Suppose in an imaginary economy, GDP at Market Price in a particular fiscal year was Rs. 4,000 crores, National Income was Rs. 2,500 crores, Net Factor Income paid by the economy to Rest of the World was Rs. 400 crores and the value of Net Indirect Taxes is Rs. 450 Crores. Estimate the value of consumption of fixed capital for the economy from the given data.

Suppose in an imaginary economy, GDP at Market Price in a particular f

1.	Suppose in an imaginary economy, GDP at Market Price in a particular fiscal year was Rs. 4,000 crores, National Income was Rs. 2,500 crores, Net Factor Income paid by the economy to Rest of the World was Rs. 400 crores and the value of Net Indirect Taxes is Rs. 450 Crores. Estimate the value of consumption of fixed capital for the economy from the given data.
Answer» Depreciation/`CFC=GDP_(MP)-NDP_(MP)` `NDP_(MP)=N NP_(FC)-NFIA+NIT` `=2500-(-400)+450=2500+400+450=3350` Depreciation `=4000-3350=Rs. 650` Crore. Or `N NP_(FC)=GDP_(MP)-"Depreciation"-"Net factor income paid abroad"-NIT` `2500=4000-"Depreciation"-400-450` `2500=4000-850-"Depreciation"` Depreciation `=3150-2500` Depreciation = Rs. 650 Crore