Question

Calculate (a) national income (b) net national income disposable income:

		(Rs. in crores)
1	Net factor income to abroad	(-) 50
2	Net indirect taxes	800
3	Net current transfers from rest of the word	100
4	Net imports	200
5	Private final consumption expenditure	5000
6	Government final consumption expenditure	3000
7	Gross domestic capital formation	1000
8	Consumption of fixed capital	150
9	Change in stock	(-) 50
10	Mixed income	4000
11	Scholarship to students	80

 

Answer 1

NNP_Fc = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation + Change in Stock - Net Imports - Depreciation - Net Factor Income to Abroad - Net Indirect Taxes

NNP_Fc = 5000 + 3000 + 1000 - 50 - 200 -150 - (-50) - 800

NNFFc = 7850

Net National Disposable Income = NNP_Fc + Net Indirect Taxes + Net current transfers from the rest of the world

Net National Disposable Income = 7850 + 800 +100 = 8750