1.

Calculate NNPFC by Income method and expenditure methods.ItemsRs.in Crores(a) Compensation of employees 250(b) Govt. final consumption expenditure250(c) Indirect taxes 20(d) Gross fixed capital formation75 (e) Operating surplus360(f) Changes in stock60 (g) Imports64(h) Exports130 (i) Net factor income from abroad25(j) Subsidies5(k) Mixed income of self employed16 (l) Consumption of fixed capital 10(m) Private final consumption expenditure200(n) Interest on national debt20

Answer»

i) NNPFC by income Method:

= Compensation of employees + Operating surplus + Mixed income of self- employed + Net factor income from abroad

= 250 + 360 + 16 + 25 

= 651 Rs. Crores.

ii) NNPFC by Expenditure Method:

Step I: GDPMP = Private final consumption exp. + Govt. final Consumption exp. + Gross fixed capital formation + changes in stock + Exports–Imports

= 200 + 250 + 75 + 60 + 130 – 64 

= 715 – 64 

= 651 Rs. in Crores

Step II: NNPFC = GDPMP - Depreciation + Net factor income from abroad – Indirect taxes + subsidies

 651 – 10 – 25 – 20 + 5

= 681 – 30 

= 651 Rs. in Crores.


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