Question

estimating National income by expenditure method and income method from the following data private final consumption expenditure 210 government final consumption expenditure 50 net domestic capital formation 40 net exports (-5) wages and salaries 170 employees contribution to provident fund 10 profit 45 interest 20 indirect taxes 30 subsidies 5 rent NFIA 3 consumption of fixed capital 25 royalty 15​

Answer 1

Answer:

National Income (NNPFC)

Expenditure Method:

(1) + (2) + (3) + (4) = NDPMP

210 + 50 + 40 + (-5) = Rs. 295

NNPFC = NDPMP + Factor Income from Abroad – Net Indirect Tax (Indirect tax subsidy)

= 295 + 3 – (30 – 5)

= 295 + 3 – 25

= 298 – 25 = 273

NNPFC = Rs. 273 crores

Income Method :

NDPFC = (5) + (6) + (7) + (8) + (11) + (15)

= 170 + 10 + 45 + 20 + 10 + 15

= 270

NDPFC = NDPFC + FIFA

= 270 + 3 = Rs. 273 crores