Question
Calculate National Income from the following data:
| S.No. | Particulars | (Rs in crores) |
| (i) | Private final consumption expenditure | 900 |
| (ii) | Profit | 100 |
| (iii) | Government final consumption expenditure | 400 |
| (iv) | Net indirect taxes | 100 |
| (v) | Gross domestic capital formation | 250 |
| (vi) | Change in stock | 50 |
| (vii) | Net factor income from abroad | (-) 40 |
| (viii) | Consumption of fixed capital | 20 |
| (ix) | Net imports | 30 |
Solution
Computation of National Income:
National income or NNPFC = Private final consumption expenditure + government final consumption expenditure – net imports +gross domestic capital formation – consumption of fixed assets – NIT + NFIA
= 900+400-30+250-20-100+(-40)
= Rs 1,360 crore
(Note: Here change in stock is not taken into account as it is a part of the gross Domestic Capital Formation)
