Question

Find National Income and Personal Disposable Income:

		(Rs crore)
(i)	Undistributed profits	70
(ii)	Gross National Disposable Income	1,000
(iii)	Net current transfers to abroad	20
(iv)	Consumption of fixed capital	100
(v)	Corporation tax	200
(vi)	Indirect tax	250
(vii)	Current transfers from government	50
(viii)	Subsidies	60
(ix)	Private income	800
(x)	Personal tax	150

 

Answer 1

Gross National Disposable Income = GNP_MP+ Net Current Transfers from abroad (or - Net Current Transfers to abroad) or, 1,000 = GNP_MP- 20 = 1020

= GNP_MP- Depredation - (Indirect Taxes - Subsidies)

= 1020 -100 - (250 - 60) = 730

= Rs 730 crore

Personal Disposable Income = Private Income - Undistributed Profits (or Retained Earnings) - Corporation Tax - Personal Tax Personal Disposable Income

= 800 - 70 - 200 -150

= Rs 380 crore