Question

Calculate value of "Interest" from the following data:

S. No.	Particulars	Amount (₹ in crores)
(i)	Indirect tax	1,500
(ii)	Subsidies	700
(iii)	Profits	1,100
(iv)	Consumption of fixed capital	700
(v)	Gross domestic product at market price	17,500
(vi)	Compensation of employees	9,300
(vii)	Interest	?
(viii)	Mixed income of self-employed	3,500
(ix)	Rent	800

Answer 1

Given:
GDP_MP = 17,500
NDP_FC = GDP_MP - Consumption of fixed capital - NIT
NDP_FC = 17,500 - 700 - (Indirect Tax - Subsidies)
NDP_FC = 17,500 - 700 - (15,00 - 700)
NDP_FC = 16,000

NDP_FC = Compensation of Employees + Operating Surplus + Mixed Income of Self-Employed
NDP_FC = Compensation of Employees + Rent + Interest + Profits + Mixed Income of Self-Employed
16,000 = 9,300 + 800 + Interest + 1,100 + 3,500
Interest = 1,300.