Calculate GNP at MP by Income and Expenditure Method Net Capital Formation ₹ 200
Calculate GNP at MP by Income and Expenditure Method
| Particulars | ₹ in Crores |
| (i) Net Capital Formation | 200 |
| (ii) Private final Consumption Expenditure | 1000 |
| (iii) Operating Surplus | 360 |
| (iv) Wages Salaries | 900 |
| (v) Employers’ contribution to social security schemes | 50 |
| (vi) Rent | 100 |
| (vii) Government final consumption expenditure | 300 |
| (viii)Consumption of fixed capital | 50 |
| (ix) Net indirect taxes | 200 |
| (x) Net factor income from abroad | (-) 10 |
| (xi) Net Exports | 10 |
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of GNP at MP by Income Method
NDP at FC = Compensation of Employees ( Wages and Salaries + Employer’s Contribution to social security Schemes) + Mixed Income + Operating Surplus
NDP at FC = (₹ 900 + ₹ 50) + ₹ 0 + ₹ 360
NDP at FC = ₹ 1310
GNP at MP = NDP at FC + Consumption of fixed capital + Net factor income from abroad + Net Indirect taxes
GNP at MP = ₹ 1310 + ₹ 50 + ₹ (-) 10 + ₹ 200
GNP at MP = ₹ 1550 Crores
Calculation of GNP at MP by Expenditure Method
GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Net Capital Formation + Consumption of fixed Capital + Net Exports
GDP at MP = ₹ 1,000 + ₹ 300 + ₹ 200 + ₹ 50 + ₹ 10
GDP at MP = ₹ 1,560
GNP at MP = GDP at MP + Net Factor income from abroad
GNP at MP = ₹ 1,560 + ₹ (-) 10
GNP at MP + ₹ 1,550 Crores
Anurag Pathak Changed status to publish November 9, 2023
