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Question
Calculate national income and gross national disposable income from the following:
| (Rs Arab) | ||
| 1 | Net current transfers to abroad | 5 |
| 2 | Government final consumption expenditure | 100 |
| 3 | Net indirect tax | 80 |
| 4 | Private final consumption expenditure | 300 |
| 5 | Consumption of fixed capital | 20 |
| 6 | Gross domestic fixed capital formation | 50 |
| 7 | Net imports | (-)10 |
| 8 | Closing stock | 25 |
| 9 | Opening stock | 25 |
| 10 | Net factor income to abroad | 10 |
Solution
National domestic income at factor cost = Private final consumption expenditure + Government final consumption expenditure − Net imports + (Gross domestic fixed capital formation + Closing stock − Opening stock) − Depreciation − Net indirect taxes
National income (NDPFC) = = 300 + 100 − (−10) + (50 +25 − 25) − 20 − 80 = Rs 360 arab
Net national disposable income = = NDPFC − Net factor income to abroad + Net indirect taxes + Net current transfers from ROW
Net national disposable income = 360 − 10 + 80 + (−5) = Rs 425 arab
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RELATED QUESTIONS
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| (Rs In crores) | |
| (i) Compensation of employees | 2,000 |
| (ii) Rent | 400 |
| (iii) Profit | 900 |
| (iv) Dividend | 100 |
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| (vi) Mixed income of self- employed | 7,000 |
| (vii) Net factor income to abroad | 50 |
| (viii) Net export | 60 |
| (ix) Net indirect taxes | 300 |
| (x) Depreciation | 150 |
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| (vii) Net factor income to abroad | 50 |
| (viii) Net export | 60 |
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| (x) Depreciation | 150 |
Calculation National Income and Personal Disposable Income:
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| 1 | Rent | 100 |
| 2 | Net current transfers to rest of the world | 30 |
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| 5 | Gross domestic capital formation | 140 |
| 6 | Royalty | 20 |
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| 10 | Net factor income from abroad | (-)10 |
| 11 | Net indirect tax | 150 |
| 12 | Profit | 200 |
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In crores |
| Consumption | 200 |
| Investment | 300 |
| Govt.Expenditure | 400 |
| Net export | - 100 |
| Net receipts | - 50 |
| Depreciation | 100 |
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