Question

Calculate National Income and operating Surplus from the following data:

	PARTICULARS	(₹crores)
(i)	Government final consumption expenditure	900
(ii)	Net factor income from abroad	210
(iii)	Private final consumption expenditure	1000
(iv)	Net domestic capital formation	300
(v)	Profits	320
(vi)	Rent	190
(vii)	Net exports	(-) 75
(viii)	Interest	200
(ix)	Net indirect taxes	265

Answer 1

National income and operating surplus using expenditure method:

GDP_mp = Private final consumption expenditure + Government final consumption expenditure + Gross domestic capital formation + Net Export.

= 1000 + 900 + (300 + 0) + (−75) = ₹2125 crores

NNP_fc = GDP_mp − Depreciation+ NFIA - NIT

= 2125 − 0 + 210 − 265 = ₹2070 crores

Operating surplus = Rent + Interest + Profits + Royalty

= 320 + 190 + 200 + 0 = ₹710 crores.