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