Question

Calculate Net National Product at Market Price and Private income :

| | (Rs. in crore) |
| (i) Net Current Transfers to Abroad | 10 |
| (ii) Private Final Consumption Expenditure | 500 |
| (iii) Current Transfers from Government | 30 |
| (iv) Net Factor Income to Abroad | 20 |
| (v) Net Exports | (-) 20 |
| (vi) Net Indirect Tax | 120 |
| (vii) National Debt Interest | 70 |
| (viii) Net Domestic Capital Formation | 80 |
| (ix) Income Accruing to Government | 60 |
| (x) Government Final Consumption Expenditure | 100 |

Answer 1

GDPMP = Private Final Consumption Expenditure +Government Final Consumption Expenditure + (Net Domestic Capital Formation + Depreciation) + Net Exports

GDPMP = 500+ 100+ (80+ 0) + (-20)

GDPMP = Rs.660crore

NNPMP= GDPMP - Depreciation - Net Factor Income to Abroad

NNPMP = 660-0-20

NNPMP = Rs.640crore

Private Income = NNPMP - Net Indirect Tax - Income Accruing to Government + Current tansfers from Government - Net Current Tlansfers to Abroad + National Debt Interest

Private Income = 640 - 120 - 60 + 30 - 10 + 70

Private Income =Rs. 550 crore