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Calculate Net National Disposable Income from the Following Data - Economics

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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
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Solution

To calculate Net National Disposable Income

We know

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

NDPFC = GDPMP − Consumption of fixed capital − NIT

NDPFC = 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

Concept: National Disposable Income (Gross and Net)
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