Question

Given the following data, find the missing values of 'Private Final Consumption Expenditure' and 'Operating Surplus'.

S.No.	Particulars	Amount (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 & 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

Answer 1

National Income (NNP_FC) = 50,000
We know,
NNP_FC = GDP_MP - Consumption of Fixed Capital - NIT + NFIA
50,000 = GDP_MP - 700 - 1,000 + 500
GDP_MP = 51,200
Now, we know as per the expenditure method:
GDP_MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Consumption Expenditure + Net Exports
51,200 = P + 12,500 + 17,000 + 2,000
Private Final Consumption Expenditure = ₹ 19,700

Now, NNP_FC = NDP_FC + NFIA
50,000 = NDP_FC + 500
NDP_FC = 45,500
Also, 
NDP_FC = Wages and Salaries + Operating Surplus + Mixed Income
45,500 = 20,000 + OS + 13,000 
OS = 12,500
So, operating surplus is equal to ₹ 12,500.