Question
Calculate (a) NDP at FC and (b) Private income from the following.
(र crore)
(i) Domestic product accruing to govt. 300
(ii) Wages and Salaries 1000
(iii) Net current transfer to abroad (-) 20
(iv) Rent 100
(v) Interest paid by production units 130
(vi) National debt interest 30
(vii) Corporation tax 50
(viii) Current transfers by government 40
(ix) Contribution to social security schemes by employers. 200
(x) Dividends 100
(xi) Undistributed profits 20
(xii) Net factor income to road 0
Solution
(i) NDP at FC = (ii) + (iv) + (v) + (vii) + (ix) + (x) + (xi)
= 1000 + 100 + 130 + 50 + 200 + 100 + 20 = 1600 crore.
(ii) Private income = NDP at FC - (i) - (iii) + (vi) + (viii) + (xii)
= 1600 - 300 - (-20) + 30 + 40 + (-0) = र 1390 crore.