# Calculate Gross National Product at Factor Cost by (i) Income Method, and (ii) Expenditure Method, from the following data Private Final Consumption Expenditure ₹ 800

Calculate Gross National Product at Factor Cost by (i) Income Method, and (ii) Expenditure Method, from the following data.

Particulars | ₹ in Crores |

(i) Private Final Consumption Expenditure | 800 |

(ii) Government Final Consumption Expenditure | 300 |

(iii) Compensation of Employees | 600 |

(iv) Net Imports | 50 |

(v) Gross Domestic Capital Formation | 150 |

(vi) Consumption of Fixed Capital | 20 |

(vii) Net Indirect Taxes | 100 |

(viii) Net Factor Income from Abroad | (-) 70 |

(ix) Dividend | 150 |

(x) Rent | 120 |

(xi) Interest | 80 |

(xii) Undistributed Profits | 80 |

(xiii) Social Security Contribution by Employers | 60 |

(xiv) Corporate Tax | 50 |

Ans:- Gross National Product at Factor Cost (Income Method) – ₹ 1,030 Crores, Gross National Product at Factor Cost (Expenditure Method) – ₹ 1,030 Crores

Solution:-

**Calculation of Gross National Product at Factor Cost by Income Method**

NDP at FC = Compensation of Employees + Rent + Interest + Profits (Corporate Tax + dividend + Undistributed Profits)

NDP at FC = ₹ 600 + ₹ 120 + ₹ 80 + (₹ 50 + ₹ 150 + ₹ 80)

NDP at FC = ₹ 1080 Crores

GNP at FC = NDP at FC + Consumption of Fixed Capital + Net Factor Income from Abroad

GNP at FC = ₹ 1080 + ₹ 20 + ₹ (-) 70

**GNP at FC = ₹ 1,030 Crores**

**Calculation of Gross National Product at Factor Cost by Expenditure Method**

GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation – Net Imports

GDP at MP = ₹ 800 + ₹ 300 + ₹ 150 – ₹ 50

GDP at MP = ₹ 1,200 Crores

GNP at FC = GDP at MP + Net Fator Income from Abroad – Net Indirect Taxes

GNP at FC = ₹ 1,200 + ₹ (-) 70 – ₹ 100

**GNP at FC = ₹ 1,030 Crores**