Question

Estimate GDP at factor cost by expenditure and income methods from data given below.

Heads	Amount in Rs. crores
1. Compensation of employees	35290
2. Govt. final consumption expenditure	11041
3. Private final consumption expenditure	71366
4. Operating surplus	15794
5. Gross fixed capital formation	21001
6. Change in stocks	5143
7. Mixed income of self employed	37135
8. Consumption of fixed capital	6651
9. Net indirect taxes	12203
10. Net exports	–1478

Answer 1

Expenditure method

GDP_fc = (2) + (3) + (5) + (6) + (10) – (9) 

= 11041 + 71366 + 21001 + 5143 + (–1478) – 12203 

= Rs. 94870 crores.

Income method

GDP_fc = (1) + (4) + (7) + (8) 

= 35290 + 15794 + 37135 + 6651 

= Rs. 94870 crores.