Question

Calculate ‘Net Domestic Product at Factor Cost’ and ‘Gross National Disposable Income’:

		(Rs crores_
1	Net current transfers to abroad	15
2	Private final consumption expenditure	800
3	Net imports	(-)20
4	Net domestic capital formation	100
5	Net factor income to abroad	10
6	Depreciation	50
7	Change in stocks	17
8	Net indirect tax	120
9	Government final consumption expenditure	200
10	Exports	30

 

Answer 1

NDP_FC  = = Private final consumption expenditure + Government final consumption expenditure + (Net domestic capital formation + Depreciation) − Net imports − Depreciation − Net indirect taxes

= 800 + 200 + 100 + 50 − (−20) − 50 −120

= Rs 1000 crore

Gross National Disposable Income = NDP_FC − Net factor income to abroad + Net indirect
taxes − Net transfer payments to abroad + Depreciation

= 1000 − 10 + 120 − 15 + 50

= Rs 1145 crore