Given the following data, find the missing values of ‘Private Final Consumption Expenditure’ and ‘Operating Surplus’ National Income ₹ 50,000
Given the following data, find the missing values of ‘Private Final Consumption Expenditure’ and ‘Operating Surplus’.
| Particulars | ₹ in Crores |
| (i) National Income | 50,000 |
| (ii) Net Indirect Taxes | 1,000 |
| (iii) Private Final Consumption Expenditure | ? |
| (iv) Gross Domestic Capital Formation | 17,000 |
| (v) Profits | 1,000 |
| (vi) Government Final Consumption Expenditure | 12,500 |
| (vii) Wages and Salaries | 20,000 |
| (viii) Consumption of Fixed Capital | 700 |
| (ix) Mixed Income of Self-Employed | 13,000 |
| (x) Operating Surplus | ? |
| (xi) Net Factor Income from Abroad | 500 |
| (xii) Net Exports | 2,000 |
Ans:-
Private Final Consumption Expenditure = ₹ 19,700 Crores; Operating Surplus = ₹ 16,500 Crores.
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of Operating Surplus
NDP at FC = NNP at FC – Net Factor Income from abroad
NDP at FC = ₹ 50,000 – ₹ 500
NDP at FC = ₹ 49,500
NDP at FC = Compensation of Employees (Wages and Salaries + Employer’s Contribution to Provident Fund) + Mixed Income of Self-Employed + Operating Surplus
₹ 49,500 = ₹ 20,000 + ₹ 13,000 + Operating Surplus
Operating Surplus = ₹ 49,500 – ₹ 20,000 – ₹ 13,000
Operating Surplus = ₹ 16,500 Crores
Calculation of ‘Private Final Consumption Expenditure’
GDP at MP = NDP at FC + Consumption of Fixed Capital + Net Indirect Taxes
GDP at MP = ₹ 49,500 + ₹ 700 + ₹ 1,000
GDP at MP = ₹ 51,200
GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports
₹ 51,200 = Private Final Consumption Expenditure + ₹ 12,500 + ₹ 17,000 + ₹ 2,000
Private Final Consumption Expenditure = ₹ 51,200 – ₹ 12,500 – ₹ 17,000 – ₹ 2,000
Private Final Consumption Expenditure = ₹ 19,700
Anurag Pathak Changed status to publish November 6, 2023
