question_answer

Find out (a) National Income
(Rs. crore)
(i)	Net imports	(-)10
(ii)	Net domestic fixed capital formation	100
(iii)	Private final consumption expenditure	600
(iv)	Consumption of fixed capital	60
(v)	Change in stocks	(-)50
(vi)	Government final consumption expenditure	200
(vii)	Net factor income to abroad	20
(viii)	Net current transfers to abroad	30
(ix)	Net indirect tax	70
(x)	Factor income from abroad	10

Answer:

(a) National Income

= Private final consumption expenditure + Government final consumption expenditure + [Net domestic fixed capital formation + Change in stocks] - Net imports - Net factor income to abroad - Net indirect tax

= (iii) + (vi) + [(ii) + (v)] - (i) - (vii) - (ix)

\[=600+200+[100+(-50)]1-(-10)-20-70\]

\[=800+100-50+10-90=910-140\]= Rs 770 crores