Question

Given the following data, find the missing value of 'Government Final Consumption Expenditure' and 'Mixed Income of Self Employed'.

S.No.	Particulars	Amount (In ₹ crores)
(i)	National Income	71,000
(ii)	Gross Domestic Capital  Formation	10,000
(iii)	Government Final Consumption Expenditure	?
(iv)	Mixed Income of Self Employed	?
(v)	Net Factor Income from Abroad	1,000
(vi)	Net Indirect Taxes	2,000
(vii)	Profits	1,200
(viii)	Wages & Salaries	15,000
(ix)	Net Exports	5,000
(x)	Private Final Consumption Expenditure	40,000
(xi)	Consumption of Fixed Capital	3,000
(xii)	Operating Surplus	30,000

Answer 1

National Income (NNP_FC) = 71,000

We know,
NNP_FC = GDP_MP - Consumption of Fixed Capital - NIT + NFIA
71,000 = GDP_MP - 3,000 - 2,000 + 1,000
GDP_MP = 75,000

Now, we know as per the expenditure method:
GDP_MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports
75,000 = 40,000 + G + 10,000 + 5,000
G = 20,000
So, Government Expenditure is equal to ₹ 20,000

Now, NNP_FC = NDP_FC + NFIA
71,000 = NDP_FC + 1,000
NDP_FC = 70,000

Also,

NDP_FC = Compensation of Employees + Operating Surplus + Mixed Income
70,000 = 15,000 + 30,000 + Mixed Income 
Mixed Income = 25,000
So, Mixed-Income is equal to ₹ 25,000.