Question

Calculate net national disposable income from the following data:-

S.No.	Particulars	Rs. in crores
(i)	Gross domestic product at market price	2000
(ii)	Net current transfers to rest of the world	(-)200
(iii)	Net indirect taxes	150
(iv)	Net factor income to abroad	60
(v)	National debt interest	70
(vi)	Consumption of fixed capital	200
(vii)	Current transfers from Government	150

Answer 1

To calculate Net National Disposable Income

We know

NNDP = NDP_FC + NIT − Net factor income to abroad − Net current transfers to rest of the world

NDP_FC = GDP_MP − Consumption of fixed capital − NIT

NDP_FC = 2,000 − 200 − 150 = 1,650x

By substituting this value in the given formula, we get

NNDP = 1,650 + 150 − 60 − (−200)

NNDP = 1,940 crore