Calculate National Income by Income and Expenditure Method Compensation of Employees ₹ 1,200

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Anurag Pathak30.42K November 10, 2023 0 Comments

Calculate National Income by Income and Expenditure Method

Particulars	₹ in Crores
(i) Compensation of Employees	1,200
(ii) Net Factor income from abraod	(-) 20
(iii) Net indirect tax	120
(iv) Profits	800
(v) Private Final Consumption Expenditure	2,000
(vi) Net Domestic Capital Formation	770
(vii) Consumption of fixed Capital	130
(viii) Rent	400
(ix) Interest	620
(x) Mixed income of self employed	700
(xi) Net Exports	(-) 30
(xii) Government final consumption expenditure	1,100

Ans: National Income = ₹ 3,700 Crores

score 0 · Answer 1 · 2023-11-10T07:51:45+00:00

Solution:-

Calculation of National Income by Income Method

NDP at FC = Compensation of Employees + Mixed income of self employed + Rent + Interest + Profits

NDP at FC = ₹ 1,200 + ₹ 700 + ₹ 400 + ₹ 620 + ₹ 800

NDP at FC = ₹ 3,720 Crores

NNP at FC (National Income) = NDP at FC + Net Factor income from abroad

NNP at FC (National Income) = ₹ 3,720 + ₹ (-) 20

NNP at FC (National Income) = ₹ 3,700 Crores

Calculation of National Income by Expenditure Method

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

NDP at MP = ₹ 2,000 + ₹ 1,100 + ₹ 770 + ₹ (-) 30

NDP at MP = ₹ 3840 Crores

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

National Income (NNP at FC) = ₹ 3840 + ₹ (-) 20 – ₹ 120

National Income (NNP at FC) = ₹ 3,700 Crores