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National Income Accounting

Question
CBSEENEC12013249

Calculate Gross National Disposable Income (GNDI) from the following data:

   

(र in crores)

(i)

Current transfers from government

15

(ii)

Private final consumption expenditure

400

(iii)

Net current transfers from ROW

20

(iv)

Govt. final consumption expenditure

100

(v)

Net factor income from abroad

(-)10

(vi)

Net domestic capital formation

80

(vii)

Consumption of fixed capital

50

(viii)

Net exports

40

(ix)

Net indirect taxes

60

Solution

GDP at MP (Exp. method) = 400 + 100 + 80 + 50 + 40 = 670
GNDI = GDP at MP + NFIA + Net current transfers from ROW
= 670 + (- 10) + 20 = 680 crores.