Question

Calculate GNP_MP and NNP_Fc 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

Answer 1

GDP_MP = 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

NNP_FC = GDP_MP + Consumption of fixed Capital (Depreciation) + NFIA − NIT

= 2,370 − 270 + (−120) − 250

= 1,730 crores

GNP_MP = GDP_MP + NFIA

= 2,370 + (−120)

= 2,250 crores

The Gross National Product at market prices (GNP_MP) is ₹ 2,250 crores and the Net National Product at factor cost (NNP_FC) is ₹ 1,730 crores, based on the provided data and using the Expenditure Method.