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.

Question

Philoid · Accepted Answer

Given –

National Income (NNP_FC) = Rs.850 crores

GDP_MP = Rs.1100 crores

Net factor income from abroad (NFIA) = Rs.100 crores

Net indirect taxes = Rs.150 crores

NNP_FC = + Net factor income from abroad - Depreciation - Net indirect taxes

850 = 1100 + 100 - Depreciation – 150

850 = 1100 - 50 – Depreciation

850 = 1050 – Depreciation

Depreciation = 1050 - 850 = Rs.200 crores

So, depreciation is Rs.200 crores.