Indian Economy
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National income, growth and base years
NNP
NNP = GNP - \text{Depreciation}
GNP already includes net factor income from abroad
GDP deflator
\text{Deflator} = \frac{\text{Nominal GDP}}{\text{Real GDP}} \times 100
divide nominal by (deflator/100) to get real
Market price bridge
MP = FC + \text{Indirect taxes} - \text{Subsidies}
moving between factor cost and market price
Budget and fiscal policy
Fiscal deficit
FD = \text{Total Expenditure} - \text{Total Receipts (excl. borrowings)}
equals government borrowing requirement
Revenue deficit
RD = \text{Revenue Expenditure} - \text{Revenue Receipts}
revenue items only
Primary deficit
PD = FD - \text{Interest Payments}
strips out past borrowing costs