Question

Calculate National Income and Gross National Disposable Income from the following: 

S. No.	Items	(Rs crore)
(i)	Net current transfers to the rest of the world	(–) 5
(ii)	Private final consumption expenditure	500
(iii)	Consumption of fixed capital	20
(iv)	Net factor income to abroad	(–) 10
(v)	Government final consumption expenditure	200
(vi)	Net indirect tax	100
(vii)	Net domestic fixed capital formation	120
(viii)	Net imports	30
(ix)	Change in stocks	(–) 20

 

Answer 1

NNP_FC = Private Final Consumption Expenditure + Government Final Consumption Expenditure + (Net Domestic Fixed Capital Formation + Change in Stock) − Net Imports − Net Indirect Taxes − Net Factor Income to Abroad − Consumption of Fixed Capital

= 500 + 200 + 120 + (−20) − 30 − 100 − (−10) −20

= Rs 660 crore

GNDI = NNP_FC + Consumption of Fixed Capital + Net Indirect Taxes −Net Current transfers to Rest of the World

= 660 + 20 + 100 − (−5)

= Rs 785 crore