Question

Based on the table given below, the current account deficit in nominal terms as a percentage of GDP during 2012-13 will be _______ (rounded off to three decimal places).

Expenditure on Gross Domestic Product (Rupees in Crores)
At Current Prices		2009-10	2010-11	2011-12	2012-13
1.	Final Consumption Expenditures	448	525	617	696
2.	Gross Fixed Capital Formation	206	241	286	307
3.	Change in Inventory Stocks	18	27	17	17
4.	Exports of Goods & Services	130	171	215	243
5.	Imports of Goods & Services	165	205	272	311
At Constant 2004-05 Prices		2009-10	2010-11	2011-12	2012-13
1.	Final Consumption Expenditures	340	368	400	421
2.	Gross Fixed Capital Formation	159	117	199	200
3.	Change in Inventory Stocks	14	21	12	11
4.	Exports of Goods & Services	100	120	138	145
5.	Imports of Goods & Services	133	154	187	199

Answer 1

Correct Answer: 6.9

Step 1: GDP at Current Prices
Formula: \[ GDP = \text{Final Consumption Expenditures} + \text{Gross Fixed Capital Formation} + \text{Change in Stocks} + \text{Exports} - \text{Imports} \] Substituting values: \[ GDP = 696 + 307 + 17 + 243 - 311 = 952 \; \text{Crores} \]

Step 2: Current Account Deficit (CAD)
Net Exports = Exports – Imports \[ NX = 243 - 311 = -68 \] Since imports exceed exports, CAD = \( 68 \) Crores.

Step 3: CAD as a Percentage of GDP
Formula: \[ \% CAD = \left( \frac{CAD}{GDP} \right) \times 100 \] Substituting: \[ \% CAD = \left( \frac{68}{952} \right) \times 100 \approx 7.143\% \]

Step 4: Verification
The computed value is approximately \( 7.143\% \), correct to three decimal places. It is slightly above the range 6.9, but mathematically consistent with the given data.

Final Answer:
The Current Account Deficit as a percentage of GDP in 2012-13 is: \[ \boxed{7.143\%} \]