Analyse the information given below , and answer the questions
| ₹ in crores | |
| (i) Net Indirect Taxes | 38 |
| (ii) Consumption of fixed capital | 34 |
| (iii) Net factor Income from Abroad | (-)3 |
| (iv) Rent | 100 |
| (v) Profits | 225 |
| (vi) Interest | 40 |
| (vii) Mixed Income of self-employed | 150 |
| (viii) Wages and salaries | 200 |
| (ix) Employers' contribution to social security schemes | 50 |
From the above information, calculate $NNP_{MP}$ is :
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : ₹800 crores
Step 1: Calculate $NDP_{FC}$ : NDPFC is the sum of all incomes earned within the domestic economy (Rent, Profits, Interest, Mixed Income, Wages and salaries, Employers' contribution to social security schemes).
$NDP_{FC}$ =Rent+Profits+Interest+Mixed Income+Wages and salaries+ Employers' contribution to social security schemes
$NDP_{FC}$ = 100+225+40+150+200+50=765 crores
Step 2: Calculate $NNP_{FC}$ to adjust for Net Factor Income from Abroad (NFIA)
$NNP_{FC}$ = $NDP_{FC}$ + NFIA
= 765-3
= 762 Crores
Step 3: Convert $NNP_{FC}$ to $NNP_{MP}$: $NNP_{MP}$ is calculated by adding Net Indirect Taxes to $NNP_{FC}$ .
Net Indirect Taxes = Indirect Taxes - Subsidies.
$NNP_{MP}$ = $NNP_{FC}$ + Net Indirect Taxes
= 762 + 38
= 800 Cr