Calculate National Income by Income and Expenditure Method Government Final Consumption Expenditure ₹ 7,351
Calculate National Income by Income and Expenditure Method.
| Particulars | ₹ in Crores |
| (i) Government Final Consumption Expenditure | 7,351 |
| (ii) Indirect tax | 8,834 |
| (iii) Gross fixed Capital Formation | 13,248 |
| (iv) Mixed income of the self employed | 28,267 |
| (v) Subsidies | 1,120 |
| (vi) Change in stock | 3,170 |
| (vii) Rent, interest and profits | 9,637 |
| (viii) Consumption of fixed Capital | 4,046 |
| (ix) Private Final Consumption Expenditure | 51,177 |
| (x) Imports of goods and services | 5,674 |
| (xi) Exports of goods and services | 4,812 |
| (xii) Net factor income from abraod | (-) 255 |
| (xiii) Compensation of employees | 24,420 |
Ans: National income = ₹ 62,069 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 of Self-employed + Rent, interests and profits
NDP at FC = ₹ 24,420 + ₹ 28,267 + ₹ 9,637
NDP at FC = ₹ 62,324 Crores
NNP at FC (National Income) = NDP at FC + Net factor income from abroad
NNP at FC (National Income) = ₹ 62,324 + ₹ (-) 255
NNP at FC (National Income) = ₹ 62,069 Crores
Calculation of National Income by Expenditure Method
GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Fixed Capital Formation + Change in Stock + Net Exports (Exports of goods and services – Imports of goods and services)
GDP at MP = ₹ 51,177 + ₹ 7,351 + ₹ 13,248 + ₹ 3,170 + (₹ 4,812 – ₹ 5,674)
GDP at MP = ₹ 74,084 Crores
NNP at FC (National Income) = GDP at MP – Consumption of fixed Capital + Net Factor income from abraod – Net indirect tax (Indirect tax – Subsidies)
NNP at FC (National Income) = ₹ 74,084 – ₹ 4,046 + ₹ (-) 255 – (₹ 8,834 – ₹ 1,120)
NNP at FC = ₹ 62,069 Crores
Anurag Pathak Changed status to publish November 10, 2023
