# calculate national income by expenditure and output methodgross domestic capital formation 250 croresnet exports = -250 croresprivate final consumtion expenditure 1000 croresvalue of output of primary sector 900value of output of secondary sector 800value of output of tertiary sector 400intermediate consumtion of primary sector 400 croresintermediate consumption of secondary sector 300intermediate consumption of tertiary sector 100consumption of fixed capital 80indirect taxes 100govt final consumtion expenditure 100subsidies 10net factor income from abroad -20 crores

The answer provided by Bhumika is correct. However, in calculation of national income by Expenditure Method,

the formula given, GDPMP=C+I+G+X-M is inappropriate here.

The correct formula is just

= private final consumption expenditure+ gross domestic capital formation+ government final consumption expenditure

+ net exports • -2

Value addition by primary sector = value of output of primary sector-intermediate consumtion of primary sector

=900-400=500

Value addition by secondary sector= value of output of secondary sector-intermediate consumption of secondary sector

=800-300=500

Value addition by tertiary sector=value of output of tertiary sector-intermediate consumption of tertiary sector

=400-100=300

NIT= IT- Subsidy

=100-10

=90

National Income with Output method

=500+500+300

=1300

NNPFC = GDPMP-depreciation-NIT+NFIA

=1300-80-90-20

=1110

National Income with Expenditure method

GDPMP=C+I+G+X-M

=private final consumtion expenditure+gross domestic capital formation+govt final consumtion expenditure+net exports

=1000+250+100-250

=1100

NNPFC = GDPMP-depreciation-NIT+NFIA

=1100-80-90-20

=910

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