From the follow ing data, calculate GNPMP and NNPFC by Expenditure Met

1.	From the follow ing data, calculate GNPMP and NNPFC by Expenditure Method.(i) Mixed-income of self-employed450 crores(ii) Compensation of employees550 crores(iii) Private final consumption expenditure1000 crores(iv) Net factor income from abroad-20 crores(v) Net indirect taxes150 crores(vi) Consumption of fixed capital170 crores(vii) Net domestic capital formation380 crores(viii) Net exports-30 crores(ix) Profits400 crores(x) Rent150 crores(xi) Interest200 crores(xii) Government final consumption expenditure550 crores
Answer» Expenditure Method: GDP_MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic Capital Formation + Net Export 1000 + 550 + (380 + 170) + (-30) = Rs 2,070 NNP_FC = GDP_MP – Depreciation + NFIA – NIT 2070 – 170 + (-20) – 150 = Rs 1730

From the follow ing data, calculate GNPMP and NNPFC by Expenditure Method.(i) Mixed-income of self-employed450 crores(ii) Compensation of employees550 crores(iii) Private final consumption expenditure1000 crores(iv) Net factor income from abroad-20 crores(v) Net indirect taxes150 crores(vi) Consumption of fixed capital170 crores(vii) Net domestic capital formation380 crores(viii) Net exports-30 crores(ix) Profits400 crores(x) Rent150 crores(xi) Interest200 crores(xii) Government final consumption expenditure550 crores

Answer»

Expenditure Method:

GDP_MP = Private final consumption expenditure + Government final consumption

expenditure + Gross Domestic Capital Formation + Net Export

1000 + 550 + (380 + 170) + (-30) = Rs 2,070

NNP_FC = GDP_MP – Depreciation + NFIA – NIT

2070 – 170 + (-20) – 150 = Rs 1730