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National Income Accounting
Calculate national income and gross national disposable income from the following:
(Rs.)
1. Net current transfers to abroad (-) 15
2. Private final consumption expenditure 600
3. Subsidies 20
4. Government final consumption expenditure 100
5. Indirect tax 120
6. Net imports 20
7. Consumption of fixed capital 35
8. Net change in stocks (-10)
9. Net factor income to abroad 5
10. Net domestic capital formation 110
Computation of National Income:
National Income = Private Final Consumption Expenditure + Government Final Consumption Expenditure - Net Imports + (Net Domestic Capital Formation + Depreciation) - Depreciation - (Indirect Taxes - Subsidies) - Factor Income to Abroad
or, National Income (NNPFC)
= 600 + 100 + (-20) + (110 + 35) - 35 - (120 - 20) -5 = Rs 685
Computation of Gross National Disposable Income:
Gross National Disposable Income = NNPFC + net Indirect Taxes + consumption of fixed capital – net current transfer to abroad
= 685 + (120-20)+ 35 –(-15)
= Rs 835
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