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Calculate National Income and Gross National Disposable Income from the Following: - Economics

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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

 

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Solution

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

= 660 + 20 + 100 − (−5)

= Rs 785 crore

Concept: Aggregates Related to National Income - Personal Disposable Income
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