Question

From the following data, calculate Net Value Added at Factor Cost (NVA_FC):

S. No.	Particulars	Amount in (₹ Crores)
(i)	Price per unit of output	20
(ii)	Output sold (units)	1250 units
(iii)	Excise duty	5,000
(iv)	Consumption of fixed capital	1,000
(v)	Change in stock	(-) 500
(vi)	Single use producer goods	6,000

Answer 1

GDP at MP = Value of Production - Intermediate Consumption

= (24,500 - 6,000) crores

= (18, 500) crores

NDP at FC = GDP_MP - Consumption of fixed capital - Net Indirect taxes

= (18,500 - 1,000 - 5,000) crores

= 12,500 crores

Working Notes:

Single use producer goods = Intermediate consumption

Net Indirect Taxes = Indirect taxes - subsidy

= 5,000 - 0 = 5,000 crores

Excise duty is an indirect tax.

Value of Production = ( price x quantity) + change in stock

= (20 x 1250) + (- 500)

= (25,000 - 500) crores

= (24,500) crores