Estimate the missing values (?), if the value of Gross Domestic Product at factor cost (GDP at FC) by Expenditure Method and Income Method is ₹ 920 Crore
Estimate the missing values (?), if the value of Gross Domestic Product at factor cost (GDP at FC) by Expenditure Method and Income Method is ₹ 920 Crore:
| Particulars | ₹ Crores |
| (i) Consumption of Fixed Capital | 170 |
| (ii) Change in Stock | 140 |
| (iii) Mixed Income of self-employed | 180 |
| (iv) Operating Surplus | ? |
| (v) Gross Domestic Fixed Capital Formation | 140 |
| (vi) Government Final Consumption Expenditure | ? |
| (vii) Net Exports | (-) 50 |
| (viii) Net Indirect Taxes | 60 |
| (ix) Private Final Consumption Expenditure | 470 |
| (x) Compensation of Employees | 375 |
| (xi) Employer’s Contribution to Social Security Schemes | 150 |
Ans:-
Operating Surplus = ₹ 195 Crore; Government Final Consumption Expenditure = ₹ 280 Crore
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of Operating Surplus
NDP at FC = GDP at FC – Consumption of Fixed Capital
NDP at FC = 920 – 170
NDP at FC = ₹ 750
NDP at FC = Compensation of Employees + Mixed Income of Self-employed + Operating Surplus
₹ 750 = ₹ 375 + ₹ 180 + Operating Surplus
Operating Surplus = ₹ 750 – ₹ 375 – ₹ 180
Operating Surplus = ₹ 195 Crore
Calculation of Government Final Consumption Expenditure
GDP at MP = GDP at FC + Net Indirect Taxes
GDP at MP = ₹ 920 + ₹ 60
GDP at MP = ₹ 980
GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation ( Gross Domestic Fixed Capital Formation + Change in Stock) + Net Exports
₹ 980 = ₹ 470 + Government Final Consumption Expenditure + (₹ 140 + ₹ 140) + (- 50)
Government Final Consumption Expenditure = ₹ 980 – ₹ 470 – ₹ 140 – ₹ 140 + ₹ 50
Government Final Consumption Expenditure = ₹ 280 Crore
Anurag Pathak Changed status to publish November 6, 2023
