From the following data, calculate National Income by Income method an

1.	From the following data, calculate National Income by Income method and Expenditure method:ItemRs in crores(i) Compensation of employees700(ii) Government final consumption expenditure750(iii) Net factor income form abroad(-) 10(iv) Net exports(-) 15(v) Profits600(vi) Net indirect taxes60(vii) Mixed income of self employed350(viii) Rent200(ix) Interest310(x) Private final consumption expenditure1100(xi) Net domestic capital formation385(xii) Consumption of fixed capital65
Answer» Income Method: NDP_FC = COE + OS + MI = 700 + (200 + 0 + 310 + 600) + 350 = 2160 NNP_FC = NDP_FC + NFIA = 2160 + (-10) = 2150 Expenditure Method: GDP_MP = PFCE + GFCE + GDCF + Net Exports = 1100 + 750 + (385 + 65) + (-15) = 2285 NNP_FC = GDP_MP – Dep. + NFIA – NIT = 2285 – 65 + (-10) – 60 = 2150

From the following data, calculate National Income by Income method and Expenditure method:ItemRs in crores(i) Compensation of employees700(ii) Government final consumption expenditure750(iii) Net factor income form abroad(-) 10(iv) Net exports(-) 15(v) Profits600(vi) Net indirect taxes60(vii) Mixed income of self employed350(viii) Rent200(ix) Interest310(x) Private final consumption expenditure1100(xi) Net domestic capital formation385(xii) Consumption of fixed capital65

Answer»

Income Method:

NDP_FC = COE + OS + MI = 700 + (200 + 0 + 310 + 600) + 350 = 2160

NNP_FC = NDP_FC + NFIA = 2160 + (-10) = 2150

Expenditure Method:

GDP_MP = PFCE + GFCE + GDCF + Net Exports = 1100 + 750 + (385 + 65) + (-15) = 2285

NNP_FC = GDP_MP – Dep. + NFIA – NIT = 2285 – 65 + (-10) – 60 = 2150