Question

From the following data calculate national income by : (a) Income method (b) Expenditure method :

Answer 1

(a) Income method
`NDP_(FC)=COE+OS+MI`
`=1900+720+0= Rs 2620` crore
`N NP_(FC)=NDP_(FC)+NFIA`
`=2620+(-20)=2620-20= Rs 2600` crore
(b) Expenditure method
`GDP_(MP)=PFCE+GFCE+GDCF+`Net exports
`=PFCE+GFCE+("Net capital formation + CFC")+` Net exports
`=2000+600+(400+100)+20= Rs 3120` crore
`N NP_(FC)=GDP_(MP)-"Dep."+NFIA-NIT`
`=3120-100+(-20)-400`
`=3120-100-20-400= Rs 2600` crore