UPSC Economy GS 3
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📍ESTIMATION OF NATIONAL INCOME IN INDIA
🔸In 1868, Dadabhai Naoroji wrote a book ‘Poverty and Un British Rule in India’. It was the first attempt at the calculation of National Income.
🔸The first person to estimate National Income scientifically was Dr V. K. R. V. Rao who estimated national income for the period 1925-29.
🔸After Independence National Income committee was formed in 1949 under the chairmanship of P.C. Mahalanobis.
🔸After some years Central Statistical Organisation (CSO) was formed.
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📍DISPOSABLE PERSONAL INCOME
🔸Income available to individuals after deducting direct taxes.
🔸Disposable Personal Income = Personal Income – Direct Taxes
Real Income and Nominal Income-
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📍PERSONAL INCOME
🔸It is the sum of all the income received by the people of the country in one year.
Personal Income = National Income + Transfer payments – Undisclosed profits of corporate + Payment for social security provisions
🔸Transfer Payments are the payments that are not against any productive work. (Example- Old Age Pension, Unemployment compensation etc.)
🔸Social Security Provisions- Payment made by employees towards PF, Insurance etc.
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