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Question
Calculate GNPMP and NNPFc from the following data by Expenditure Method.
| PARTICULARS | (₹ crores) | |
| (i) | Mixed income of self employed | 550 |
| (ii) | Private Final Consumption Expenditure | 1100 |
| (iii) | Net factor income from abroad | (-)120 |
| (iv) | Net indirect taxes | 250 |
| (v) | Consumption of fixed capital | 270 |
| (vi) | Net domestic capital formation | 480 |
| (vii) | Net exports | (-)130 |
| (viii) | Interest | 300 |
| (ix) | Government Final Consumption Expenditure | 650 |
Solution
GDPMP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation + consumption of fixed Capital + Net Exports
= 1,100 + 650 + 480 + 270 + (−130)
= 2,370
NNPFC = GDPMP + Consumption of fixed Capital (Depreciation) + NFIA − NIT
= 2,370 − 270 + (−120) − 250
= 1,730 crores
GNPMP = GDPMP + NFIA
= 2,370 + (−120)
= 2,250 crores
The Gross National Product at market prices (GNPMP) is ₹ 2,250 crores and the Net National Product at factor cost (NNPFC) is ₹ 1,730 crores, based on the provided data and using the Expenditure Method.
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