Calculate GDP at MP by Income method and National Income by Expenditure Method Compensation of employees ₹ 13000
Calculate GDP at MP by Income method and National Income by Expenditure Method.
| Particulars | ₹ in Crore |
| (i) Compensation of employees | 13000 |
| (ii) Indirect taxes | 3,700 |
| (iii) Gross fixed capital formation | 8,100 |
| (iv) Interest, rent, and Profit | 5,000 |
| (v) Government final consumption expenditure | 3,600 |
| (vi) Mixed income of self-employed | 16,000 |
| (vii) Change in stock | 1,000 |
| (viii) Imports of goods and services | 1,800 |
| (ix) Exports of goods and services | 1,700 |
| (x) Private final consumption expenditure | 27,000 |
| (xi) Subsidies | 300 |
| (xii) Net factor income from abroad | (-) 250 |
| (xiii) Consumption of fixed capital | 2,200 |
Ans: GDP at MP by Income Method = ₹ 39,600 Crores; and National Income by Expenditure Method = ₹ 33,750 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 + Interest, rent and Profit
NDP at FC = ₹ 13,000 + ₹ 16,000 + ₹ 5,000
NDP at FC = ₹ 34,000
GDP at MP = NDP at FC + Consumption of Fixed Capital + Net Indirect taxes (Indirect taxes – Subsidies)
GDP at MP = ₹ 34,000 + ₹ 2,200 + (₹ 3,700 – ₹ 300)
GDP at MP = ₹ 39,600 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 of goods and services – Imports of goods and services)
GDP at MP = ₹ 27,000 + ₹ 3,600 + ₹ 8,100 + ₹ 1,000 + (₹ 1,700 – ₹ 1,800)
GDP at MP = ₹ 39,600 Crores
NNP at FC (National Income) = GDP at MP – Consumption of fixed Capital + Net factor income from abroad – Net Indirect taxes (Indirect taxes – Subsidies)
NNP at FC (National Income) = ₹ 39,600 – ₹ 2,200 + (-) ₹ 250 – (₹ 3,700 – ₹ 300)
NNP at FC (National Income) = ₹ 33750 Crores
Anurag Pathak Changed status to publish November 8, 2023
