1. By S Khan PGT ( Economics) K V Aligarh

2.  Steps:-  1- Estiumation of Value of out put:- Value of out put = Sales + change in stock.  2-Estimatimg the value of intermediate consumption- value of intermediate consumption=value of inputs& purchases from other firms

3.  3- Estimating the value of GDP at MP GDP mp = Value of output – intermediate consumption  4- Estimating National income NI = GDP mp – Depreciation – NIT + NFIA

4. 1- Problem of double counting 2-Non availability of reliable data 3- Difficulty in estimating value of goods produced but kept for self consumption

5.  1-Inclusion of imputed rent of self occupied building.  2-Own account production of capital goods is included  3-Goods produced purely for self consumption are not imcluded.

6.  Find national income, GNP mp, GDP fc Sales of primary sector= Rs 3000, Value of output in secondary sector = Rs 3500,Change in stock of primary sector = Rs 400, its closing stock is Rs 450,change in stock of secondary sector = Rs 300,Value of services supplied = Rs 5000,Intermediate consumption of three sectors = Rs 4500,Depreciation = Rs 50, NIT = Rs 60, Net Factor Income to Abroad = (-) Rs 100

7.  Find NI. GNP mp,  Primary sector:-Sales in the country= Rs 2500,Closing stock 200,opening stock=Rs 150,Exports=Rs 600.Intermediate consumption = Rs 500,imports =Rs 210  Secondary sector:- Sales = 3500, Exports= Rs 400,Change in stock =Rs 550, Purchase of raw material from within the country=Rs 250, Imports = Rs 300.Value of services supplied = Rs 4500, intermediate consumption of tertiary sector Rs 1500,Dep = Rs 40, NIT = Rs 30,NFIA = Rs 60

8.  Steps :-  1-Estimating COE:- COE = Wages and salaries + Contribution to Social security’s Schemes  2-Estimating OS :- OS = Rent + Interest + Royalty + Profit OS = Rent + Interest + Royalty + (Dividend + retained earnings of corporate enterprises + corporate gain tax)

9.  3- Estimating Mixed income – it is the income of self employed persons  4- Estimating NDP fc NDP fc = COE + OS + MI 5-Estimating national income NI = NDP fc + NFIA

10.  1- Non availability of reliable data  2- Difficulty created by inter- corporate dividend

11.  1-Imputed rent of self occupied building is included in national income.  2-Income from wind fall gains like lottery is not included.  Transfer earnings like scholarship is not included in national income.

12.  Find National ioncome, GNP mp, NDP mp,and GDP fc COE = Rs 5400, contribution to Social scurrility schemes = Rs 500,Rent and interest = Rs 3000,Dividend = Rs 800, Profit Rs 900, Corporate gain tax = Rs 30,Mixed income of self employed persons= Rs 100,Net export = Rs 40,Factor income to abroad = Rs 60,Depreciation Rs 20,Subsidies = Rs 70.

13.  Steps:-  1-Estimating private final consumption expenditure ( c)  2-Estimating Investment expenditure / Gross domestic capital formation ( I)  3-Estimating Government final consumption expenditure ( G)  4-Estimating Net Export ( X – M )

14.  5-Estimating GDP mp GDP mp = C + I + G + ( X – M ) 6-Estimating national Income NI = GDP mp + NFIA – NIT - Depreciation

15.  1-Non availability of reliable data  2-Difficulty in classification of goods into intermediate and final goods.

16.  1-Imputed rent of self occupied building is included in national income.  2-Expenditure on purchasing second hand goods is not included in national income. But Income earned in the form of commission on sale of second hand goods is included

17.  Find National income, GNPmp,  Private final consumption expenditure= Rs 4000, Government final consumption expenditure= Rs 3000,Net fixed capital formation= Rs 1400, Net Export = Rs 1000, Closing stock = Rs 400, Opening Stock = Rs 600, Depreciation = Rs 550,Indirect tax = Rs 460,factor income to abroad = Rs 570.

18.  Find National income by income and expenditure methods  COE = Rs 2000, Rent and interest = Rs 300, Operating Surplus = Rs 4500, Mixed income = Rs = 1000, Private final consumption expenditure = Rs 2500, Government Final expenditure = Rs 1400, Net domestic fixed capital formation= Rs 550,Net Export = Rs 600,Depreciation = Rs 100, Change in stock = Rs 150.NFIA = Rs 25, NIT = Rs 45 

19. Thank you very much

20.  Topic :- Aggregates relating to National income. Prepared By S Khan PGT Economics, K V Aligarh

21.  Income accrued to private individuals and households from what ever sources in an accounting year Private income = N I - Income from property and entrepreneurship accruing to Govt administrative departments – savings of non departmental enterprises + Current transfers from Government + Net current transfers from ROW + National debt interest

22.  Income actualy received by private individuals and households from what ever sources in an accounting year Personal income = Private income - Corporate gain tax - Corporate Savings

23.  It is the sum of personal consumption expenditure and personal savings  PDI = Personal Income –diect personal income tax – insurance premium paid by employees – miscellaneous receipts of the government  OR  PDI = C + S

24.  It is that part of NDP fc which accrues to private sector only IDPAPS = NDP fc - - Income from property and entrepreneurship accruing to Govt administrative departments – savings of non departmental enterprises.

25.  It is the Sum of NI, NIT and Net current transfers from ROW NNDI = NI + NIT + Net current Transfers from ROW.

26.  It is the Sum of NNDI and Depreciation GNDI = NNDI + Depreciation.

27. Sales + Change in Stock Value of Gross Product - Intermediate Consumption GDP mp, GVA mp - Depreciation NDP mp, NVA mp - NIT NDP fc, NVA fc + NFIA NNP fc, NI

28. NDP fc -income of Depart + NFIA - Savings of non NI Depart Ent IDPAPS - income of department + CurrentTrans Govt Enterprises – savings of +net “ “ ROW Non Depart. Enterprises + NFIA +Current Trans from Govt +Natioanal debt int +Net “ “ “ ROW + National Debt interest Private Income - Corporate Savings -Corporate Gain Tax Personal Income

29. - direct personal income tax -Insurance premium by Employees - Misc Receipts of the Govt PDI - consumption Expenditure Personal savings

30.  Find Pvt Income, PI, PDI, IDPAPS, GNDI NI = Rs 4000, Income from property and entrepreneurship accruing to Govt administrative departments= Rs 500, savings of non departmental enterprises= Rs 400,Income tax = Rs 55, Corporate tax = Rs 30, Corporate Savings = Rs 25,Current transfers from Government= 75, Net current transfers from ROW= Rs 80,Depreciation = Rs 100, National debt interest= Rs 85,NIT Rs 20, NFIA = Rs 65

31.  Find Private income, GNDI,PDI Personal Savings= Rs 1200, Private consumption Exp= Rs 5000, Income from property and entrepreneurship accruing to Govt administrative departments= Rs 500, savings of non departmental enterprises= Rs 400,Income tax = Rs 55, Corporate tax = Rs 30, Corporate Savings = Rs 25,Current transfers from Government= 75, Net current transfers from ROW= Rs 80,Depreciation = Rs 100, National debt interest= Rs 85,NIT Rs 20, NFIA = Rs 65