National Income Accounting

Question

Calculate (a) National Income, and (b) Gross National Disposable Income from the following:   

   

(र crore)

(i)

Net current transfers to the rest of world

(-) 5

(ii)

Private final consumption expenditure

500

(iii)

Consumption of fixed capital

20

(iv)

Net factor income to abroad

(-) 10

(v)

Government final consumption expenditure

200

(vi)

Net indirect tax

100

(vii)

Net domestic fixed capital formation

120

(viii)

Net imports

30

(ix)

Change in stocks

(-) 20

Answer

(a) GDP at MP (Expenditure method)
= 500 + 200 + {120 + 20 + (- 20)} + (- 30) = 790
National income (NNP at FC) = 790 - 20 - 100 - (- 10) = 670 + 10 = 680 crore
(b)    GNDI = NNP at FC + dep + NIT - Net current transfers to ROW
= 680 + 20 + 100 - (- 5) = 800 + 5 = 805 crore.

Sponsor Area