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Calculate National Income by (i) Income Method and (ii) Expenditure Method from the following data :(Items)(Rs. in crore)(i) Govt. Final Consumption Expenditure2,000(ii) Net Domestic Capital Formation600(iii) Consumption of Fixed Capital70(iv) Net Exports60(v) Net Indirect Taxes200(vi) Private Final Consumption Expenditure4,000(vii) Net Factor Income to abroad60(viii) Compensation of Employees3,660(ix) Profits1,500(x) Rent500(xi) Interest800(xii) Dividend300 |
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Answer» National Income : Income Method NNPFC = Compensation of Employees + profit + Rent + Interest - Net Factor lncome to Abroad NI = 3,660 + 1,500 + 800 - 60 + 500 = 6,460 - 60 NNPFC = Rs. 6,400 crore. Expenditure method NNPFC = Government Final Consumption Expenditure + Net Domestic Capital Formation + Net Exports + Private Final Consumption Expenditure - Net Indirect Taxis - Net Factor Income to Alroad = 2,000 + 600 + 50 + 4,000 - 200 + (-60) = 2,000 + 600 + 60 + 4,000 - 200 - 60 = [6,660] - [250] NNPFC or NI = Rs. 6,400 crore. |
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