Calculations of different national income aggregates

1. 1.From the following data, calculate “gross value added at
factor cost
Solution : We have to calculate GVAfc means we should have
GVAmp
GVAmp=Sales+ Change in Stock- intermediate consumption
Sales 180+ Change in stock 15- Intermediate consumption
(Raw material )100= 195-100=95
GVAmp 95
GVAfc=GVAmp-NIT (IT-Subsidies)
GFAfc=95-(-10)
95(- -=+)10=105
(Rs. in lakhs)
i. Sales 180
ii. Rent 5
iii. Subsidies 10
iv. Change in stock 15
v. Purchase of raw materials 100
vi. Profits 25

2. 2.Calculate NVAfc
ITEMS Amount
1 Subsidies 40
2 Sales 800
3 Depreciation 30
4 Exports 100
5 Closing Stock 20
6 Opening Stock 50
7 Intermediate Stock 500
8 Indirect Taxes 60
9 Purchase of machinery for own
use
200
We need NVAfc that is V for value of out first we
need to calculate
Value of output= Sales+ change in stock –
Intermediateconsumption
GVAmp=800+(20-50)-500
800+30-500=330
NVAfc=GVAmp-D-NIT
NVAfc=330-30-(60-40)
330-30=300-20=280

3. 3. Calculate NVAfc
Items Amount
1 Depreciation 20
2 Sales 300
3 NIT 30
4 Intermediate use 150
5 Change is stock -10
6 Purchase of machinery 100
Solution : if NVAfc is to be calculated we need GVAmp
that is
Sales+ Change in stock –(IC)
300+(-10)-(150)=140
NVAfc=GVAmp- D -NIT
140 -20 -30=90
NVAfc = 90
4.Calculate GVAfc
Items Amount
1 NIT 20
2 Sales 250
3 IC 120
4 Change in stock 30
5 Purchase of machinery 300

4. 6 Depreciation 20
Solution:it means we need GVAmp that is gross
value at market price
GVAmp=Sales + Change in Stock -IC
250+ 30 -120=160
GVAfc=GVAmp=160-NIT20=140
5.Calculate NVAfc
Items Amount
1 Exports 7
2 Sales 140
3 Intermediate 90
4 Change in stock -10
5 Purchase of machine 300
6 Deprecation 20
7 Subsidy 5
8 Imports of material 3
9
NVAfc is to be calculated so we need GVAfc
GFVfc= Sales + Change in stock-IC
140 + (-10) -90
=40

5. 5. Calculate (i) GDPMP ,
(ii) Net Value Added at factor cost; and (iii) prove that it is equal
to the income generated.
Items Amount
1 Increase in the stock of unsold
goods
1000
2 Sales 10000
3 NIT 800
4 Purchases of Raw material 1650
5 Purchase of fuel 850
6 Depreciation 500
7 Rent 700
8 Wages and salaries 3500
9 Interest 1000
10 Dividend 1500
11 Corporate tax gain 300
12 Undistributed profit 200
Solution:
GDPMP = Sales + Increase in the stock - Purchase of raw
materials - Purchase of fuel and power.
= 10,000 + 1000 -1650 -850
= 11,000 -2500
= 8500 Crores.
Net Value Added at factor cost = Sales + Increase in the stock -
Purchase of raw materials –
Purchase of fuel and power - Consumption of fixed capital - Net
indirect tax.

6. = 10,000 + 1000 - 1650 - 850 - 500 – 800
= 11,000 – 3800
= 7200 Crores.
Income generated = Rent + Wages and salaries + Interest +
Dividend + Corporate gain tax +
Undistributed profit.
= 700 + 3500 + 1000 + 1500 + 300 + 200
= 7200 Crores.
Hence it is proved that Net Value Added at factor cost =
Income Generated profit .
7.Calculate GVAfc
Items Amount
1 Purchase of Raw material 30
2 Depreciation 12
3 Sales 200
4 Excise 20
5 Opening stock 15
6
7
Intermediate consumption
Closing stock
48
10
GVAMP = Value of output – Intermediate Consumption
= Sales + change in stock – Intermediate Consumption
= 200+ (10 -15) – 48
= 200 - 5 - 48
= 200 - 53
= Rs.147 Crores

7. NVAMP = GVAMP –Depreciation
= Rs. 147 – 12
= Rs. 135 crores
NVAFC = NVAMP – Indirect tax
= 135 – 20
= Rs. 115 Crores
8. Calculate NVAmp
1 Sales 700
2 Change in stock 40
3 Depreciation 80
4 NIT 100
5 Purchases of machinery 250
6 Purchases of intermediate 400
Solution
FORMULA: -
Value of Output = Sale + change in stock
700 + 40=740
NVAat mp = Value of output - purchase of intermediate product
- depreciation
740 - 400 - 80 = 260
Ans. 260

8. 9. Suppose the GDP at market price of a country in a particular
year was Rs 1,100
crores. Net Factor Income from Abroad was Rs 100 crores. The
value of Indirect
taxes – Subsidies was Rs 150 crores and National Income was
Rs 850 crores.
Calculate the aggregate value of depreciation.
Solution
As per question, GDPmp=1100 crores, NFIA =100 crores, NIT
=150 crores,
NNPfc = 850 crores
∴ GDPFC= GDPMP- NIT
= 1100 – 150 = 950 crores.
GNPfc= GDPfc+ NFIA
= 950 + 100 = 1050 crores.
NNPfc = GNPFC + Depreciation
1050 = 850+ Depreciation
Depreciation = 1050 – 850 = 200 crores.

9. 10 Calculate GNPmp, NNPmp, NDPmp, NDPfc
Items Amount
1 GNPfc 6200
2 Depreciation 160
3 Sales Tax 105
4 Net Factor Income to Abroad -100
5 Excise Duties 75
6 Subsidies 140
Solution:
NDPfc=GNPfc-Dep-NFIA
=6200- 160 -100 = 5940
GNPmp= NDPfc + Dep +NIT
=5940 + 160 + (105+75-140)
6100+140=6240
NNPmp
GNPmp -Dep
6240 – 160=6080
NDPmp=NDPfc + NIT
5940 + (105+75-140)
5940