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Question
Calculate national income and operating surplus from the following data:
| (₹ crore) | |
| (i) Government final consumption expenditure | 800 |
| (ii) Net factor income from abroad | (−) 110 |
| (iii) Private final consumption expenditure | 900 |
| (iv) Net domestic capital formation | 200 |
| (v) Profit | 220 |
| (vi) Rent | 90 |
| (vii) Net exports | (−) 25 |
| (viii) Interest | 100 |
| (ix) Net indirect taxes | 165 |
Numerical
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Solution
Given Data: Government Final Consumption Expenditure (GFCE) = ₹ 800
Net Factor Income from Abroad (NFIA) = − ₹ 110
Private Final Consumption Expenditure (PFCE) = ₹ 900
Net Domestic Capital Formation (NDCF) = ₹ 200
Profit = ₹ 220
Rent = ₹ 90
Net Exports (X − M) = ₹ −25
Interest = ₹ 100
Net Indirect Taxes (NIT) = ₹ 165
Formula: Operating Surplus = Profit + Rent + Interest
= ₹ 220 + ₹ 90 + ₹ 100
= ₹ 410 crore
National Income (NNP at FC) = Private Final Consumption + Government Final Consumption + Net Domestic Capital Formation + Net Exports + Net Factor Income from Abroad
– Net Indirect Taxes
= ₹ 900 + ₹ 800 + ₹ 200 + ₹ (–25) + ₹ (–110) – ₹ 165
= ₹ 1,900 – ₹ 300
= ₹ 1,600 crore
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