Question

Calculate the nominal income and private income from the following data.
Contents ₹. (in crores)

Net current transfers from the rest of the world 10

Private final consumption expenditure 600
National debt interest 15

Net exports -20

Current transfers from the government 5

Net domestic product at factor cost accruing to the government 25

Government final consumption expenditure 100

Net indirect tax 30

Net domestic capital formation 70

Net factor income from abroad 10

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Answer 1

Answer:

Explanation:

National income (income method) = Compensation of employees + Profits + Rent + Interest + Mixed income of self employed - Net factor income to abroad = 700 + 600 + 200 + 310 + 350 - 10 = 2150 crores

National income (expenditure method) = Govt. final consumption expenditure+Net domestic capital formation+Net exports+Private final consumption expenditure-Net indirect taxes-Net factor income to abroad=750 + 385 - 15 + 1100 - 60 - 10 = 2150 crores.