Question

Calculate National Income by Income and Expenditure method.
in crores
Particulars
7,351
(1
) Government final consumption expenditure
(ii) Indirect tax
(ii) Gross fixed capital formation
(iv) Mixed income of the self employed
(v) Subsidies
(vi) Change in stock
(vii) Rent, interest and profits
(viii
) Consumption of fixed capital
(ix) Private Final Consumption expenditure
(x) Imports of goods and services
(xi) Exports of goods and services
(xii) Net factor income from abroad
(xii) Compensation of employees
8,834
13,248
28,267.
1,120
3,170
9,637
4,046
51,177
5,674
4,812
(-) 255
24,420
​

Answer 1

Answer:

Explanation:

Expenditure Method

GDPMP = Private final consumption expenditure+ Government final consumption expenditure+ Gross fixed capital formation + Change in stock+ Net exports

             = (ix)+ (i)+(iii)+(vi)+[(xi)-(x)]

            = 51177+ 7351+13248+3170+ [4812-5674]

            = 74,084

NNPFC= GDPMP- consumption of fixed capital +NFIA-NIT

              = 74,084 - 4046 +[-255]+ [8834-1120]

             = 77497

Income Method

NDPFC = Compensation of employees+ operating surplus+ Mixed Income of self employed

            = (xiii)+(vii)+ (iv)

             = 24, 420+9,637+28,267

NDPFC = 62324

National Income (NNPFC) = NDPFC+NFIA

                                             62324 + [-255]

                                         =62069