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National Income Accounting

Question
CBSEENEC12013287

Calculate from the following data NNP at MP by (i) Income method, and (ii) Expenditure method.

   

(र in crores)

(i)

Compensation of employees paid by the government

40

(ii)

Mixed income of self-employed

50

(iii)

Wages and salaries

400

(iv)

Employers' contribution to social security schemes

80

(v)

Operating surplus

300

(vi)

Indirect tax

30

(vii)

Subsidies

10

(viii)

Net capital formation

150

(ix)

Net factor income from abroad

10

(x)

Government final consumption expenditure

230

(xi)

Private final consumption expenditure

500

(xii)

Exports

15

(xiii)

Imports

45

(xiv)

Consumption of fixed capital

20

(xv)

Profits

130

Solution

(i) NNP at MP (by income method)
= (ii) + (iii) + (iv) + (v) + (vi) - (vii) - (ix)
= 50 + 400 + 80 + 300 + 30 - 10 - 10 = 840 crores
(ii) NNP at MP (by expenditure method)
= (vii) - (ix) + (x) + (xi) + (xii) - (xiii)
= 150 - 10 + 230 + 500 + 15 - 45 = 840 crores