Calculate (a) net domestic product at factor cost and (b) gross national disposable income :

Rs.in crores
(i) Private final consumption expenditure 8,000
(ii) Government final consumption expenditure 1,000
(iii) Exports 70
(iv) Imports 120
(v) Consumption of fixed capital 60
(vi) Gross domestic fixed capital formation 500
(vii) Change in stock 100
(viii) Factor income to abroad 40
(ix) Factor income from abroad 90
(x) Indirect taxes 700
(xi) Subsidies 50
(xii) Net current transfers to abroad (-) 30
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1 Answers

(a) NDPFC = Private Final Consumption Expendiiure + Government final consumption expenditure + Gross domestic fixed capital formation + Change in Stock +Exports - Imports - Consumption of Fixed Capital - (Indirect Taxes - Subsidies)

= 8,000 + 1,000 + 500 + 100 + 70 -120 -60- (700-S0)

= Rs. 8,840 crores

(b) Gross National Disposable Income : NDPFC +Net Indirect Taxes - Net current transfer to abroad + Factor income from abroad - Factor income to abroad

= 8,840 + (700 - 50) - (- 30) + 90 - 40

= Rs. 9,570 crores

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