From the following information, Calculate GNP at MP by Income and Expenditure Methods Personal Consumption Expenditure ₹ 2,940
From the following information, Calculate GNP at MP by Income and Expenditure Methods.
| Particulars | ₹ in Crores |
| (i) Personal Consumption Expenditure | 2,940 |
| (ii) Social Security Contribution by Employers | 108 |
| (iii) Net indirect taxes | 216 |
| (iv) Interest | 156 |
| (v) Government expenditure on goods and services | 864 |
| (vi) Rent | 168 |
| (vii) Undistributed profits | 252 |
| (viii) Dividends | 192 |
| (ix) Wages and Salaries in Cash | 2,544 |
| (x) Tax on corporate profits | 228 |
| (xi) Net Domestic investment | 396 |
| (xii) Depreciation | 324 |
| (xiii) Net Exports | 36 |
| (xiv) Income of the self-employed | 372 |
| (xv) Net factor income from abroad | 15 |
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of GNP at MP by Income and Expenditure Method
GDP at MP = Personal Consumption Expenditure + Government expenditure on goods and services + Gross Domestic Capital Formation (Net Domestic Investment + Depreciation) + Net exports
GDP at MP = ₹ 2,940 + ₹ 864 + (₹ 396 + ₹ 324) + 36
GDP at MP = ₹ 4560
GNP at MP = GDP at MP + Net Factor income from abroad
GNP at MP = ₹ 4560 + ₹ 15
GNP at MP = ₹ 4575
Anurag Pathak Changed status to publish November 7, 2023
