From the following data relating to an economy, calculate national income by expenditure, income and value added method Interest ₹ 40
From the following data relating to an economy, calculate national income by expenditure, income and value added method.
| Particulars | ₹ in Crores |
| (i) Interest | 40 |
| (ii) Value of Output:
Primary Sector Secondary Sector Tertiary Sector |
1,000
500 450 |
| (iii) Compensation of employees | 245 |
| (iv) Net factor income from abroad | (-) 15 |
| (v) Private final consumption expenditure | 515 |
| (vi) Intermediate cost:
Primary sector Secondary Sector Tertiary Sector |
630
310 265 |
| (vii) Rent and Royalty | 25 |
| (viii) Government final consumption expenditure | 75 |
| (ix) Gross Domestic Fixed Capital Formation | 130 |
| (x) Opening Stock | 40 |
| (xi) Profit | 30 |
| (xii) Closing Stock | 70 |
| (xiii) Net Exports | (-) 5 |
| (xiv) Net Indirect Taxes | 80 |
| (xv) Consumption of fixed capital | 40 |
| (xvi) Mixed income of self-employed | 285 |
Ans:-
National Income = ₹ 620 Crore
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of National Income by Expenditure Method
GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Fixed Capital Formation + (Closing Stock – Opening Stock) + Net Exports
GDP at MP = ₹ 515 + ₹ 75 + ₹ 130 + (₹ 70 – ₹ 40) + (- 5)
GDP at MP = ₹ 745
NNP at FC = GDP at MP – Consumption of fixed Capital + Net Factor income from abroad – Net indirect taxes
NNP at FC = ₹ 745 – ₹ 40 + (- ₹ 5) – ₹ 80
NNP at FC = ₹ 620 Crore
Calculation of National Income by Income Method
NDP at FC = Compensation of Employees + Mixed Income of Self-Employed + Rent and Royalty + Interest + Profit
NDP at FC = ₹ 245 + ₹ 285 + ₹ 25 + ₹ 40 + ₹ 30
NDP at FC = ₹ 625
NNP at FC = NDP at FC + Net Factor Income from abroad
NNP at FC = ₹ 625 – ₹ 5
NNP at FC = ₹ 620 Crore
Calculation of National Income by Value-Added Method
Value of Output = Value of Output of (Primary Sector + Secondary Sector + Tertiary Sector)
Value of Output = ₹ 1,000 + ₹ 500 + ₹ 450
Value of Output = ₹ 1,950
GDP at MP = Value of Output – Intermediate Consumption (Primary Sector + Secondary Sector + Tertiary Sector)
GDP at MP = ₹ 1,950 – (₹ 630 + ₹ 310 + ₹ 265)
GDP at MP = ₹ 745
NNP at FC = GDP at MP – Consumption of Fixed Capital + Net Factor income from abroad – Net indirect taxes
NNP at FC = ₹ 745 – ₹ 40 – ₹ 5 – ₹ 80
NNP at FC = ₹ 620 Crore
Anurag Pathak Changed status to publish November 7, 2023
