Calculate NNP at FC by Income Method and Expenditure Method Mixed income of self-employed ₹ 100
Calculate NNP at FC by Income Method and Expenditure Method
Particulars | ₹ in Crores |
(i) Mixed income of self-employed | 100 |
(ii) Gross fixed capital formation | 300 |
(iii) Private final consumption expenditure | 900 |
(iv) Net exports | (-) 50 |
(v) Subsidies | 50 |
(vi) Government final consumption expenditure | 150 |
(vii) Rent | 60 |
(viii) Indirect taxes | 250 |
(ix) Interest | 200 |
(x) Change in Stocks | 50 |
(xi) Compensation of Employees | 400 |
(xii) Profit | 340 |
(xiii) Consumption of fixed Capital | 50 |
(xiv) Net factor income from abroad | 50 |
Ans: NNP at FC = ₹ 1,150 Crores
Solution:-
Calculation of NNP at FC by Income Method
NDP at FC = Compensation of Employees + Mixed Income of Self-Employed + Rent + Interest + Profit
NDP at FC = ₹ 400 + ₹ 100 + ₹ 60 + ₹ 200 + ₹ 340
NDP at FC = ₹ 1100
NNP at FC = NDP at FC + Net factor income from abroad
NNP at FC = ₹ 1100 + ₹ 50
NNP at FC = ₹ 1150
Calculation of NNP at FC by Expenditure Method
GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Fixed Capital Formation + Change in Stocks + Net Exports
GDP at MP = ₹ 900 + ₹ 150 + ₹ 300 + ₹ 50 + ₹ (-) 50
GDP at MP = ₹ 1350 Crores
NNP at FC = GDP at MP – Consumption of fixed Capital + Net Factor income from abroad – Net Indirect taxes (Indirect taxes – Subsidies)
NNP at FC = ₹ 1,350 – ₹ 50 + ₹ 50 – (₹ 250 – ₹ 50)
NNP at FC = ₹ 1150 Crores