Question

Find out (a) National Income and (b) Net National Disposable Income :

	(Rs. in crore)
(i) Factor Income from Abroad	15
(ii) Private Final Consumption Expenditure	600
(iii) Consumption of Fixed Capital	50
(iv) Government Final Consumption Expenditure	200
(v) Net Current Transfers to Abroad	(-)5
(vi) Net Domestic Fixed Capital Formation	110
(vii) Net Factor Income to Abroad	10
(viii) Net Imports	(-)20
(ix) Net Indirect Tax	70
(x) Change in Stock	(-)10

Answer 1

(a) NI = (ii) + (iv) + (vi) + (x) - (viii) - (ix) - (vii)

= 600 + 200+ 110 + (-10) - (-20) - 70 - 10

= 600 + 200 + 110 - 10 + 20 - 70 - 10

= Rs. 840 crore.

(b) NNDI =NI + (ix) - (v)

= 840 + 70 - (-5)

= Rs. 915 crore.