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 |
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Solution
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
Concept: Aggregates related to National Income - Private Income
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