National Income Accounting

Question

Find out (a) National Income, and (b) Gross National Disposable Income (GNDI) from the following data:    

   

(र in crores)

(i)

Private final consumption expenditure

400

(ii)

Net current transfers from rest of world

-5

(iii)

Indirect tax

65

(iv)

Net domestic capital formation

120

(v)

Govt. final consumption expenditure

100

(vi)

Consumption of fixed capital

20

(vii)

Subsidies

5

(viii)

Exports

30

(ix)

Net factor income from abroad

-10

(x)

Imports

40

Answer

GDP at MP = 400 + 120 + 100 + 20 + 30 - 40 = 630 crores
(a) NI (NNP at FC) = GDPMP - Dep. + NFIA - Indirect tax + Subsidies
= 630 - 20 + (-10) - 65 + 5 = 540 crores
(b) GNDI = GDPMP + NFIA + Net current transfers from ROW
= 630 + (-10) + (-5) = 6,15 crores

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