Calculate gross national product at factor cost from the following data by (a) income method and (b) expenditure method Wages and Salaries ₹ 800
Calculate gross national product at factor cost from the following data by (a) income method and (b) expenditure method.
| Particulars | ₹ in Crores |
| (i) Wages and Salaries | 800 |
| (ii) Mixed income of self-employed | 160 |
| (iii) Operating Surplus | 600 |
| (iv) Undistributed profits | 150 |
| (v) Gross Capital formation | 350 |
| (vi) Change in stocks | 25 |
| (vii) Net Capital Formation | 300 |
| (viii) Employer’s contribution to social security schemes | 100 |
| (ix) Net factor income from abroad | (-) 20 |
| (x) Exports | 30 |
| (xi) imports | 60 |
| (xii) Private final consumption expenditure | 1,000 |
| (xiii) Government final consumption expenditure | 450 |
| (xiv) Net indirect taxes | 60 |
| (xv) Compensation of employees paid by the Government | 75 |
Ans:- Gross National Product at Factor Cost = ₹ 1,670 Crores
Anurag Pathak Changed status to publish November 8, 2023
Solution:-
Calculation of Gross National Product at Factor Cost by Income Method
NDP at FC = Compensation of Employees (Wages and Salaries + Employers Contribution to Social Security Scheme) + Mixed income of self-employed + Operating Surplus
NDP at FC = (₹ 800 + ₹ 100) + ₹ 160 + ₹ 600
NDP at FC = ₹ 1660 Crores
GNP at FC = NDP at FC + Depreciation (Gross Capital Formation – Net Capital Formation) + Net Factor income from abroad
GNP at FC = ₹ 1660 + (₹ 330 – ₹ 300) + (-) ₹ 20
GNP at FC = ₹ 1670 Crores
Calculation of Gross National Product at Factor Cost by Expenditure Method
GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Capital Formation + Net Exports (Exports – Imports)
GDP at Mp = ₹ 1000 + ₹ 450 + ₹ 330 + (₹ 30 – ₹ 60)
GDP at MP = ₹ 1750 Crore
GNP at FC = GDP at MP + Net Factor income from abroad – Net indirect taxes
GNP at FC = ₹ 1750 + (-) ₹ 20 – ₹ 60
GNP at FC = ₹ 1670 Crore
Anurag Pathak Changed status to publish November 8, 2023
