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Question
On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at factor cost (NDPFC):
| S.No. | Items | Amount (₹ in crore) |
| (i) | Household Consumption Expenditure | 2,000 |
| (ii) | Government Final Consumption Expenditure | 1,500 |
| (iii) | Gross Domestic Fixed Capital Formation | 1,000 |
| (iv) | Net additions to stock | 300 |
| (v) | Exports | 700 |
| (vi) | Net Indirect Taxes | 350 |
| (vii) | Imports | 200 |
| (viii) | Consumption of Fixed Capital | 250 |
Solution
NDPFC = GDPMP − Consumption of Fixed Capital − Net Indirect Taxes
= 5300 − 250 − 350
= 4700 crore
GDPMP = Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports
= 3500 + 1300 + 500
= 5300 crore
- Final Consumption Expenditure = Household Consumption Expenditure + Government Final Consumption Expenditure
= 2000 + 1500
= 3500 crore - Gross Domestic Capital Formation = Gross Domestic Fixed Capital Formation + Net addition to stocks
= 1000 + 300
= 1300 crore - Net export = Exports − Imports
= 700 − 200
= 500 crore.
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|
(ii) |
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