Question

Calculate (i) GNP at market prices; (ii) private income; (iii) personal income.

Heads	Amount in Rs. crores
1. GDPfc	370
2. Income from domestic product accruing to private sector	290
3. Net current transfers from abroad	50
4. Net indirect taxes	60
5. Net other current transfers from abroad	35
6. Net factor income from abroad	–30
7. Saving of the private corporate sector	25
8. Corporation tax	5

Answer 1

(i) GNP_mp = (1) + (4) + (6) = 370 + 60 + (–30) 

= Rs. 400 crores.

(ii) Private income = (2) + (3) + (5) + (6) 

= 290 + 50 + 35 + (–30) = Rs. 345 crores.

(iii) Personal income = Private income – (7) – (8) 

= 345 – 25 – 5 = Rs. 315 crores.