Question

Find Net Domestic Product at Factor Cost and Personal Income :

	(Rs. in crore)
(i) Rent	200
(ii) Net Current Transfers to Abroad	10
(iii) National Debt Interest	60
(iv) Corporate Tax	100
(v) Compensation of Employees	900
(vi) Current Transfers from Government	150
(vii) Interest	400
(viii) Undistributed Prof	50
(ix) Dividend	250
(x) Net Factor Income to Abroad	(-)10
(xi) Income Accruing to Government	120

Answer 1

NDP_FC= COE + OS + MI

= (v) + [(i) + (vii) + (viii) + (ix) + (iv)] + 0

= 900 + 200 + 400 + 50 + 250 + 100

=Rs.1,900 crore

Private Income = NDP_FC - Income accruing to Govetnment - NFIA + Current transfer by Government - Net current transfer to Abroad + National Debt Interest

= NDP_FC - (xi) - (x) + (vi) - (ii) + (iii)

= 1,900 - 120 - (- 10) + 150 - 10 +60

=Rs. 1,990 crore

Personal Income: Private Income - Corporate tax-Undistributed profit

=Private Income -(iv)-(iii)

=1,990-100-50

=Rs. 1840 crore