Question

Calculate National Income

(Content)	(Rs. in crore)
(i) Net domestic capital formation	150
(ii) Government final consurnption expenditure	300
(iii) Net factor income from abroad	(-) 20
(iv) Private final consumption expenditure	600
(v) Depreciation	30
(vi) Net exports	50
(vii) Net indirect taxes	90
(viii) Net current transfers from rest of the world	40

Answer 1

National income = (iv) + (ii) + (i) + (vi) + (iii) - (vii)

= Private final consumption expenditure + Govt.final consumption expenditure + Net domestic capital formation + Net exports + [Net factor income from abroad - Net indirect taxes]

= 600 + 300 + 150 + 50 + (-20) - 90

= 1,100 - 110

N.I = Rs. 990 crore.