Calculate GDP at MP by Income Method and National Income by Expenditure Method Compensation of employees ₹ 490
Calculate GDP at MP by Income Method and National Income by Expenditure Method.
| Particulars | ₹ in crores |
| (i) Compensation of employees | 490 |
| (ii) Private final consumption expenditure | 1120 |
| (iii) Net factor income from the rest of the world | – 10 |
| (iv) Net fixed capital formation | 180 |
| (v) Consumption of fixed capital | 80 |
| (vi) Indirect taxes | 180 |
| (vii) Current transfers from government to households | 20 |
| (viii) Change in Stock | 60 |
| (ix) Mixed income of the self-employed | 560 |
| (x) Government final consumption expenditure | 150 |
| (xi) Subsidies | 20 |
| (xii) Exports | 100 |
| (xiii) Imports | 110 |
| (xiv) Rent, interest and profit | 290 |
Ans: GDP at MP by Income Method = ₹ 1,580 crores; and National Income by Expenditure Method = ₹ 1,330 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 = ₹ 490 + ₹ 560 + ₹ 290
NDP at FC = ₹ 1,340
GDP at MP = NDP at FC + Consumption of fixed capital + Net indirect taxes (Indirect taxes – Subsidies)
GDPat MP = ₹ 1,340 + ₹ 80 + (₹ 180 – ₹ 20)
GDP at MP = ₹ 1,580 Crores
Calculation of National Income by Expenditure Method
NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net fixed capital formation + change in stock + Net Exports (Exports – Imports)
NDP at MP = ₹ 1,120 + ₹ 150 + ₹ 180 + ₹ 60 + (₹ 100 – ₹ 110)
NDP at MP = ₹ 1,500
NNP at FC (National Income) = NDP at MP + Net Factor income from the rest of the world – Net indirect taxes (Indirect taxes – Subsidies)
NNP at FC (National Income) = ₹ 1,500 + (-) 10 – (₹ 180 – ₹ 20)
NNP at FC (National Income) = ₹ 1330 Crores
Anurag Pathak Changed status to publish November 8, 2023
