Question
There are only two producing sectors A and B in an economy. Calculate: (a) Gross value added at MP by each sector, (b) National income.
(र in crores)
(i) Net factor income from abroad 20
(ii) Sales by A 1000
(iii) Sales by B 2000
(iv) Change in stock of B -200
(v) Closing stock of A 50
(vi) Opening stock of A 100
(vii) Consumption of fixed capital by A and B 180
(viii) Indirect taxes paid by A and B 120
(ix) Purchase of raw material by A 500
(x) Purchase of raw material by B 600
(xi) Exports by B 70
Solution
(a) Gross value added by sector A = 1000 + 50 - 100 - 500 = 450
Gross value added by sector B = 2000 - 200 - 600 = 1200
(Sales include exports also)
Total = 450 + 1200 = 1650 crores
(b) National income (NNPFC) = 1650 - Indirect tax - Dep. + NFIA
= 1650 - 120 - 180 + 20 = 1370 crores