Question

Calculate (a) net national product at the market price and (b) gross national disposable income:

		(Rs in crores)
1	Gross domestic fixed capital formation	400
2	Private final consumption expenditure	8,000
3	Government final consumption expenditure	3,000
4	Change in stock	50
5	Consumption of fixed capital	40
6	Net indirect taxes	100
7	Net exports	(-) 60
8	Net factor income to abroad	(-) 80
9	Net current transfers from abroad	100
10	Dividend	100

 

Answer 1

1) NNP_MP= Private final consumption expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + Change in stock + Net exports - Consumption of fixed capital – Net factor income abroad

= 8,000 + 13,000 + 400 + 50 + (- 60) -40 - (- 80)

= Rs 11,430 crores

2) Gross National Disposable Income = NNP_MP +Net current transfers from abroad

= 11,430 + 100

= Rs 11,530 crores