Question

Calculate the balance of Balance of Payment account. Is the total balance of payment balanced ?

Items	Amount (Rs.)
(i) Capital Account Balance	(-) 400 crore
(ii) Value of imports	150 crore
(iii) Value of exports	450 crore
(iv) One -sided transfer	100 crore
(v) Balance of visible trade	200  crore

Answer 1

Balance of balance of payment account = Value of exports – Value of imports + One-sided transfers + Balance of capital account
= 450 crore – 150 crore + 100 crore + (- 400 crore)
= 450 crore + 100 crore – 150 – 400 Crore = 0
Yes, Balance of Payment is balanced Because balance of Payment account is zero.