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National Income Accounting

Question
CBSEENEC12013307

Calculate (a) NNP at FC, and (b) Gross National Disposable Income from the following.
   

(र in crore)

(i)

Saving of non-departmental enterprises

50

(ii)

Income from property and entrepreneurship to govt. departments

70

(iii)

Personal tax

90

(iv)

National debit interest

20

(v)

Retained earnings of private corporate sector

10

(vi)

Current transfer payments by governments

40

(vii)

Consumption of fixed capital

60

(viii)

Corporation tax

30

(ix)

Net indirect tax

80

(x)

Net current transfers from rest of the world

(-) 10

(xi)

Personal disposable income

1000

Solution

(a)    NNP at FC = (xi) + (iii) + (v) + (viii) - Transfer income (iv + x + vi) + Government sector income (ii + i)
                          = 1000 + 90 + 10 + 30 - {20 + (- 10) + 40} + (70 + 50)
                          = 1130 - 50 + 120 = 1200 crore
(b)    GNDI = NNP at FC + Net indirect tax + Consumption of fixed capital + Net current transfer from ROW
                   = 1200 + 80 + 60 + (- 10)
                   = 1330 crore.