Question

Calculate National Income and Personal Disposable Income :

	(Rs. in crore)
(i) Corporation Tax	100
(ii) Private Final Consumption Expenditure	900
(iii) Personal Income Tax	120
(iv) Government Final Consumption Expenditure	200
(v) Undistributed Profits	50
(vi) Change in Stocks	(-) 20
(vii) Net Domestic Fixed Capital Formation	120
(viii) Net Imports	10
(ix) Net Indirect Tax	150
(x) Net Factor Income from Abroad	(-) 10
(xi) Private Income	1,000

Answer 1

GDP_MP= Private Final Consumption Expenditure +Government Final Consumption Expenditure + (Net Domestic Fixed Capital Formation + Depreciation Change in Stock) - Net ImPorts

=900 + 200 + [120 + 0 + (-20)] -10

= 1,190

NNP_FC = GDP_MP + Net Factor Income from Abroad - Net Indirect Tax - Depreciation

= 1,790 + (-10) - 150- 0 = 1,030

Hence, National Income =Rs.1,030 crore

Now; Personai Disposable Income

= Private Income - Undistributed Profits - Corporate Tax - Personal Direct Taxes

= 1,000 - 50 - 100 -120 = 730

Thus, Personal Disposable Incorne = Rs.730 crore