50 Important Numerical of Expenditure Method (National Income) with solutions class 12 CBSE Board

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Formula of Expenditure Method to Calculate National Income

important numerical of expenditure method of national income class 12 cbse board

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I am solving some very important numerical of expenditure method with board examination point of view.

1 Calculate Net National Product at Market Price:

Items(₹ in crore)
1. Gross domestic fixed capital formation400
2. Private final consumption expenditure8000
3. Government final consumption expenditure3000
4. Change in Stock50
5. consumption of fixed capital40
6. Net indirect taxes100
7. Net exports– 60
8. Net factor income to abroad– 80
9. Net current transfers from abroad100
10. Dividend100

[CBSE Delhi – 2017]

Solution:-

Gross Domestic Capital Formation = Gross Domestic fixed capital formation + change in stock

Gross Domestic Capital Formation = 400 + 50 = ₹450

GDP at MP = Private Final consumption expenditure + Government Final Consumption Expenditure + Gross domestic capital formation + Net Exports

GDP at MP = 8000 + 3000 + 450 – 60

GDP at MP = ₹11390

NNP at MP = GDP at MP – consumption of fixed capital + NFIA

NNP at MP = 11390 – 40 – (- 80) = ₹11430

2. Calculate National Income

Items(₹ in crore)
1. Net factor income to abroad– 50
2. Net indirect taxes800
3. Net current transfers from rest of the world100
4. Net imports200
5. Private final consumption expenditure5000
6. Government final consumption expenditure3000
7. Gross domestic capital formation1000
8. consumption of fixed capital150
9. change in stock– 50
10. Mixed income4000
11. Scholarship to students80

[CBSE Delhi – 2017]

Solution:-

GDP at MP = Private Final consumption expenditure + Government Final Consumption Expenditure + Gross domestic capital formation + Net Exports

GDP at MP = 5000 + 3000 + 1000 + (- 200) = ₹8800

National Income = NNP at FC = GDP at MP – consumption of fixed capital – Net Indirect tax + NFIA

National Income = 8800 – 150 – 800 + 50 = ₹7900 crore

3. Calculate Net Domestic Product at Factor Cost

Items(₹ in crore)
1. Private final consumption expenditure8000
2. Government final consumption expenditure1000
3. Exports70
4. Imports120
5. Consumption of fixed capital60
6. Gross domestic fixed capital formation500
7. Change in stock100
8. Factor income to abroad40
9. Factor income from abroad90
10. Indirect taxes700
11. Subsidies50
12. Net Current transfers to abraod(-) 30

[CBSE Delhi – 2017]

Solution:-

Gross Domestic Capital Formation = Gross Domestic Fixed capital formation + Change in stock

Gross Domestic Capital Formation = 500 + 100 = ₹600

GDP at MP = Private Final consumption expenditure + Government Final Consumption Expenditure + Gross domestic capital formation + Net Exports (Exports – Imports)

GDP at MP = 8000 + 1000 + 600 + (70 – 120) = ₹9550

NDP at FC = GDP at MP – consumption of fixed capital – Net indirect tax (Indirect tax – subsidies)

NDP at FC = 9550 – 60 – (700 – 50) = ₹8840 crore

4. Calculate National Income

Items(₹ in crore)
1. Corporation tax100
2. Private final consumption expenditure900
3. Personal income tax120
4. Government final consumption expenditure200
5. Undistributed profits50
6. Change in stocks– 20
7. Net Domestic fixed capital formation120
8. Net Imports10
9. Net Indirect tax150
10. Net factor income from abroad– 10
11. Private Incom1000

[CBSE (AI) 2016]

Solution:-

Gross Domestic Fixed capital formation = Net domestic fixed capital formation + consumption of fixed capital formation

Gross Domestic Fixed Capital Formation = 120 + 0 = 120

Gross Domestic Capital Formation = Gross Domestic Fixed capital formation + Change in stock

Gross Domestic Capital Formation = 120 + ( – 20) = ₹100

GDP at MP = Private Final consumption expenditure + Government Final Consumption Expenditure + Gross domestic capital formation + Net Exports (Exports – Imports)

GDP at MP = 900 + 200 + 100 + ( – 10) = ₹1190

National Income = NNP at FC = GDP at MP – Consumption of fixed capital + NFIA – Net Indirect tax

National Income = 1190 – 0 + (- 10) – 150 = ₹1030 crore

Further Resources:-

Read Here:- 50+ Numerical of Income Method of National Income (Must Do)

Read Here:- 50+ Numerical of Value Added Method of National Income (Must Do)

5. Calculate Net National Product at Market Price:

Items(₹ in crore)
1. Net Current transfers to abroad10
2. Private final consumption expenditure500
3. Current transfers from government30
4. Net factor income to abroad20
5. Net exports– 20
6. Net indirect tax120
7. National debt interest70
8. Net Domestic Capital formation80
9. Income accruing to government60
10. Government final consumption expenditure100

[CBSE (AI) 2016]

Solution:-

Gross Domestic capital formation = Net domestic capital formation + consumption of fixed capital formation

Gross Domestic Capital Formation = 80 + 0 = ₹80

GDP at MP = Private Final consumption expenditure + Government Final Consumption Expenditure + Gross domestic capital formation + Net Exports (Exports – Imports)

GDP at MP = 500 + 100 + 80 + (- 20) = ₹660

NNP at MP = GDP at MP – consumption of fixed capital + NFIA

NNP at MP = 660 – 0 – 20 = ₹ 640 crore

6. Find Gross National Product at Market Price:

Items(₹ in crore)
1. Private final consumption expenditure800
2. Net Current transfers to abroad20
3. Net factor income to abroad– 10
4. Government final consumption expenditure300
5. Net Indirect tax150
6. Net Domestic Capital Formation200
7. Current transfers from government40
8. Depreciation100
9. Net Imports30
10. Income accruing to government90
11. National debt interest50

Solution:-

Gross Domestic Capital Formation = Net Domestic Capital Formation + Depreciation

Gross Domestic Capital Formation = 200 + 100 = ₹ 300

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic Capital Formation – Net Imports

GDP at MP = 800 + 300 + 300 – 30

GDP at MP = ₹ 1370

GNP at MP = GDP at MP – Net factor income to abroad

GNP at MP = 1370 – ( – 10)

GNP at MP = ₹ 1380 crore

7. Calculate National Income

Items(₹ in crore)
1. Net imports5
2. Net domestic capital formation15
3. Personal Income90
4. National debt interest10
5. Corporate tax25
6. Government final consumption expenditure20
7. Net factor income to abroad– 5
8. Net indirect tax10
9. Undistributed profits0
10. Private final consumption expenditure100

[CBSE (F) 2015]

Solution

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation – net imports

NDP at MP = 100 + 20 + 15 – 5

NDP at MP = 130

National Income (NNP at FC) = NDP at MP – Net factor income to abroad – Net indirect tax

NNP at FC = 130 – (- 5) – 10

NNP at FC = ₹ 125 crore

8. Calculate Net Domestic Product at Market Price.

Items(₹ in crore)
1. Private Final consumption expenditure400
2. Opening stock10
3. Consumption of fixed capital25
4. Imports15
5. Government final consumption expenditure90
6. Net current transfers to rest of the world5
7. Gross domestic fixed capital formation80
8. Closing stock20
9. Exports10
10. Net factor income to abroad– 5

[CBSE AI 2015]

Solution

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic Fixed Capital formation + Closing stock – Opening stock + Net Exports (Exports – Imports)

GDP at MP = 400 + 90 + 80 + (20 – 10) + ( 10 – 15 )

GDP at MP = 575

NDP at MP = GDP at MP – Consumption for fixed capital

NDP at MP = 575 – 25

NDP at MP = ₹ 550

9. Calculate Net National Product at Market Price

Items(₹ in crore)
1. Transfers Payments by government7
2. Government final consumption expenditure50
3. Net imports– 10
4. Net domestic fixed capital formation60
5. Private final consumption expenditure300
6. Private Income280
7. Net factor income to abroad– 5
8. Closing Stock8
9. Opening stock8
10. Depreciation12
11. Corporate tax60
12. Retained earnings of corporations20

[CBSE AI 2015]

Solution

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net Domestic Fixed Capital formation + Closing stock – Opening stock – Net Imports

NDP at MP = 300 + 50 + 60 + 8 – 8 – ( – 10)

GDP at MP = 420

NNP at MP = NDP at MP – Net Factor income to abroad

NNP at MP = 420 – (-5)

NNP at MP = ₹ 425 crore

10. Calculate Net Domestic Product at Factor Cost:

Items(₹ in crore)
1. Net Current transfers to abroad15
2. Private final consumption expenditure800
3. Net imports– 20
4. Net domestic capital formation100
5. Net factor income to abroad10
6. Depreciation50
7. Change in stocks17
8. Net indirect tax120
9. Government final consumption expenditure200
10. Exports30

[CBSE DELHI 2015]

Solution

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation – Net imports

NDP at MP = 800 + 200 + 100 – (-20)

NDP at MP = 1120

NDP at FC = NDP at MP – Net Indirect tax

NDP at FC = 1120 – 120

NDP at FC = ₹ 1000 Crore

Read Here:- 50 Important Numerical of Value Added Method of National Income Class 12

Read Here:- 50 Important Numerical of Income Method of National Income class 12

11. Calculate ‘National Income’.

Items(₹ in crore)
1. Personal tax80
2. Private final consumption expenditure600
3. Undistributed profits30
4. Private Income650
5. Government final consumption expenditure100
6. Corporate tax50
7. Net Domestic fixed capital formation70
8. Net Indirect tax60
9. Depreciation14
10. Change in stocks– 10
11. Net imports20
12. Net factor income to abroad10

[CBSE DELHI 2015]

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net Domestic fixed capital formation + change in stocks – Net imports

NDP at MP = 600 + 100 + 70 + (- 10) – 20

NDP at MP = 740

NNP at FC = NDP at MP – Net Factor income to abroad – Net Indirect tax

NNP at FC = 740 – 10 – 60

NNP at FC = ₹ 670 crore

12. Calculate ‘National Income’ from the following

Items(₹ in crore)
1. Net Imports60
2. Net current transfers to abroad– 10
3. Net domestic fixed capital formation300
4. Government final consumption expenditure200
5. Private final consumption expenditure700
6. Consumption of fixed capital70
7. Net change in stocks30
8. Net factor income to abroad20
9. Net indirect tax100

[CBSE F 2014]

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net Domestic fixed capital formation + change in stocks – Net imports

NDP at MP = 700 + 200 + 300 + 30 – 60

NDP at MP = 1170

NNP at FC = NDP at MP – Net factor income to abroad – Net Indirect tax

NNP at FC = 1170 – 20 – 100

NNP at FC = ₹ 1050

13. Calculate ‘Net National Product at Market Price’ from the following.

Items(₹ in crore)
1. Closing stock10
2. Consumption of fixed capital40
3. Private final consumption expenditure600
4. Exports50
5. Opening stock20
6. Government final consumption expenditure100
7. Imports60
8. Net domestic fixed capital formation80
9. Net current transfers to abroa– 10
10. Net factor income to abroad30

[CBSE AI 2014]

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net domestic fixed capital formation + (closing stock – Opening stock) + Net Exports (Exports – Imports)

NDP at MP = 600 + 100 + 80 + (10 – 20) + (50 – 60)

NDP at MP = 760

NNP at MP = NDP at MP – Net factor income to abraod

NNP at MP = 760 – 30

NNP at MP = ₹ 730

14. Calculate National Income from the following.

Items(₹ in crore)
1. Net change in stocks50
2. Government final consumption expenditure100
3. Net current transfers to abroad30
4. Gross domestic fixed capital formation200
5. Private final consumption expenditure500
6. Net imports40
7. Depreciation70
8. Net factor income to abroad– 10
9. Net Indirect tax120
10. Net capital transfers to abroad25

Solution:-

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + Net change in stocks – Net imports

GDP at MP = 500 + 100 + 200 + 50 – 40

GDP at MP = 790

NNP at FC = GDP at MP – Depreciation – Net factor income to abroad – Net Indirect tax

NNP at FC = 790 – 70 – (-10) – 120

NNP at FC = ₹ 630 crore

15. Calculate ‘Net Domestic Product at Factor Cost’ from the following:-

Items(₹ in crore)
1. Net Current transfers to abroad5
2. Government final consumption expenditure100
3. Net indirect tax80
4. Private final consumption expenditure300
5. Consumption of fixed capital20
6. Gross domestic fixed capital formation50
7. Net imports– 10
8. Closing stock25
9. Opening stock25
10. Net factor income to abroad10

[CBSE DELHI 2014]

Solution:-

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic fixed capital formation + (Closing stock – Opening stock) – Net imports

GDP at MP = 300 + 100 + 50 + (25 – 25) – (- 10)

GDP at MP = 460

NDP at FC = GDP at MP – Consumption of fixed capital – Net indirect tax

NDP at FC = 460 – 20 – 80

NDP at FC = ₹ 360 crore

16. Calculate National Income from the following:

Items(₹ in crore)
1. Net current transfers to abroad– 15
2. Private final consumption expenditure600
3. Subsidies20
4. Government final consumption expenditure100
5. Indirect tax120
6. Net imports20
7. Consumption of fixed capital35
8. Net change in stocks– 10
9. Net factor income to abroad5
10. Net domestic capital formation110

[CBSE DELHI 2014]

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net Domestic capital formation – Net imports

NDP at MP = 600 + 100 + 110 – 20

NDP at MP = 790

NNP at FC = NDP at FC – Net factor income to abroad – (Indirect tax – subsidies)

NNP at FC = 790 – 5 – (120 – 20)

NNP at FC = 785 – 100

NNP at FC = ₹ 685 crore

17. Calculate Gross Fixed Capital Formation from the following data:-

Items(₹ in crore)
1. Private final consumption expenditure1000
2. Government final consumption expenditure 500
3. Net Exports– 50
4. Net Factor income from abroad20
5. Gross Domestic product at market price2500
6. Opening Stock300
7. Closing Stock200

Solution:-

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic capital formation + Net Exports

2500 = 1000 + 500 + Gross Domestic Capital Formation – 50

Gross Domestic Capital Formation = ₹ 1050

Gross Domestic Capital Formation = Gross Fixed Domestic Capital Formation + Change in stock (Closing Stock – Opening Stock)

1050 = Gross Fixed Domestic Capital Formation + (200 – 300)

Gross Fixed Domestic Capital Formation = 1050 + 100

Gross Fixed Domestic Capital Formation = ₹ 1150 crore

18. Find NDP at FC from the following data.

Items(₹ in crore)
1. Gross Domestic fixed investment10000
2. Inventory investment5000
3. Depreciation2000
4. Indirect taxes1000
5. Subsidies2000
6. Consumption Expenditure20000
7. Residential Construction Investment6000

Solution:-

GDP at MP = Consumption Expenditure + Gross Domestic Fixed Investment + Inventory Investment

GDP at MP = 20000 + 10000 + 5000

GDP at MP = ₹ 35000

NDP at FC = GDP at MP – Depreciation – (Indirect taxes – Subsidies)

NDP at FC = 35000 – 2000 – (1000 – 2000)

NDP at FC = ₹ 34000 crore

19. From the following data, calculate the GDP at both (a) Market price, and (b) Factor Cost.

Items(₹ in crore)
1. Gross investment90
2. Net exports10
3. Net indirect taxes5
4. Depreciation15
5. Net factor income from abroad– 5
6. Private consumption expenditure350
7 Government purchases of goods and services100

Solution:-

GDP at MP = Private consumption expenditure + Government purchases of goods and services + Gross Investment + net exports

GDP at MP = 350 + 100 + 90 + 10

GDP at MP = ₹ 550 crore

GDP at FC = GDP at MP – Net Indirect taxes

GDP at FC = 550 – 5

GDP at FC = ₹ 545 crore

20. Calculate the gross national product at factor cost from the following data:-

Items(₹ in crore)
1. Net Domestic Fixed capital formation350
2. Closing Stock100
3. Government final consumption expenditure200
4. Net indirect tax50
5. Opening stock60
6. Consumption of fixed capital50
7. Net exports– 10
8. Private final consumption expenditure1500
9. Imports20
10. Net factor income from abroad– 10

Solution:-

Gross Domestic capital formation = net domestic fixed capital formation + consumption of fixed capital + Closing stock – Opening stock

Gross Domestic Capital formation = 350 + 50 + 100 – 60

Gross Domestic Capital formation = ₹ 440

GDP at MP = Private Final Consumption Expenditure + Government final consumption expenditure + Gross Domestic capital formation + net exports

GDP at MP = 1500 + 200 + 440 – 10

GDP at MP = ₹ 2130

Gross National Product at FC (GNP at FC) = GDP at MP + Net factor income from abroad – Net Indirect tax

GNP at FC = 2130 – 10 – 50

GNP at FC = ₹ 2070 crore

21. Calculate Gross Domestic Product at market price from the following data:-

Items(₹ in crore)
1. Consumption of fixed capital50
2. Closing stock40
3. Private final consumption expenditure500
4. Opening stock60
5. Net factor income from abroad– 35
6. Exports25
7. Government final consumption expenditure200
8. Imports40
9. Net indirect tax100
10. net domestic capital formation300

Solution:-

Gross Domestic Capital Formation = Net Domestic Capital Formation + consumption of fixed capital

Gross Domestic capital formation = 300 + 50 = ₹ 350

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross domestic capital formation + Net Exports (Exports – Imports)

GDP at MP = 500 + 200 + 350 + (25 – 40)

GDP at MP = ₹ 1035 crore

22. Calculate national income from the following data:-

Items(₹ in crore)
1. Gross Domestic capital formation100
2. Net change in stocks10
3. Consumption of fixed capital20
4. Private final consumption expenditure500
5. Government final consumption expenditure200
6. Exports80
7. Imports70
8. Net indirect tax60
9. Net factor income received from abroad– 10

Solution:-

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic capital formation + exports – imports

GDP at MP = 500 + 200 + 100 + 80 – 70

GDP at MP = 810

NNP at FC = GDP at MP – consumption of fixed capital + Net factor income received from abroad – Net indirect tax

NNP at FC = 810 – 20 – 10 – 60

NNP at FC = ₹ 720 crore

23. Calculate NNP at MP from the following data:-

Items(₹ in crore)
1. Household final consumption expenditure1000
2. Net domestic fixed capital formation100
3. Government final consumption expenditure200
4. Final consumption expenditure of private non-profit institutions serving households50
5. Net change in stocks40
6. Net exports– 20
7. Net factor income from abroad10
8. Indirect tax70
9. Subsidies20

Solution:-

NDP at MP = Household final consumption expenditure + Final consumption expenditure of private non profit institutions serving households + Government final consumption expenditure + Net domestic fixed capital formation + net change in stocks + net exports

NDP at MP = 1000 + 50 + 200 + 100 + 40 – 20

NDP at MP = 1370

NNP at MP = NDP at MP + Net factor income from abroad

NNP at MP = 1370 + 10

NNP at MP = 1380 crore

24. Calculate GNP at MP from the following data:-

Items(₹ in crore)
1. Government final consumption expenditure300
2. Net domestic fixed capital formation200
3. Private final consumption expenditure2000
4. Consumption of fixed capital40
5. Closing stock50
6. Opening stock40
7. Net exports– 5
8. Net indirect tax30
9. Net factor income from abroad– 10

Solution:-

Gross Domestic capital formation = Net domestic fixed capital formation + consumption of fixed capital + closing stock – opening stock

Gross Domestic capital formation = 200 + 40 + 50 – 40

Gross Domestic Capital formation = 250

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + G- ross Domestic capital formation + Net exports

GDP at MP = 2000 + 300 + 250 – 5

GDP at MP = 2545

GNP at MP = GDP at MP + Net factor income from abroad

GNP at MP = 2545 – 10

GNP at MP = ₹ 2535 crore

25. Calculate NVA at FC from the following data:-

Items(₹ in crore)
1. Indirect tax60
2. Closing stock100
3. Sales1000
4. Intermediate cost420
5. Opening stock80
6. Consumption of fixed capital50
7. Subsidies10

Solution:-

Value of output = Sales + closing stock – opening stock

Value of output = 1000 + 100 – 80

Value of output = 1020

NVA at MP = Value of Output – Intermediate cost

NVA at MP = 1020 – 420

NVA at MP = 600

NVA at FC = NVA at MP – (Indirect tax – subsidies)

NVA at FC = 600 – 60 + 10

NVA at FC = ₹ 550 crore

26. Find value added by firm X from the following data:-

Items(₹ in crore)
1. Sales by firm X to firm Z200
2. Purchases by firm Y form firm X100
3. Sale by firm Z to firm X150
4. Closing stock of firm X40
5. Closing stock of firm Z30
6. Opening stock of firm X50

Solution:-

Value of output of firm X = Sales by firm X to firm Z + Purchases by firm Y from firm X + closing stock of firm X – Opening stock of firm X

Value of output of firm X = 200 + 100 + 40 – 50

Value of output of firm X = 290

Value added by firm X = Value of output of firm X – Sale by firm Z to firm X

Value added by firm X = 290 – 150

Value added by firm X = ₹ 140

27. A Farmer purchases ₹ 1,000 worth of seeds, ₹ 2000 worth of fertilisers, and pays ₹ 1500 as water charges to raise a wheat crop. He produces 50 quintals of wheat and sells the same at ₹ 200 per quintal. Calculate value added by the farmer.

Solution:-

farmer Value of Output = quantity * price = 50 * 200 = 10000

Intermediate consumption of farmer = seeds + fertilisers + water charges

Intermediate consumption of farmer = 1000 + 2000 + 1500

Intermediate consumption of farmer = 4500

Value added by farmer = Value of output – Intermediate consumption

Value added by farmer = 10000 – 4500

Value added by farmer = ₹ 5500

28. There are two firms A and B. A buys, ₹ 200 worth of raw materials from B. B buys ₹ 300 worth of raw materials from A. The value of total output of firm A is ₹ 1000 and that of B is ₹ 1,500. Find out value added by A and B. What measure of Value added is this?

Solution:-

Value added by firm A = value of output – purchase of raw material by firm A from B

Value added by firm A = 1000 – 200 = ₹ 800

Value added by firm B = Value of Output – purchase of raw material by firm B form A

Value added by firm B = 1500 – 300

Value added by firm B = ₹ 1200

29. Calculate NDP at factor cost:-

Items(₹ in crore)
1. Net domestic fixed capital formation70
2. Private final consumption expenditure300
3. Exports20
4. Consumption of fixed capital10
5. Government final consumption expenditure100
6. Closing stock15
7. Imports30
8. Opening stock5
9. Net indirect tax80
10. Net factor income to abroad– 10

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net domestic fixed capital formation + Closing stock – Opening stock + Net Exports (Exports – Imports)

NDP at MP = 300 + 100 + 70 + 15 – 5 + (20 – 30)

NDP at MP = ₹470

NDP at FC = NDP at MP – Net Indirect tax

NDP at FC = 470 – 80

NDP at FC = ₹ 390 crore

30. Calculate National Income:-

Items(₹ in crore)
1. Net imports15
2. Net current transfers from abroad10
3. Goods and services tax (GST)30
4. Net change in stocks5
5. Net domestic capital formation60
6. Private final consumption expenditure350
7. Government expenditure on providing free services75
8. Depreciation10
9. Net factor income to abroad– 15
10. Subsidies5

Solution:-

NDP at MP = Private final consumption expenditure + Government expenditure on providing free services + Net domestic capital formation – Net imports

NDP at MP = 350 + 75 + 60 – 15

NDP at MP = ₹ 470

NNP at FC = NDP at MP – Net factor income to abroad – Net indirect tax (GST – Subsidies)

NNP at FC = 470 + 15 – (30 – 5)

NNP at FC = ₹ 460 crore

31. Calculate NNP at MP:-

Items(₹ in crore)
1. Gross domestic fixed capital formation80
2. Government final consumption expenditure150
3. Closing stock20
4. Private final consumption expenditure500
5. Net domestic capital formation70
6. Opening stock20
7. Net imports– 30
8. Factor income paid to abroad15
9. Net indirect tax40
10. Factor income received from abroad10

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net Dometic capital formation + closing stock – opening – Net imports

NDP at MP = 500 + 150 + 70 + 20 – 20 + 30

NDP at MP = ₹ 750

NNP at MP = NDP at MP + NFIA (Factor income received from abroad – Factor income paid to abroad)

NNP at MP = 750 + (10 – 15)

NNP at MP = ₹ 745 crore

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