S.No. | Items | (Rs.) in crores |
(i) | Net Domestic Capital Formation | 500 |
(ii) | Compensation of Employees | 1,850 |
(iii) | Consumption of Fixed Capital | 100 |
(iv) | Government Final Consumption Expenditure | 1,100 |
(v) | Private Final Consumption Expenditure | 2,600 |
(vi) | Rent | 400 |
(vii) | Dividend | 200 |
(viii) | Interest | 500 |
(ix) | Net Exports | \[(-)\]100 |
(x) | Profits | 1,100 |
(xi) | Net Factor Income from Abroad | \[(-)\]50 |
(xii) | Net Indirect Taxes | 250 |
Answer:
(i) By Income Method Gross National Product at Factor Cost = Compensation of Employees + Rent + Interest + Profits + Net Factor Income from Abroad + Consumption of Fixed Capital \[=1,850+400+500+1,100+(-50)+\text{ }100\]=3,950-50=Rs. 3,900 crore (ii) By Expenditure Method Gross National Product at Factor Cost = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Net Domestic Capital Formation + Consumption of Fixed Capital + Net Exports + Net Factor Income from Abroad - Net Indirect Taxes \[=1,850+400+500+1,100(-100)+(-50)+\text{ }100\]= 4,300 - 400 = Rs.3,900 crore The economic value involved in estimation of national income is to assess the level of economic development in the country.
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