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