Calculate GDP at MP by Income Method and National Income by Expenditure Method Mixed Income of the self-employed ₹ 260
Calculate GDP at MP by Income Method and National Income by Expenditure Method.
| Particulars | ₹ in Crores |
| (i) Mixed Income of the self-employed | 260 |
| (ii) Rent, interest and profit | 290 |
| (iii) Interest on national debt | 40 |
| (iv) Government final consumption expenditure | 220 |
| (v) Imports | 170 |
| (vi) Exports | 140 |
| (vii) Private final consumption expenditure | 1,530 |
| (viii) Change in Stock | 100 |
| (ix) Compensation of employees | 730 |
| (x) Net factor income from the rest of the world | (-) 10 |
| (xi) Consumption of fixed capital | 120 |
| (xii) Subsidies | 30 |
| (xiii) Gross fixed capital formation | 400 |
| (xiv) Indirect taxes | 850 |
Ans: GDP at MP by Income Method = ₹ 2,220 Crores; NNP at FC by Expenditure Method = ₹ 1,270 Crores
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of GDP at MP by Income Method
NDP at FC = Compensation of employees + Mixed Income of Self-Employed + Rent, interest and profit
NDP at FC = ₹ 730 + ₹ 260 + ₹ 290
NDP at FC = ₹ 1,280
GDP at MP = NDP at FC + Consumption of fixed Capital + Net Indirect Taxes (Indirect Taxes – Subsidies)
GDP at MP = ₹ 1,280 + ₹ 120 + (₹ 850 – ₹ 30)
GDP at MP = ₹ 2,220 Crores
Calculation of National Income by Expenditure Method
GDP at MP = Private Final Consumption expenditure + Government Final consumption expenditure + Gross fixed capital formation + Change in stock + Net Exports (Exports – Imports)
GDP at MP = ₹ 1,530 + ₹ 220 + (₹ 400 + ₹ 100) + (₹ 140 – ₹ 170)
GDP at MP = ₹ 2,220 Crores
NNP at FC (National Income) = GDP at MP – Consumption of fixed Capital + Net Factor income from the rest of the world – Net Indirect Taxes (Indirect Taxes – Subsidies)
NNP at FC (National Income) = ₹ 2,220 – ₹ 120 + (-) ₹ 10 – (₹ 850 – ₹ 30)
NNP at FC (National Income) = ₹ 1,270 Crores
Anurag Pathak Changed status to publish November 8, 2023
