Question

Calculate (i) GDPmp; (ii) Personal income; (iii) personal disposable income

Heads	Amount in Rs. crores
1. National income	64500
2. Net indirect taxes	5500
3. Corporate taxes	1200
4. Part of N.I accuring to government	1550
5. Net factor income from abroad	–150
6. Depreciation	7250
7. Interest on national debt	450
8. Undistributed Corporate profits	2500
9. Personal taxes	1650
10. Net current transfers from abroad	–200
11. Transfer payment	1600

Answer 1

(i) GDP_mp = N.I. + Net indirect taxes + depreciation – net factor income from abroad 

= 64500 + 5500 +7250 – (–150) 

= Rs. 77400 crores.

(ii) Personal income = NI – corporate taxes – part of national income arising to government sector + interest on national debt – undistributed profit + current transfers from abroad + transfer payments by govt. 

= 64500 – 1200 – 1550 + 450 – 2500 + (–200) + 1600 

= Rs. 61100 crores.

(iii) Personal disposable income = Personal income – Direct personal taxes 

= 61100 – 1650 = Rs. 59450 crores.