Question

Find the Final Gross National Product at Market Price and Private Income:

$\begin{array}{cc}& \text{(Rs. in crores)}\\ \text{(i) Private final consumption expenditure}& \text{800}\\ \text{(ii) Net current transfers to abroad}& \text{20}\\ \text{(iii) Net factor income to abroad}& \text{(-)10}\\ \text{(iv) Government final consumption expenditure}& \text{300}\\ \text{(v) Net indirect tax}& \text{150}\\ \text{(vi) Net domestic capital formation}& \text{200}\\ \text{(vii) Current transfers from government}& \text{40}\\ \text{(viii) Depreciation}& \text{100}\\ \text{(ix) Net imports}& \text{30}\\ \text{(x) Income accruing to government}& \text{90}\\ \text{(ix) National debt interest}& \text{50}\end{array}$

Answer 1

$ND{P}_{MP}$
= Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation - Net imports
= (i)+(iv)+(vi)-(ix)= 800+300+200-30 = Rs. 1,270 crores

$GN{P}_{MP}$
= $ND{P}_{MP}$ + Depreciation - Net factor income to abroad
= $ND{P}_{MP}$ + (viii)-(iii)=1,270+100-(-10)=Rs. 1,380 crores

$ND{P}_{FC}$
= $ND{P}_{MP}$ - Net Indirect tax
= 1,270-150 = Rs. 1,120 crores

Private Income
= $ND{P}_{Fc}$ - Income accruing to governemnt - Net factor income to abroad - Net current transfers to abroad + National debt interest + Current transfers from government
$=ND{P}_{FC}$ -(x)-(iii)-(ii)+(xi)+(vii)= 1,120-90-(-10)-20+50+40 = Rs. 1,110 crores.