Calculate (a) Gross National Product at Factor Cost and (b) Net National Disposable Income from the following data:
(a) Gross National Product at Factor Cost ($GN{{P}_{FC}}$)
=Private Final Consumption Expenditure +Government Final Consumption Expenditure + Net Domestic Fixed Capital Formation + Change in Stock + Net Export + Consumption of Fixed Capital - Net Factor Income to Abroad - Net Indirect Tax = 5000 +2000 +500 + (-30) + (-150)+100-50-800 = 7600-1030 = Rs.6570 crore
(b) Net National Disposable Income (NNDI)
= $GN{{P}_{FC}}$ + Net Indirect Tax - Consumption of Fixed Capital + Net Current Transfers from Rest of the World = 6570 + 800 - 100 + 30 (70 - 40) = 7400-100 = Rs. 7300 crore
As GNP is at factor cost, hence NIT has been added.