Question

Calculate personal disposable income :	( in Crores)
(i) Net domestic product at factor cost accruing to private sector	800
(ii) National Debt interest	50
(iii) Current transfers from government	70
(iv) Savings of private corporate sector	200
(v) Corporation tax	40
(vi) Direct taxes paid by households	30
(vii) Depreciation	60
(viii) Net factor income from abroad	20

Answer 1

PDI = i + ii + iii + viii – iv – v – vi 

= 800 + 50 +70 + 20 – 200 – 40 – 30 

PDI = 670.