From the following data (Rs crore), calculate Private Income:
| Item | Amount |
|---|---|
| Factor income from net domestic product accruing to the private sector | 4,000 |
| National debt interest | 200 |
| Net factor income from abroad | (−) 50 |
| Current transfers from government | 300 |
| Other net transfers from the rest of the world | 100 |
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs 4,550 crore
Given:
Factor income from NDP accruing to the private sector = 4,000
National debt interest = 200
NFIA = (−) 50
Current transfers from government = 300
Other net transfers from the rest of the world = 100
Private income adds all five items, with NFIA taken with its sign.
Private income = 4,000 + 200 + (−50) + 300 + 100 = Rs 4,550 crore
Rs 4,650 crore takes NFIA as +50; a negative NFIA lowers private income.
Note: The box on disposable income and private income sits beside the main text, yet it has formulas of its own. Read every box to its last line.
NCERT (2026-27): “National Disposable Income and Private Income … Private Income = Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world.” |