GDP Expenditure Side Constant
The expenditure approach of measuring GDP depicts the final use (demand) of the output and comprises
- Private Final Consumption Expenditure (PFCE),
- Government Final Consumption Expenditure (GFCE),
- Gross Fixed Capital Formation (GFCF),
- Change in Stocks (CIS), and
- Net Export of Goods & Services
This is presented both at Current Prices and at Constant Prices. This section captures the latter
In the National Accounts Statistics (NAS) of India, the production approach GDP is considered firmer estimate; and the NAS presents the discrepancy with the expenditure approach GDP explicitly
Table below captures trend in GDP at Constant Prices measured by the expenditure approach
For 2023-24, and at Constant (2011-12) Prices, Private Final Consumption Expenditure (PFCE) was Rs. 99.1 lakh crore (same as Rs. trillion), Government Final Consumption Expenditure (GFCE) was Rs. 16.7 trillion, Gross Fixed Capital Formation (GFCF) was Rs. 59.2 trillion, Change in Stocks (CIS) was Rs. 3.1 trillion, Change in Valuables was Rs. 2.7 trillion, Exports of Goods and Services were Rs. 38.3 trillion, while Imports of Goods and Services were Rs. 43.9 crore
As highlighted, the production approach GDP is considered firmer estimate; and the NAS presents the discrepancy with the expenditure approach GDP explicitly. In line with that, for 2023-24, and at Constant (2011-12) Prices, the Discrepancies were Rs. 1.5 trillion
This translated into GDP at Current Prices, measured from expenditure side of Rs. 176.5 cr, (99.1 + 16.7 + 59.2 + 3.1 + 2.7 + 38.3 -43.9 +1.5) which matches with GDP measured from the production side
| Year | PFCE | GFCE | GFCF | CIS | VALUABLES | Exports of goods and services | Less Imports of goods and services | Discrepancies | GDP at Constant 2011-12 Prices | PFCE as a pct of GDP | Exports of goods services as a pct of GDP | Imports of goods services as a pct of GDP Constant |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023-24 | 99.1 | 16.7 | 59.2 | 3.1 | 2.7 | 38.3 | -43.9 | 1.5 | 176.5 | 56.1 | 21.7 | 24.9 |
| 2022-23 | 93.8 | 15.4 | 54.4 | 2.0 | 2.4 | 37.4 | -38.6 | -5.2 | 161.6 | 58.1 | 23.2 | 23.9 |
| 2021-22 | 87.3 | 14.8 | 50.1 | 1.6 | 2.8 | 33.9 | -35.4 | -5.0 | 150.2 | 58.1 | 22.6 | 23.6 |
| 2020-21 | 78.2 | 14.8 | 42.7 | 0.3 | 2.1 | 26.2 | -29.0 | 1.7 | 136.9 | 57.1 | 19.1 | 21.2 |
| 2019-20 | 82.6 | 14.9 | 45.9 | 1.1 | 1.6 | 28.1 | -33.2 | 4.3 | 145.3 | 56.8 | 19.4 | 22.9 |
| 2018-19 | 78.5 | 14.3 | 45.4 | 2.6 | 1.9 | 29.1 | -33.5 | 1.5 | 139.9 | 56.1 | 20.8 | 23.9 |
| 2017-18 | 73.3 | 13.4 | 40.8 | 2.1 | 2.1 | 26.0 | -30.8 | 4.4 | 131.4 | 55.8 | 19.8 | 23.4 |
| 2016-17 | 69.0 | 12.0 | 37.9 | 1.2 | 1.5 | 24.9 | -26.2 | 2.8 | 123.1 | 56.1 | 20.2 | 21.3 |
| 2015-16 | 63.8 | 11.3 | 34.9 | 2.4 | 1.9 | 23.7 | -25.1 | 0.8 | 113.7 | 56.1 | 20.8 | 22.1 |
| 2014-15 | 59.1 | 10.5 | 32.8 | 2.7 | 1.9 | 25.1 | -26.7 | -0.2 | 105.3 | 56.2 | 23.9 | 25.3 |
| 2013-14 | 55.6 | 9.8 | 31.9 | 1.3 | 1.5 | 24.7 | -26.4 | -0.3 | 98.0 | 56.7 | 25.2 | 27.0 |
| 2012-13 | 51.8 | 9.7 | 31.5 | 2.0 | 2.6 | 22.9 | -28.8 | 0.4 | 92.1 | 56.2 | 24.9 | 31.3 |
| 2011-12 | 49.1 | 9.7 | 30.0 | 2.1 | 2.5 | 21.4 | -27.2 | -0.3 | 87.4 | 56.2 | 24.5 | 31.1 |
The Private final consumption expenditure (PFCE) is defined as the expenditure incurred by the resident households and non-profit institutions serving households (NPISH) on final consumption of goods and services, whether made within or outside the economic territory. PFCE accounts for largest share of GDP in India (~60%)
The role of governmental agencies in the overall social and cultural development of a country, especially in a developing country like India, is immense. With this end in view, the Central Statistical Organisation (CSO) brings out estimates of gross domestic product, government final consumption expenditure (GFCE), savings, capital formation etc. for public sector every year
Gross Capital Formation (GCF) consists of the Gross Fixed Capital Formation (GFCF) and changes in stocks of inventories (CIS). Thus gross capital formation is that part of country`s total expenditure which is not consumed but added to the nation`s fixed assets and stocks
Valuables are defined as: Produced assets that are not used primarily for production or consumption, that are expected to appreciate or at least not to decline in real value, that do not deteriorate over time under normal conditions and that are acquired and held primarily as stores of value. As per United Nations System of National Accounts (UNSNA) recommendations, valuables as a separate item have been introduced in the expenditure side of GDP
View the trends graphically