Question

From the follow ing data, calculate GNP_MP and NNP_FC by Expenditure Method.

(i) Mixed-income of self-employed	450 crores
(ii) Compensation of employees	550 crores
(iii) Private final consumption expenditure	1000 crores
(iv) Net factor income from abroad	-20 crores
(v) Net indirect taxes	150 crores
(vi) Consumption of fixed capital	170 crores
(vii) Net domestic capital formation	380 crores
(viii) Net exports	-30 crores
(ix) Profits	400 crores
(x) Rent	150 crores
(xi) Interest	200 crores
(xii) Government final consumption expenditure	550 crores

Answer 1

Expenditure Method:

GDP_MP = Private final consumption expenditure + Government final consumption

expenditure + Gross Domestic Capital Formation + Net Export

1000 + 550 + (380 + 170) + (-30) = Rs 2,070 

NNP_FC = GDP_MP – Depreciation + NFIA – NIT

2070 – 170 + (-20) – 150 = Rs 1730