Question

Calculate GNP_mp using Income method and Expenditure method from the following data:

	Items	₹ (in Crore)
(i)	Private final consumption expenditure	800
(ii)	Net exports	20
(iii)	Rent	40
(iv)	Interest	60
(v)	Government final consumption expenditure	200
(vi)	Profit	120
(vii)	Net domestic capital formation	100
(viii)	Compensation of employees	800
(ix)	Net indirect taxes	100
(x)	Consumption of fixed capital	20
(xi)	Net factor income from abroad	(−) 30

Answer 1

Following Income method:

GNP_mp = (iii) + (iv) + (vi) + (viii) + (ix) + (x) + (xi)

= 40 + 60 + 120 + 800 + 100 + 20 + (−) 30

= ₹ 1110 Cr.

Following Expenditure method:

GNP_mp = (i) + (ii) + (v) + (vii) + (x) + (xi)

= 800 + 20 + 200 + 100 + 20 + (−) 30

= ₹ 1110 Cr.