Question

a) From the following data calculate the value of Domestic Income:

S. No.	ITEMS	Amount (in ₹ Crores)
i)	Compensation of Employees	2,000
ii)	Rent and Interest	800
iii)	Indirect Taxes	120
iv)	Corporate Tax	460
v)	Consumption of Fixed Capital	100
vi)	Subsidies	20
vii)	Dividend	940
viii)	Undistributed Profits	300
ix)	Net Factor Income from Abroad	150
x)	Mixed Income of Self Employed	200

b) Distinguish between ‘Value of Output’ and ‘Value Added’.

Answer 1

a) Domestic Income (NDP@fc) 

=(i)+(ii)+(iv)+(vii)+(viii)+(x) 

=₹2000+₹800+₹460+₹940+ ₹300 +₹200  

=₹4,700 crore   

b) Value of output is the estimated money value of all the goods and services, inclusive of change in stock and production for self-consumption. Whereas,

Value added is the excess of value of output over the value of intermediate consumption.