Calculate National Income by Income and expenditure method Government final consumption expenditure ₹ 50
Calculate National Income by Income and expenditure method.
| Particulars | ₹ in Crores |
| (i) Government final consumption expenditure | 50 |
| (ii) Rent | 150 |
| (iii) Opening Stock | 20 |
| (iv) Interest | 80 |
| (v) Profit | 70 |
| (vi) Private Final Consumption Expenditure | 480 |
| (vii) Gross Fixed Capital Formation | 90 |
| (viii) Closing Stock | 35 |
| (ix) Net exports | (-) 5 |
| (x) Net indirect taxes | 60 |
| (xi) Comensation of employees | 200 |
| (xii) Consumption of fixed Capital | 20 |
| (xiii) Mixed income of self employed | 50 |
| (xiv) Net factor income from abroad | 20 |
Ans: National Income = ₹ 570 Crores
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of National Income by Income Method
NDP at FC = Compensation of Employees + Mixed Income + Rent + Interest + Profit
NDP at FC = ₹ 200 + ₹ 50 + ₹ 150 + ₹ 80 + ₹ 70
NDP at FC = ₹ 550
NNP at FC ( National Income) = NDP at FC + Net Factor Income From abroad
NNP at FC (National Income) = ₹ 550 + ₹ 20
NNP at FC (National Income) = ₹ 570 Crores
Calculation of National Income by Expenditure Method
GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross fixed Capital Formation + (Closing – Opening Stock) + Net Exports
GDP at MP = ₹ 480 + ₹ 50 + ₹ 90 + (₹ 35 – ₹ 20) + ₹ (-) 5
GDP at MP = ₹ 630 Crores
NDP at FC (National Income) = GDP at MP – Consumption of fixed capital + Net Factor income from abroad – Net indirect taxes
NDP at FC (National Income) = ₹ 630 Crores – ₹ 20 + ₹ 20 – ₹ 60
NDP at FC (Natioal Income) = ₹ 570 Crores
Anurag Pathak Changed status to publish November 10, 2023
