Calculate Net Value Added at Factor Cost (NVA_FC) from the following data : From the following data, estimate the value of Net Indirect Taxes (NIT) : S. No. | Particulars | Amount (in Rs. lakh) (i) | Fixed capital goods (expected life span – 5 years) | 15 (ii) | Domestic Sales | 200 (iii) | Change in stock | (–) 10 (iv) | Exports | 10 (v) | Single use producer goods | 120 (vi) | Net indirect taxes | 20 S. No. | Particulars | Amount (Rs. in crore) (i) | Net National Product at Market Price (NNP_MP) | 1,400 (ii) | Net Factor Income from abroad | (–) 20 (iii) | Gross National Product at Factor Cost (GNP_FC) | 1,300 (iv) | Consumption of fixed capital | 100

Question

Accepted Answer

(i) NVA_FC calculation:
Given: Fixed capital goods (life 5 years) = 15 lakh, so Depreciation = 15/5 = 3 lakh
Domestic Sales = 200, Change in stock = -10, Exports = 10
Single use producer goods = 120 (intermediate consumption)

Value of Output = Sales + Change in Stock = 200 + (-10) = 190 lakh
But we need to add exports: Value of Output = 190 + 10 = 200 lakh
Wait, sales already include exports when 'Sales' is given (not 'Domestic Sales'). Since 'Domestic Sales' is given separately:
Value of Output = Domestic Sales + Exports + Change in Stock = 200 + 10 + (-10) = 200 lakh
Intermediate Consumption = Single use producer goods = 120 lakh
NVA_FC = 200 - 120 - 3 = Rs. 77 lakh

(ii) NIT calculation:
Given: NNP_MP = 1400, NFIA = -20, GNP_FC = 1300, Depreciation = 100
NNP_FC = GNP_FC - Depreciation = 1300 - 100 = 1200
NIT = NNP_MP - NNP_FC = 1400 - 1200 = Rs. 200 crore