Question

On the basis of the given data, estimate the value of National Income: 

Hint:

NNPFC is derived by adjusting GDPMP for depreciation, indirect taxes, subsidies, and net factor income from abroad.

Answer 1

The calculation of National Income (NNPFC) is performed using the following equation:\[NNPFC = GDPMP - Depreciation - Net Indirect Taxes + Net Factor Income from Abroad\]Procedure: First, calculate GDPMP:\[GDPMP = \text{Pvt Final Consumption Exp} + \text{Govt Final Consump Exp} + \text{GDFCF} + \text{Addin Stock} + \text{Export}\]\[= 200 + 110 + 30 + 20 + (-40) = 320\]Next, adjust GDPMP to derive NNPFC:\[NNPFC = GDPMP - \text{Depreciation} - (\text{Indirect Taxes} - \text{Subsidies}) + \text{Net Factor Income from Abroad}\]\[= 320 - 15 - (60 - 15) + (-40)\]\[= 320 - 15 - 45 - 40 = 220\]Result: \[\mathbf{NNPFC = Rs. 220 \text{ crore}}\]