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Question
Answer the following question.
From the follow ing data, calculate GNPMP and NNPFC by Expenditure Method.
| (i) Mixed-income of self-employed | 450 crores |
| (ii) Compensation of employees | 550 crores |
| (iii) Private final consumption expenditure | 1000 crores |
| (iv) Net factor income from abroad | -20 crores |
| (v) Net indirect taxes | 150 crores |
| (vi) Consumption of fixed capital | 170 crores |
| (vii) Net domestic capital formation | 380 crores |
| (viii) Net exports | -30 crores |
| (ix) Profits | 400 crores |
| (x) Rent | 150 crores |
| (xi) Interest | 200 crores |
| (xii) Government final consumption expenditure | 550 crores |
Solution
Expenditure Method:
GDPMP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic Capital Formation + Net Export
1000 + 550 + (380 + 170) + (-30) = ₹ 2,070
NNPFC = GDPMP – Depreciation + NFIA – NIT
2070 – 170 + (-20) – 150 = ₹ 1730
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