Calculate National Income by (i) Income Method and (ii) Expenditure Method from the following data :
Calculate National Income by (i) Income Method and (ii) Expenditure Method from the following data :
| (Items) | (Rs. in crore) |
| (i) Govt. Final Consumption Expenditure | 2,000 |
| (ii) Net Domestic Capital Formation | 600 |
| (iii) Consumption of Fixed Capital | 70 |
| (iv) Net Exports | 60 |
| (v) Net Indirect Taxes | 200 |
| (vi) Private Final Consumption Expenditure | 4,000 |
| (vii) Net Factor Income to abroad | 60 |
| (viii) Compensation of Employees | 3,660 |
| (ix) Profits | 1,500 |
| (x) Rent | 500 |
| (xi) Interest | 800 |
| (xii) Dividend | 300 |
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National Income : Income Method
NNPFC = Compensation of Employees + profit +
Rent + Interest - Net Factor lncome to Abroad
NI = 3,660 + 1,500 + 800 - 60 + 500
= 6,460 - 60
NNPFC = Rs. 6,400 crore.
Expenditure method
NNPFC = Government Final Consumption Expenditure + Net Domestic Capital Formation + Net Exports + Private Final Consumption Expenditure - Net Indirect Taxis - Net Factor Income to Alroad
= 2,000 + 600 + 50 + 4,000 - 200 + (-60)
= 2,000 + 600 + 60 + 4,000 - 200 - 60
= [6,660] - [250]
NNPFC or NI
= Rs. 6,400 crore.
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