Question

Calculate (a) Net National Product at MP, and (b) Gross National Disposable Income

ITEMS	Rs. crores
a. Private final Consumption expenditure	200
b. Net indirect taxes	20
c. Change in stocks	(--)15
d. Net current transfers from abroad	(--)10
e. Govt. final consumption expenditure	50
f. Consumption of fixed capital	15
g. Net domestic capital formation	30
h. Net factor income from abroad	5
i. Net imports	10

Answer 1

GNDI = NNP_PC + NFIFA + Net indirect taxes + Net current transfers from abroad + Depreciation (consumption of fixed capital)

NNP_MP – net in tax = 275 – 20 =255 crores