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Question
Calculate National Income from the following data:
| S.No. | Particulars | Rs.in crores |
| (i) | Private final consumption expenditure | 900 |
| (ii) | Profit | 100 |
| (iii) | Government final consumption expenditure | 400 |
| (iv) | Net indirect taxes | 100 |
| (v) | Gross domestic capital formation | 250 |
| (vi) | Change in stock | 50 |
| (vii) | Net factor income from abroad | (-)40 |
| (viii) | Consumption of fixed capital | 20 |
| (ix) | Net imports | 30 |
Solution
NNPFC = Private Final Consumption Expenditure + Government Final Consumption Expenditure − Net Imports + Gross Domestic Capital Formation − Consumption of Fixed Capital − NIT + NFIA
= 900 + 400 − 30 + 250 − 20 − 100 + (−40)
= Rs 1,360 crore
(Note: Change in stock is not considered as it is a part of the gross domestic capital formation)
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