Question

From the Following data calculate Personal Disposable Income :

	(Rs. in crore)
(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 tax paid by households	30
(vii) Depreciation	60
(viii) Net Current Transfers to Abroad	20
(ix) Net Factor Income paid to Abroad	(-) 10

Answer 1

Private Income 

=NNP_FC accruring to private sector + Net current transfer from ROW + Current transfers from govt. + National debt interest - NFIA

800+20+70+50-(-10)

=Rs.950

Personal Income 

= Private income - Corporation tax - Undistributed profit

=950-40-200

=Rs.710

Personal Disposable Income 

= Personal income - Personal direct taxes - Fees and Fines.

=710-30-NIL

= Rs. 680 crore.