Question

Calculate Net National Product at Market Price and Private Income:

		(Rs in crore)
i	Net Current transaction to abroad	10
ii	Private final consumption expenditure	500
iii	Current transfer to government	30
iv	Net factor income to abroad	20
v	Net exports	(-20)
vi	Net indirect tax	120
vii	National debt interest	70
viii	Net domestic capital formation	80
ix	Income accruing to government	60
x	Government final consumption expenditure	100

Answer 1

GDP_MP = Private final consumption expenditure + Government final consumption expenditure + (Net domestic capital formation + Depreciation) + Net exports

= 500 + 100 + (80 + 0) + (-20)

= Rs 660 crore

NNP_MP = GDPMP- Depreciation-Net factor income to abroad

= 660 - 0 -20

= Rs 640 crore

Private income = NNP_MP - Net indirect tax - Income accruing to government+ Current transfers from government - Net current transfers to abroad+ National debt interest

= 640 - 120 - 60 + 30 - 10 + 70

= Rs 550 crore