expenditure	20
(vii)	Net factor income to abroad	(−) 5
(viii)	Net indirect tax	10
(ix)	Undistributed profits	0
(x)	Private final consumption expenditure	100

Answer 1

National Income = Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation - Net imports - Net indirect taxes - Net factor income to abroad
National Income = 100 + 20 + 15 - 5 - 10 - (-5)
National Income = Rs 125 crore
Private Income = Personal Income + Undistributed profits+ Corporate tax
Private Income = 90 + 0 + 25
Private Income = Rs 115 crore