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Question
Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes − Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.
Solution
National Income (NNPFC) = Rs.850 crores
GDPMP = Rs.1100 crores
Net factor income from abroad = Rs.100 crores
Net indirect taxes = Rs.150 crores
NNPFC = GDPMP + Net factor income from abroad − Depreciation − Net indirect taxes
Putting these values in the formula,
850 = 1100 + 100 − Depreciation − 150
⇒ 850 = 1100 − 50 − Depreciation
⇒ 850 = 1050 − Depreciation
⇒ Depreciation = 1050 − 850 = Rs.200 crores
So, depreciation is Rs.200 crores.
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