Question

Find national income and private income:

		(Rs crore)
(i)	Rent	200
(ii)	Net current transfer to abroad	10
(iii)	National debt interest	60
(iv)	Corporate tax	100
(v)	Composition of employees	900
(vi)	Current transfers from government	150
(vii)	Interest	400
(viii)	Interest	50
(ix)	Undistributed profits	250
(x)	Net factor income to abroad	(-)10
(xi)	Income accruing to government	120

Answer 1

NDP_FC = Rent + Corporate tax + Compensation of employees + Interest + Undistributed profits + Dividend

=200 + 100 + 900 +400 + 50 + 250 = Rs 1,900 crore

Personal Income =NDP_FC – Income accruing to government − Net fame income to abroad + National debt interest + Current transfer by government − Net current transfers to abroad − Corporate tax − Undistributed profits

= 1,900 − 120 − (−10) + 60 + 150 − 10 −100 − 50 = Rs 1,840 crore