Question

Find Gross National Product at Market Price and Private Income:

		Rs. in crore
1	Private final consumption expenditure	800
2	Net Current transaction to abroad	20
3	Net factor income to abroad	(-)10
4	Government final consumption expenditure	300
5	Net indirect tax	150
6	Net domestic capital formation	200
7	Current transfer to government	40
8	Depreciation	100
9	Net imports	30
10	Income accruing to government	90
11	National debt interest	50

Answer 1

GDP_MP = Private final consumption expenditure + Government final consumption expenditure + (Net domestic capital formation + depreciation) − Net imports

           = 800 + 300 + (200 + 100) − 30 = 1.370

           = Rs 1.370 crore

GNP_MP = GDP_MP − Net factor income to abroad

           = 1,370 −(−10)

           = Rs 1,380 crore

Private Income = GDP_MP − Net indirect taxes − Depreciation − Income accruing to government − Net factor income to abroad + Current transfers from Government − Net current transfers to abroad + National debt interest

                      = 1.370 − 150 − 100 − 90 −(−10) + 40 − 20 + 50

                      = Rs 1,110 crore