Calculate National Income by Income and Expenditure Method Compensation of employees ₹ 600

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Anurag Pathak28.60K November 10, 2023 0 Comments

Calculate National Income by Income and Expenditure Method.

Particulars	₹ in Crores
(i) Compensation of employees	600
(ii) Government final consumption expenditure	550
(iii) Net Factor income from abroad	(-) 10
(iv) Net Exports	(-) 15
(v) Profit	400
(vi) Net Indirect tax	60
(vii) Mixed income of self employed	350
(viii) Rent	200
(ix) interest	310
(x) Private final consumption expenditure	1,000
(xi) Net domestic Capital formation	385
(xii) Consumption of fixed capital	65

Ans: National Income – ₹ 1,850 Crores

score 0 · Answer 1 · 2023-11-10T07:20:32+00:00

Solution:-

Calculation of National Income by Income Method

NDP at FC = Compensation of employees + Mixed income of self employed + Rent + Interest + Profit

NDP at FC = ₹ 600 + ₹ 350 + ₹ 200 + ₹ 310 + ₹ 400

NDP at FC = ₹ 1860 Crores

NNP at FC = NDP at FC + Net Factor Income from abroad

NNP at FC = ₹ 1860 + ₹ (-) 10

NNP at FC = ₹ 1850 Crores

Calculation of National Income by Expenditure Method

NDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Net Domestic Capital Foramtion + Net Exports

NDP at MP = ₹ 1,000 + ₹ 550 + ₹ 385 + ₹ (-) 15

NDP at MP = ₹ 1920 Crores

NNP at FC (National Income) = NDP at MP + Net Factor Income from abroad – Net Indirect tax

NNP at FC (National Income) = ₹ 1920 + ₹ (-) 10 – ₹ 60

NNP at FC (National Income) = ₹ 1850 Crores