Calculate National Income by Income and Expenditure Method Rent ₹ 1,500 Net Factor Income from Abroad ₹ 50
Calculate National Income by Income and Expenditure Method.
| Particulars | ₹ in Crores |
| (i) Rent | 1,500 |
| (ii) Net Factor Income from Abroad | 50 |
| (iii) Wages and Salaries | 25,000 |
| (iv) Indirect tax | 1,000 |
| (v) Government final consumption expenditure | 11,200 |
| (vi) Subsidies | 300 |
| (vii) Royalty | 200 |
| (viii) Net Exports | (-) 200 |
| (ix) Interest | 6,400 |
| (x) Corporate tax | 200 |
| (xi) Profit after tax | 4,000 |
| (xii) Household final consumption expenditure | 26,000 |
| (xiii) Change in stock | 100 |
| (xiv) Net domestic fixed capital formation | 600 |
| (xv) Final Consumption expenditure of private non-profit institutions serving households | 300 |
Ans: National Income = ₹ 37,350 Crores
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of National Income by Income Method
NDP at FC = Compensation of Employees (Wages and Salaries + Employers Constribution to Social Security Schemes) + Mixed Income +Rent + Royalty + Interest + Profit ( Corporate tax + Profit after tax)
NDP at FC = (₹ 25,000 + ₹ 0) + ₹ 0 + ₹ 1,500 + ₹ 200 + ₹ 6,400 + (₹ 200 +₹ 4,000 )
NDP at FC = ₹ 37,300 Crores
NNP at FC = NDP at FC + Net Factor income from abroad
NNP at FC = ₹ 37,300 + ₹ 50
NNP at FC = ₹ 37,350 Crores
Calculation of National Income by Expenditure Method
NDP at MP = Private Final Consumption Expenditure (Households final consumption expenditure + Final Consumption expenditure of private non-profit institution serving households) + Government Final Consumption Expenditure + Net Domestic Fixed Capital Formation + Change in Stock + Net Exports
NDP at MP = (₹ 26,000 + ₹ 300) + ₹ 11,200 + ₹ 600 + ₹ 100 + ₹ (-) 200
NDP at MP = ₹ 38,000
NNP at FC (National Income) = NDP at MP + Net Factor income from abroad – Net Indirect tax (Indirect tax – Subsidies)
NNP at FC = ₹ 38,000 + ₹ 50 – (₹ 1,000 – ₹ 300)
NNP at FC = ₹ 37,350 Crores
Anurag Pathak Changed status to publish November 10, 2023
